{"id":713376,"date":"2010-04-09T13:15:00","date_gmt":"2010-04-09T17:15:00","guid":{"rendered":"http:\/\/www.businessinsider.com\/well-well-foreclosure-squads-finally-headed-to-a-gated-community-near-you-2010-4"},"modified":"2010-04-09T13:15:00","modified_gmt":"2010-04-09T17:15:00","slug":"foreclosure-squads-finally-headed-to-a-gated-community-near-you","status":"publish","type":"post","link":"https:\/\/mereja.com\/index\/713376","title":{"rendered":"Foreclosure Squads Finally Headed To A Gated Community Near You"},"content":{"rendered":"

\"HousePornNickCage\"<\/p>\n

Well, it looks like the the foreclosure virus is becoming more egalitarian every day; its even moving into tonier neighborhoods:<\/p>\n

RealtyTrac is forecasting that Houses with $5 million+ mortgages will likely be the next class of loans to go belly up.<\/p>\n

While the overall numbers are small, they expect to see a sharp rise in foreclosures this year. In all of 2009, there were 1,312 houses with $5M+ mortgages scheduled for foreclosure auction. The spike is apparent this year — in the month of February alone, there were 352 homes nationwide in this category.<\/p>\n

Here’s the Journal:<\/p>\n

“Mortgage defaults began to surge in late 2006, mostly among borrowers with subprime mortgages, those for people with weak credit records or high ratios of debt to income.<\/p>\n

Over the next few years defaults spread rapidly to better-heeled borrowers, especially those who got loans without documenting their income. At the end of 2009, nearly eight million households, or 15% of those with mortgages, were behind on mortgage payments or in the foreclosure process. . .<\/p>\n

Big borrowers are more likely to default than ordinary people, according to data from First American CoreLogic. Its loan database, reflecting more than 80% of the overall home-loan market, includes 1,700 loans with balances of $4 million or more. About 14.8% of those loans were 90 days or more overdue at the end of January, compared with 8.7% for all home loans tracked by First American.”<\/p>\n

It turns out that the wealthy are not any better at forecasting their own future economic circumstances than the unwashed masses were . . .<\/p>\n

 <\/span>Source<\/em>:
Foreclosures Hit Rich and Famous<\/a>
CRAIG KARMIN And JAMES R. HAGERTY
WSJ, APRIL 9, 2010
http:\/\/online.wsj.com\/article\/SB10001424052702304198004575172303998670976.html<\/p>\n

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This post is reprinted <\/a>from Barry Ritholtz’s The Big Picture.
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