Million Dollar Homes In Foreclosure

Realty Trac reported that foreclosures of million dollar homes has been increasing since the end of 2009.  In February 2010 there were 4,159 high end homes in foreclosure.  That works out to be a 121% increase from what they were in 2009. 

When this whole market started declining I was talking to a very close associate on my team and we agreed  mid price and high end were the next to fall, and that prediction came true.  This decline comes on the heels of stabilization in low and moderate homes. 

Owners of high end homes were just better able to ward off foreclosure by their cash reserves and charge cards and credit, where the lower end exhausted their savings. 

Core logic's data shows that the 90 day delinquency of high end homes hit 13.3 % in February 2010.  However, we are finding that banks are more willing to negotiate the loan or accept short sales because this is a large loan to have on their books.  The cost of holding a high end can be very expensive.

With prices declining the way that they are, the days of equity in your home is over, and alot of high end home owners have lost the equity that they have had in their homes and thus their reserves.  There of course the "strategic defaulters" who have stopped making mortgage payments because of this decline in prices.

Foreclosure can hit any neighborhood, as we are finding out, any price , any one.  Please visit our website nevadainvestmenthomes.com for more information on foreclosures and short sale and contact me Pat Yoest for all your real estate needs in Las Vegas.