Wealthy Default On Mortgages at Higher Rate than Poor and Middle-Class
So much for the right-wing’s ‘moral hazard’ argument as regards to the poor (they somehow never apply it to the rich). Turns out the top 10 percent in income, who have benefited from all those lavish tax cuts since St. Ronnie was president, are dumping their luxury homes at much a higher rate than those below them on the economic ladder. Gee, who would of thought that those who can afford to pay the mortgage would just stiff the bank?
Biggest defaulters on mortgages are the rich
Wealthy simply see loss of home as one bad investment and walk away
The New York Times
July 8, 2010
An excerpt from the article:
“More than one in seven homeowners with loans in excess of a million dollars is 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.”