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The poor are being blames, but the rich are walking away too?

Whether it is their residence, a second home or a house bought as an investment, the rich have stopped paying the mortgage at a rate that greatly exceeds the rest of the population.

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.

http://www.nytimes.com/2010/07/09/business/economy/09rich.html?_r=1

 
sweet-a-kins

Asked by sweet-a-kins at 9:54 PM on Jul. 9, 2010 in Politics & Current Events

Level 34 (67,502 Credits)
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Answers (19)
  • Poor people, and people of modest incomes, live in fear of being homeless. If they have the money, and they are moderately responsible, they will pay, because they know there very well might come a time when they can't pay, and they need all the good graces of the powers that be when that time comes.

    I can't explain why the rich don't pay. I'll let you know when I get there.

    lovinangels

    Answer by lovinangels at 12:33 AM on Jul. 10, 2010

  • Capitalism is a wonderful process only when people live within in their means. Unfortunately, many people in our country started living a false reality. They bought homes with mortgages that were phoney based on fudged numbers. People rob Peter to pay Paul all in hopes of keeping up with the Jones. You can not make 80, 000/year, have 2 kids, 2 new brand new foreign imports, take extravagant vacations, shop high stores, have weekly mani/pedis, join the country club and buy a home worth 500,000, with 20 percent down and expect to have reasonable cash flow-unless someone or something is subsidizing your life style. Living in a capitalistic society does not mean you can have anything you want at any given time.

    Too many, from businesses, individuals and governments (state and fed) have been existing on smoke/mirrors financing for far too long. It's over.
    Sisteract

    Answer by Sisteract at 12:49 AM on Jul. 10, 2010

  • A person isn't rich just because they appear to be. I know a shocking number of people many would consider rich that live paycheck to paycheck. Living beyond your means knows no class.

    I take issue with a pp assertion that the rich are rich because they are "reaping off the poorness of the poor." That is so untrue. I am a business owner and some would consider me rich because of the gross amount of income we take in. I don't end up with that much. I do provide good paying jobs and I pay a signicant amount in taxes each year.

    The demonizing of those with money by liberals only serves to hurt the people they say they want to help. It is riduculous.
    yourspecialkid

    Answer by yourspecialkid at 10:42 PM on Jul. 9, 2010

  • I heard a discussion on this on the radio. They are "investment homes" and vacation homes. People are letting them go less because they can't afford it and more because they are not a good investment anymore. And since it's not the roof over their head it is not as important as a person losing their one and only house.
    stacymomof2

    Answer by stacymomof2 at 10:37 AM on Jul. 10, 2010

  • . They are "investment homes" and vacation homes. People are letting them go less because they can't afford it and more because they are not a good investment anymore.

    Last time I was in to pay property taxes, there was a woman in line in front of me asking about how soon before each of their apartment buildings would be put up for tax sale. They couldn't afford the property taxes because of multiple tenants who had been laid off and stopped paying rent. This woman was not "rich", her clothes were from WalMart. I know other people who had rental properties that were gutted by people who lost their jobs and took it out on the landlords who had the nerve to evict them for not paying rent for 3+ months. Nobody is safe from losing their income, not even people you love to hate because they started out with a higher bank balance.
    NotPanicking

    Answer by NotPanicking at 2:40 PM on Jul. 10, 2010

  • And do not forget the Corporations that have walked away from commercial properties.


    Sisteract

    Answer by Sisteract at 9:57 PM on Jul. 9, 2010

  • Pointing the finger and placing blame is not only pointless but a waste of time. Why look back at something that has already happened when what needs to be done is find a solution to the problem. For the sake of the future of the country, we have to look for solutions. Not continue to place blame. It's worthless and accomplishes nothing!
    lawmom27

    Answer by lawmom27 at 11:33 PM on Jul. 9, 2010

  • Don't know and don't really care BUT Just because the government has someone down as having wealth over a million dollars does not mean they can afford to live like they do.
    itsmesteph11

    Answer by itsmesteph11 at 8:24 AM on Jul. 10, 2010

  • I can see people walking away from a second property or an investment property much faster than their actual home, because they don't really need it to live in.

    I also think, if it's anything like the people we know, many of these people bought huge homes with little down (just the like "poor" did) and a small drop in their incomes have left them struggling with their payments. In other words, they are not really rich, they were just borrowing enough to LOOK rich. There is a big difference that many people don't seem to get. Looking rich and being rich are not the same thing. Most truly rich people, in my limited experience, don't LOOK rich at all.
    Bezu

    Answer by Bezu at 9:47 AM on Jul. 10, 2010

  • sweet-a-kins

    Comment by sweet-a-kins (original poster) at 9:55 PM on Jul. 9, 2010

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