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Rich Default Far More Than the Rest of Us

Wealthy 'are more ruthless,' says analyst

By Emily Rauhala,  Newser User

Posted Jul 9, 2010 2:49 AM CDT | Updated Jul 9, 2010 6:10 AM CDT

(Newser) – Whether they're throwing in the towel on a California beach home or ski chalets, wealthy Americans are currently defaulting on mortgage payments at extremely high rates. One in 7 of those who owe more than $1 million on property are seriously delinquent, reports the New York Times. For those who owe less than that, the rate is one in 12. The difference is that wealthy dump homes as they would other investments.“The rich are different: they are more ruthless,” says an analyst.

It may seem odd to picture the rich as the new face of foreclosure, but the wealthy have more in common with the middles class than they they'd like to think. “They made their plans based on the best of all possible scenarios," says one Las Vegas agent. They assumed "that their incomes would continue to grow, that real estate would never drop." It didn't happen that way. (But if you're still somehow in the market for a million-dollar home, click here to read about a tony new development of them...in a surprising place.)

The new face of foreclosure.
The new face of foreclosure.   (PRNewsFoto/Glenmere Mansion, Sargent Photography)
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COMMENTS
Showing 3 of 25 comments
bobbolink813
Jul 11, 2010 2:10 PM CDT
Re: Rich Default Far More Than the Rest of Us; “They made their plans based on the best of all possible scenarios" I feel it safe to presume that the overwhelming majority of these "folks" voted for George W./"Prick"Cheney, not once, but twice! To say that they deserve the consequences of that fiasco of a Presidency, is being kind. Unfortunately, this economic quagmire "dumped by the side of the road" by those two crooks, is wreaking havoc with most Americans; countless people have lost their life's savings, retirement funds, etc.; I count myself among those in serious trouble and have no doubt as to where the blame lies! Shame on them for taking their responsibilities in such a cavalier manner.
rmhopper3
Jul 11, 2010 2:11 AM CDT
Is anyone really surprised ....and thse people are wealthy...if you have cash or credit to buy all this extra property you are wealthy....Funny i dont hear anyone calling these rich aholes bums and they dont really lose that much if they sacrifice two of their five homes ...Please these people by and large are the same ones that own or work for the companies that puit us in this mess in the first place....Those of thw wealthy who are truly innocent in all this you have my heart felt sympathy ''''not so much for the participatants
myflap.blow
Jul 10, 2010 1:32 PM CDT
its okay, they hedged themselves and got even richer!

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