The richest of the rich with the highest mortgages are expected to see a sharp rise in foreclosures during 2010, thereby joining the middle class and even the poor in a situation that nobody wants to be in.
In the year 2009, there were 1312 houses with a mortgage of over $5 million that went to foreclosure auction. This year in just the month of February alone there were 352 homes scheduled for auction.
The overall numbers are rather small, however, the overall numbers of these types of loans are also small. There are not too many single family home mortgages over $5 million. And comparatively the current delinquency statistics are even higher for the high-end mortgages than the average mortgages.
According to economists the super-wealthy are the last to lose their homes or suffer the consequences of a bad economy because they usually have a higher rate of savings along with better access to credit and so forth. However, the rate of default is higher
Check out this article from the Wall Street Journal for more information.
And another one here, The Rich Are Different…