Dec
28th
2009
Posted By: Craig Richardson @ 7:20pm In: Real Estate Market News
With the downturn in the economy resulting in layoffs and other negative impacts, those with mortgages of $1 million and higher are defaulting at nearly twice the rate of the U.S. average. According to Bloomberg News, payments on "12% of mortgages exceeding $1 million were 90 days or more overdue in September, compared with 6.3% on loans less than $250,000 and 7.4% on all U.S. mortgages." The rise in the default rate of high-end mortgages to 12% is significantly higher than earlier in the year when the rate stood at only 4.7%.
Like many homeowners who are upside down on smaller mortgages, those holding notes $1 million and higher are turning to short sales as one way out of their predicament, the news service reports.
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