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Foreclosures on Pricey Properties Pick Up

Well-to-do buyers weren't immune to wacky loans, and they're coming due

By Harry Kimball,  Newser Staff

Posted Oct 12, 2009 9:19 AM CDT
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(Newser) – The country's most expensive homes are now making up a larger segment of foreclosures in the most recent spike of mortgage defaults. An analysis of recent data shows that 30% of June foreclosures involved homes valued in the top third based on location; that’s up from just 16% at the beginning of the crisis. “The slope of that curve in recent months is much sharper than it was recently,” an economist tells the Wall Street Journal.

Conversely, homes valued in the bottom third of local markets were responsible for 35% of June foreclosures, down significantly from 55% in 2006. The spike in foreclosures on expensive homes is highlighted by the sort of loans that are going bad: Prime loans—which include so-called “exotic mortgages” often used to buy pricey properties—accounted for 58% of foreclosures in the second quarter of this year. Last year, that number was just 44%.

Foreclosures are up across the board, not just on expensive homes.
Foreclosures are up across the board, not just on expensive homes.   (AP Photo)
Foreclosure on the rise.
Foreclosure on the rise.   (AP Photo)
A house for sale in San Francisco.
A house for sale in San Francisco.   (AP Photo)
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COMMENTS
Showing 3 of 7 comments
nick
Oct 12, 2009 8:15 AM CDT
Today's so-called conservatives are conservatives in name only. As a group, their common bond appears to be that they hate liberals!
BBT
Oct 12, 2009 4:59 AM CDT
Probably busy whacking it off to Glenn Beck every time he misspells a word.
odowd80
Oct 12, 2009 3:50 AM CDT
Ask not what the country can do for you, but what you can do for your country. What are you doing, dontlikeyou, to make your country better? What are you doing to improve the economy? Or are you just waiting for the government to solve your problems. Coming from someone who hates government, it sounds like you have pretty high expectations from it.
Money • US

 
housing market • mortgage • credit crisis • homeownership • mortgage defaults • exotic loans • expensive • foreclosures

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