Defaults of the Rich: Walking Away From the McMansions
Defaults of the Rich: Walking Away From the McMansions
Wealthy home owners with huge loans worth more than the value of their mansions are walking away from luxury homes in some of California's toniest neighborhoods, even if they still can afford the monthly payments.
Foreclosures on loans over $1 million are up nearly 600 percent nationwide since 2008 and, according to a Reuters report, at least 180 houses in Beverly Hills alone have been foreclosed, scheduled for auction, or served with a notice of default in recent months.
The problem is acute in California, one of a few "non-recourse" states where a lender can only recover the house and not the owner's other assets after a default.
Source: "Defaults of the Rich: Walking Away From the McMansions," Kcet.org (02/20/12)
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