BANKRUPTCY: Rising Rate of Foreclosures in the High End Home Market
According to RealtyTrac, since 2007, the share of foreclosures on properties valued at more than $2 million out of all foreclosure activity has increased by 273%. The owners of high end homes were able to delay the foreclosure process as others struggled, but now the frequency of these homeowners falling behind on their payments has intensified. The slowing economy in the past few years is finally catching up with families in the higher tax brackets. Their businesses are forced into Chapter 7 bankruptcies, while personal bills continue to pile up. The reason the current situation in even worse is the fact that banks are still reluctant to lend, credit is still very tight and to meet the guidelines in order to qualify for a mortgage or loan are almost impossible. Even as these homeowners consider selling their homes, there are real estate related issues to consider. The market still remains pretty dry in most states; values of these homes have fallen on average around 30% since 2008. All of this is especially tougher on those homeowners whose homes are listed for over $1 million, and over 36,000 homes in that price range have so far been foreclosed on. According to Daren Blomquist, vice president of RealtyTrac, that number is likely to rise further in 2012.
Agarunov Law Firm
Bankruptcy Attorneys
BANKRUPTCY: Rising Rate of Foreclosures in the High End Home Market
According to RealtyTrac, since 2007, the share of foreclosures on properties valued at more than $2 million out of all foreclosure activity has increased by 273%. The owners of high end homes were able to delay the foreclosure process as others struggled, but now the frequency of these homeowners falling behind on their payments has intensified. The slowing economy in the past few years is finally catching up with families in the higher tax brackets. Their businesses are forced into Chapter 7 bankruptcies, while personal bills continue to pile up. The reason the current situation in even worse is the fact that banks are still reluctant to lend, credit is still very tight and to meet the guidelines in order to qualify for a mortgage or loan are almost impossible. Even as these homeowners consider selling their homes, there are real estate related issues to consider. The market still remains pretty dry in most states; values of these homes have fallen on average around 30% since 2008. All of this is especially tougher on those homeowners whose homes are listed for over $1 million, and over 36,000 homes in that price range have so far been foreclosed on. According to Daren Blomquist, vice president of RealtyTrac, that number is likely to rise further in 2012.
Agarunov Law Firm
Bankruptcy Attorneys