Wealthy Neighborhoods not Immune to Foreclosure Crisis

Millions of Americans are facing foreclosure and low-income and middle class individuals or families aren’t the only ones facing this crisis, homes in pricey zip codes are also troubled, and well-off homeowners must walk away from their mortgages or hire a foreclosure lawyer.

According to Forbes, some of the most affluent neighborhoods in the country are feeling the brunt of decreasing housing prices and the economic downturn.

Florida is one of the states with a high number of foreclosures both for middle income and wealthy homeowners. Fisher Island, a wealthy enclave in Miami Beach, has a 20.5 percent foreclosure rate. Another area plagued by troubled mortgages is Rosemary Beach with 9.9 percent of homes in some stage of foreclosure, according to the statistics compiled by Forbes.

New York State and Northern New Jersey have the highest number of affluent zip codes and also facing high foreclosure rates. In these states, the foreclosure process takes longer than other areas.

There are two reasons for these defaulted mortgage loans, loss of income, is the primary reason. But strategic defaults also play a part in the high foreclosure rates. In a strategic default, these homeowners choose to walk away from the home instead of retain a foreclosure attorney for deliberate financial reasons.

For the wealthy, a foreclosure lawyer is not able to get a mortgage modification because their income is too high or they don’t qualify for a short-sale.