The mortgage problems and catch up with richer Americans
Rich in the U.S. already have something in common with hundreds of thousands of middle-class Americans - the bank is about to take them home, \"wrote Wall Street Journal.
This year will likely be reporting a sharp jump in the number of forced withdrawals houses with mortgages for $ 5 million or more, according to a survey of RealtyTrac, commissioned by the newspaper.
Only in February in the U.S. were 352 scheduled auctions for properties with mortgages over $ 5 million, which is the last step before you take the bank. This is the largest monthly number of these so-called notices of sale by the beginning of the crisis. In comparison, throughout 2009 there was a general in 1312 such notices.
Economists explain that in general the richest last lose their properties in a mortgage crisis because they typically have large savings, better access to credit and other ways to avoid the forced withdrawal of their homes. However, many of them working in the financial sector and other affected particularly hard by the crisis and their wealth was fused by the collapse of the capital market.
Although the number is modest compared with that of cases of enforced withdrawal at other levels of income seems to be an opportunity for a sudden increase in property acquired by the banks of the richest Americans. Usually half of the notices leads to seizure of property by the creditor, although wealthier borrowers, this figure may be slightly lower, says Darren Blokvist from RealtyTrac.
In people with large loans are more likely to overdue loans in comparison with ordinary people, according to First American CoreLogic. The database company, which reflects over 80% of the total market for home loans in the country in 1700 has held for over 4 million dollars. About 14.8% of them at the end of January with arrears of 90 days and more than 8.7 percent of all loans that the company monitored.
Expensive properties harder to sell because there are fewer buyers and it is difficult to obtain financing, but there are psychological element in the problem. \"It is very difficult for these owners to believe that the situation has turned bad,\" said Maggie Navarro, an official at Coldwell Banker Old Pasadena in Southern California.
Published on 2012-05-22 10:17:22
Source: Investor.bg
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