July 20, 2010
The New York Times and CoreLogic examined a bunch of data and found that the rich are more likely to purposefully default on their mortgages — to “strategically default” — than lower-income homeowners.
Interesting to find this, as earlier I posted about the new-school thoughts on home-ownership, and how homes are not being seen as castles but simply as assets.
Check out what the New York Times writes:
More than one in seven homeowners with loans in excess of a million dollars are seriously delinquent, according to data compiled for The New York Times by the real estate analytics firm CoreLogic.
By contrast, homeowners with less lavish housing are much more likely to keep writing checks to their lender. About one in 12 mortgages below the million-dollar mark is delinquent.
Though it is hard to prove, the CoreLogic data suggest that many of the well-to-do are purposely dumping their financially draining properties, just as they would any sour investment.
“The rich are different: they are more ruthless,” said Sam Khater, CoreLogic’s senior economist.
Maybe my conclusion was wrong about this new school mentality. Maybe it is just a “rich person” mentality?