Is this a sign of things to come?
The report states "[f]oreclosures of homes worth over $1 million began increasing at the end of 2009, according to RealtyTrac. Foreclosures reached a high in February 2010...[t]hat’s a 121 percent increase from a year ago." The report is based on a survey of high end properties nationwide. High end properties are defined as properties valued over $1,000,000.
This trend is in contrast to the stabilization of foreclosure among low and mid priced properties. When the debt crisis began, it was these properties that experienced high foreclosure rates will luxury properties were stable.
It also appears that lenders are prepared to do more to prevent foreclosure by accepting a short sale transaction or renegotiating the loan. The cost to hold and maintain high end properties is very high for lenders.
Our firm has seen a rise in foreclosure in the Manhattan and Brooklyn high end market. We understand that effective strategies are needed to prevent foreclosure.
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