The Foreclosure Timeframe Given To Luxury Home Owners Is Six Months Longer Than Most

1 March 2012

People that have money tend to have it easy and the same thing applies for people who are dealing with foreclosure as people who are in default with loans that are worth $1 million or more are given the option of staying in their home for about six more months than those who are in default with loans of less than $250,000.

The reason behind this is that the smaller mortgages are given foreclosure timeframes which are stricter since there is a higher chance of these properties being sold into securities which are supported by Fannie and Freddie who sets these timeframes into place.

These scenarios only prove how things tend to vary for people who remain on top of the property market, especially now that the market for high-end properties continue to grow at a steady pace which people can attribute to a number of reasons.

In areas such as Detroit, property buyers who have been eager to find options which fall within the $250,000 to $750,000 price range have managed to do so because of the fact that they have been able to qualify for mortgages while still being able to get discounted rates on the properties offered within the area.

In areas such as Silicon Valley, there have been overnight successes on the real estate market because of tech companies who have been able to make cash investment on a selection of luxury home properties on the local market.

Other luxury real estate markets have been receiving a major boost from international sources who have been sweeping up the most expensive properties across the United States due to the fact that these have been considered to be among the most effective status symbols around today.

Going back to the subject of wealthy individuals being given a more lenient period of time with regards to the foreclosure process, more and more of these people have got to the point of understand the foreclosure crisis situation. According to CNNMoney, foreclosures on real estate properties that are worth $2 million or more make up for a much larger share of foreclosures across the United States compared to the last couple of years.

Nowadays, it seems that many wealthy homeowners who have found themselves in default tend to just walk away from their properties, even within ultra-luxury areas across the United States. But instead of being caught up in financial issues, it seems that many of them have other intentions behind their actions.