Short sales are used to free them of high mortgages

(Source: Bloomberg News)

Homeowners with mortgages of more than $1 million are defaulting at almost twice the U.S. rate, and some are turning to so-called short sales to unload properties as stock-market losses and pay cuts squeeze wealthy borrowers.

“The rich aren’t as rich as they used to be,” said Alex Rodriguez, a Miami real estate agent with JM Group USA Inc., whose listings include a $2.9 million property marketed as a short sale because the price is less than the mortgage, leaving the bank with a loss. “People have reached the point where they can’t afford the carrying expenses of a $2 million home.”

Read Kathleen M. Howley and Dan Levy’s full article “Luxury homes owners default at twice US rate” in the News Telegram (December 27, 2009).

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