Tuesday, November 10, 2009

Foreclosures come to High End Zip Codes

The S.F. Chronicle had a feature article on Sunday describing how notice of defaults are spiking in the affluent neighborhoods in the North Bay.

Here is a key quote:

"A lot of people in California who own $1 million to $3 million homes bought larger and more expensive homes than they really needed," said Peter Schiff, president of Euro Pacific Capital in Darien, Conn. "Part of their purchase was for investment purposes, because they assumed values would go up. Now that people have a more realistic outlook on real estate prices, it changes the dynamic. There is very little reason for someone with a million-dollar mortgage on a $700,000 house to struggle to make that payment. More and more people are going to walk away from these homes."

And here is a key graph:

1 comment:

  1. I believe with others that better educated and more prosperous individuals are more likely to choose an efficient breach of contract.


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