Rich American families are facing foreclosure
A tragedy for many often becomes an opportunity for others
Five years after the bursting of the housing bubble, America’s rich families have also been affected by the crisis and are now losing their homes to foreclosures.
Realty Trac has spread the news that over 36,000 1-million-dollar homes were foreclosed in 2011, which is a considerable foreclosure activity rise. In particular, the share of foreclosures on million-dollar properties has risen by 115% since 2007. On the contrary, foreclosures on mid-range properties fell by 21%.
Many high-end homeowners have made a business decision. They have preferred to move away from their home, even if they can afford the monthly mortgage payments, due to the fact that they owe more on the property than it is worth.
What’s the situation in Florida? 47% of homes are under water. Most sales are homes in distress. Thousands of homes are on the market. Listings on the internet show how a tragedy for many becomes an opportunity for others. There are homes for sale for as low as 5,000 dollars on the market and investors are interested in entire neighbourhoods.
Chip Parker – a foreclosure defence litigator – highlighted how the sense of community is lost when neighbours are forced to go away and leave their home vacant. Sid Rosenberg said the average home price is down 80,000 dollars from the peak. The foreclosure started before the job loss, but fixing the job market is undoubtedly a key factor to fix the housing market. If people do not have a job , or even if people have a job, but it is not consistent, they do not feel good about buying a house.
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