Wealthy Americans Increasingly Fall into Foreclosure

The foreclosure crisis has hit the middle-class pretty hard and many people have lost their modest homes. And while many of these homeowners have retained foreclosure attorneys to help them prevent eviction, a large number of wealthy Americans are welcoming foreclosure.

Since 2007, the rates if default notices for homes over the million dollar price range have raised dramatically, CNN reported. These high-priced homes are accounting for a larger portion of foreclosures than in the past. Over 36,000 homes valued over $1 million were foreclosed or served a default notice in 2011.

Unlike lower and middle income homeowners who simply ran out of money, wealthy homeowners are making the decision to allow their home to go into foreclosure. They often owe more than their homes are worth so default makes more sense to them. This is called a strategic default and is often employed by financially savvy people.

RealtyTrac’s Darren Blomquist explained to Forbes, “Strategic default can be an even bigger issue with higher-end homes…because the borrowers may be more financially shrewd and consider it a financial decision to walk away from a home.”

While wealthier homeowners consider foreclosure a strategic financial decision, other homeowners will take whatever steps necessary to avoid eviction. A foreclosure lawyer can offer troubled homeowner with options that may keep them in their homes.  Foreclosure attorneys can negotiate for a mortgage modification or challenge the bank’s decision.