"Wealthy people do NOT, for example, borrow money to buy a personal residence or a car."
Then this will shock you. clo
Wealthy Walk Away From Mortgages
By Gerri Willis
Published July 09, 2010
It's been said only the good die young; and now apparently only the middle class pay mortgages.
A new study by Corelogic shows it's the wealthy homeowners that are more likely to walk away on their mortgages.
According to the data, more than one in seven homeowners who have mortgages of more than a $1 million are "seriously delinquent.’ Compare that to one in 12 - or only 8% - of those with less-expensive loans.
Corelogic gives a reason for these numbers to the New York Times: "The rich are different, they are more ruthless."
Also many people buying up those million-dollar plus homes often look at the real estate as investments... and what do you do when an investment goes south?? Walk away!
As for those investment or second homes, Corelogic says delinquents on those topping the million dollar mark sit at 23%, while it's just 10% on the cheaper ones.
Lenders are no doubt breaking out in a cold sweat watching the 11 million homeowners across the country who are underwater, wondering if they will be next to walk away...
A Corelogic rep went on to say to the paper: "those with high net worth have other resources to lean on if they get in trouble."
So to me this isn't just an excuse to bash the wealthy...
but a testament to the middle class...
They understand the value of a dollar and the value of a contract.
Many are just too proud to throw up their hands and wave the white flag - for better or for worse.
http://www.foxbusiness.com/personal-finance/2010/07/09/wealthy-walk-away-mortgages/
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