Housing Woes Effecting Higher End Homeowners Too
Strategic Default – Housing Woes Effecting Higher End Homeowners
More on Strategic Default: When the housing meltdown in California started it was seemingly only affecting the medium to lower priced homes. Of course the higher end wasn’t completely safeguarded but, for example, when you owe $900,000 and your house value drops to $800,000 it doesn’t quite seem as bad as when you owe $300,000 and your house value drops to $125,000.
Well the news reported today by the Daily Real Estate News quotes RealtyTrac saying foreclosure activity on homes priced above $1 million or higher have soared 489 percent since 2007 versus 105 percent for homes worth less.
Newsworthy as higher priced home meltdown
This is newsworthy because the higher priced home meltdown just isn’t in the public eye as much and the total number of homes is a much smaller number. One of the reasons you don’t hear about this as much is because people losing a home worth over a million dollars don’t stop at the water cooler and complain about the greedy banks.
As most people know you can use numbers and statistics to present whatever spin you want but the other part of this story are the people living in 1 million dollar plus homes that are deciding to “Strategically Default”. As their home value drops so does the desire to hang on to the depreciating investment. For them it no longer is an investment when the emotional attachment becomes outweighed by the realization that the value is not coming back.
Knowing is half the battle
As an licensed California attorney and real estate broker specializing in distressed assets I hear it firsthand – from the horses mouth so to speak. People with a lot at stake are the first ones to realize they need to talk to a lawyer who knows this area and that certainly is me. What I do for them is explain the options they have and most importantly I help them understand the legal consequences of those options. Will the bank be able to sue me? – will they be able to garnish a paycheck? – what about my “other” assets? – what about my retirement accounts? These are some of the important questions I hear daily from concerned homeowners.
The good news for these clients is that I do not charge anything for the consultation and if they end up doing a short sale, which quite often is the best approach, they don’t pay anything to me for that either and I oversee the whole transaction giving them legal advice along the way. Most people don’t realize that the bank or the buyer pays all the costs when I handle a short sale for them.
I am seeing more and more higher end clients coming in my door to get the advice they so need in regards to strategic default. The lower end of the spectrum in most areas is close to the bottom but I see the higher end still coming down.
Quoting from the article published today by RealtyTrac “We are seeing more people who can afford to make the mortgage payment but it just doesn’t make financial sense when they still have this large negative equity amount they are dealing with”.
If you have any questions or concerns about your own personal situation I would be happy to give you a FREE legal consultation. You can call me at 916.442.6400 or send me an email at firstname.lastname@example.org or go to my website www.upsidedownca.com.
California Attorney and
licensed Real Estate Broker