Wealthy homeowners are far more likely to be delinquent on their mortgages than less affluent borrowers, according to a new study by the real estate analysis firm Core Logic.
More than one homeowner in seven with a mortgage in excess of $1 million is seriously delinquent, according to the study, which was produced for the New York Times. By contrast, only one borrower in 12 with a mortgage under $1 million is delinquent, the study found.
Though the study does not specifically address the reasons for the difference, it clearly suggests that wealthy homeowners may simply be more willing to write off their losses on a home that has declined steeply in value, same as they might a soured business venture. “The rich are different: they are more ruthless,” Sam Khater, CoreLogic’s senior economist, told the Times. “Those with high net worth have other resources to lean on if they get in trouble,” Khater said. “If they’re go Read more…