According to this New York Times article: (Click here to read), the following is taking place:
More than one in seven homeowners with loans in excess of a million dollars are seriously delinquent, according to data compiled for The New York Times by the real estate analytics firm CoreLogic.
The article goes on to say that only 1 in 12 below the million dollar mark is deliquent!
Okay, so perhaps the rich aren’t out on the streets… In fact, usually it’s a 2nd home or a rental property that they are delinquent with the payment…
The article states that the Rich are more ruthless. Actually first, I’m sure if “us, less than rich folks” had a 2nd house or rental property, we would consider unloading it too, especially if we were losing money on it.
Second, I think since the government is attacking this social class, they no longer feel obligated to do what is best for the economy or government. After all, they are being secretly or blatantly (depending on your viewpoint), attacked from the government. So why care, since they are being view as the bad guys anyway.
Mostly, I think they see it as a bad investment that no longer makes sense though.
I initially was going to write this post around the fact that strategic defaulters are bad, and I would take the high road and stick it out. But, since the 2nd home or rental property is really an investment… Now, I’m not so sure! I would like to think I’d do the right thing, but they are losing money on these investment, and the government is kicking them while they are losing that money…
Readers, what would you do if you have a 2nd home or rental property in a place like Las Vegas (where the value of homes have practically halved)?