Mortgage Default Rates Highest Among the Rich
Wealthy homeowners are more likely to default on mortgage payments than suburban middle and working classes.
More than one in seven homeowners with loans in excess of a million dollars is seriously delinquent, reports the New York Times. In contrast, about one in 12 mortgage holders below the million-dollar mark have stopped payments to lenders.
Some experts suggest the trend is a purposeful tactic by the upper class to dump sour ventures, particularly investment and second homes, with little concern for the civic good or potential lawsuits by lenders, according to the Times.
“The rich are different: they are more ruthless,” said Sam Khater, senior economist at real estate analytics firm CoreLogic, which compiled data for the Times.
Related ABAJournal.com coverage:
Fannie Mae to Punish Borrowers Who Strategically Opt to Walk Away from Mortgages
Updated at 1:11 p.m. to add related coverage.
