The New York Times has recently published an article saying the rich are in default on their mortgages at a higher percentage than the average home owner. The recession has obviously affected the middle class, and now it’s starting to reach the wealthy. According to a real estate analytics firm, more 1 in 7 homeowners with loans over $1 million are in default. In contrast, homeowners with lower priced homes are delinquent on 1 out of 12 mortgages. For investment or second homes over $1million, the delinquency rate is 23%.
The Rich Are Dumping Their Mortgages
