|
 A mansion in Cherry Hills is
included in an article on CNN Money about multi-million dollar foreclosures
across the U.S.
In January 2012,
one in every 624 U.S. households got hit with some sort of foreclosure filings
No one is immune to the housing
crisis. In elite neighborhoods, "the majority of delinquent
homeowners owe more than $1 million." writes Tim Reid for News Daily. "Many are walking away not because they can't
pay, but because they judge it would be foolish to keep doing so."
Property values have
dropped dramatically, especially in higher end neighborhoods, such as
Cherry Hills. The home, offered by Kentwood Real Estate, is
listed at $4.6 million which is almost half the original asking price of $8.9
million. Owning a multimillion dollar
home can also mean carrying a multimillion dollar loss.
"It's a
business decision, not an emotional one," said Deborah Bremner, owner
of the Bremner Group at Coldwell Banker, which specializes in high-end
properties in Los Angeles. "I go to cocktail parties and all
people are talking about is whether it is time to walk away."
The term used is "strategic default". Only a few states are "non-judicial" when it
comes to foreclosures. This means that
the primary mortgage is secured only by the property itself and if a homeowner walks
away, the banks cannot go after wages or other assets if they (strategically) default. Colorado is among these states.
"Strategic defaults
are now more likely among jumbo loan-holders than any other type of
borrower," writes Reid. Jumbo loans are
for mortgages too large to be insured by Fannie Mae and Freddie Mac. "Foreclosures
on jumbo loans are up 579 percent since 2008, greater than any other form of
loan."
More and more "underwater" homeowners
in all price levels are choosing to just walk away from their mortgages. This has become a financial decision.
Surprisingly enough, those most likely to walk away are homeowners 65 and
older.
It's about quality of life in the next 30 to 40 years, and having
that kind of debt hanging over their heads just doesn't make sense.
Read the full
story at News Daily.
See more
multimillion dollar foreclosures at CNN Money.
Want more info on the Cherry Hills Home?
Posted on February 22, 2012 10:39:32 by  IPTV.Boyz
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