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But where did they move to? I would assume that they walked away from their current mortgage after buying another home at a better price.. I bought another home that was 6,000 sf at a 50% discount 2 years ago, and still hold my original home.. I could very well consider walking away due to financial issues if I wanted to ignore the credit issues which would come from such actions.
But to the rich they often are.
Most middle and working class people will scrimp and save and fight to keep their home. If you are rich and have three homes, losing one isn't going to hurt anything but a credit score or investment portfolio.
My only hope is that, where they can, banks are going after them for deficiency judgments.
I can't speak for anyone else but I blame EVERYONE that took out mortgages they could not afford AND the banks for giving loans they knew people could not afford.
Working people could not and cannot afford to speculate on their housing so, except for the very gullible, tended to buy within their means. The main reason for workers defaulting are medical bills and/or unemployment.
Relatively wealthy, but not really rich, people saw the possibilities of getting much wealthier by speculating and "flipping" homes. This speculation was fueled by very low interest rates and insignificant margin requirements. The first in made bundles of money and, if they pulled out in time, managed to screw others out of their money.
Thus it makes sense that most defaults were caused by people that thought they had enough money to gamble on houses. In many cases they guessed wrong and cannot make their margin calls and there is no body wants or needs to buy the houses at the speculatively inflated prices.
Sometimes a gambler will roll a seven and sometimes a snake eyes.
Rent, move in with mom and dad, buy a smaller place at the bottom of the market, pay cash. Lot of cash buyers out there these days. At least in Florida.
Just goes to show that the rich are taking advatage of the current economic downfall to pickup deals..
Quote:
Originally Posted by TriMT7
But to the rich they often are.
Actually to the rich they are expenses, not investments..
Quote:
Originally Posted by TriMT7
Most middle and working class people will scrimp and save and fight to keep their home. If you are rich and have three homes, losing one isn't going to hurt anything but a credit score or investment portfolio.
My only hope is that, where they can, banks are going after them for deficiency judgments.
Are you hoping they do the same to the poor, or is it class envy you are displaying?
Yes, there are those who default because they can afford the ARMs etc, but the article ways "Biggest Defaulters on Mortgages Are the Rich".
Well if you want to be acurate, the article did not say that, the headline did.
Also it is probably not true. The article points out that 1 in 7 mortgages over a million dollars are in danger of default as opposed to 1 in 12 of those less than a million. But there are far more mortgages under a million than over so in the aggregate there are probably more dollars owed by the smaller mortgage holders than those over a million.
This is a ridiculous article (NY Times / ridiculous..who would have thought) because if you read the article..they are comparing apples and oranges. There are vastly more mortgages under $1 million that are in default than there are over $1 million. But if you manipulate the data, so that we can blame all the "rich people" for the financial crisis..well it's a shame to let a good crisis go to waste...it is statistically plain wrong and deceiving...but it is typical liberal dribble trying to stir things up to get their far left cooks re-elected..and it is not going to work this time...
Working people could not and cannot afford to speculate on their housing so, except for the very gullible, tended to buy within their means.
Heh if you could have pulled this out from any deeper you hand would have been four feet into your small intestine.
There have been so many profile stories about people buying more than they could afford and a very large portion of them are in fact working/middle class folks. People who make 35k and bought the 300k house with the ensuing anger at the bank for letting it happen has almost become a cliche for the housing crisis, yet here you are declaring it didn't happen it was all evil rich people trying to make money speculating in real estate.
Wealthy and upper middle class did it too, but there was certainly subprime mortgages with rate adjustments kicking people in the butt who were middle/working class.
Regardless if the government "pushed" these loans onto people (which I don't think they did); but it's no one's fault but the people who agreed to it. I got pre-approved for $200,000 on a home loan, but that doesn't mean I can afford it... People are dumb and when things backlash they have to blame someone, b/c it definitely wasn't their fault.
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