NYT, CoreLogic Study Luxury Home Default Rates

Posted by Orb Staff on July 09, 2010 No Comments
Categories : Mortgage Servicing

York Times article published Thursday shows that the delinquency rate among well-off borrowers is far greater than that of middle-class homeowners. The article, titled ‘[link=http://www.nytimes.com/2010/07/09/business/economy/09rich.html?_r=2&hp NYT: ]Biggest Defaulters on Mortgages Are the Rich[/link],’ cited data compiled by CoreLogic. According to the CoreLogic study, one in seven borrowers with mortgage loan amounts greater than $1 million is delinquent on his or her payments, versus one in 12 borrowers with loans less than $1 million. A quotation from CoreLogic's senior analyst, Sam Khater, suggests the high-end borrowers are defaulting strategically. "Those with high net worth have other resources to lean on if they get in trouble," Khater told the Times. "If they're going delinquent faster than anyone else, that tells me they are doing so willingly." CoreLogic additionally found that the delinquency rate on $1 million-and-above investment homes was more than twice the rate on less-expensive investment homes – 23% versus 10%. SOURCE: [link=http://www.nytimes.com/2010/07/09/business/economy/09rich.html?_r=2&hp NYT: ]New York Times

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