The Real Deal Miami

High-end home foreclosures on the rise

May 07, 2010 12:42PM

More high-end homes began entering foreclosure toward the end of 2009 and the trend has continued through the beginning of 2010, according to CNBC. In February, 4,169 homes valued at $1 million or higher were in the foreclosure process, according to RealtyTrac, marking a 121 percent increase over the number seen during the same month a year earlier. Real estate analyst Jack McCabe said the delayed foreclosure trend among high-end homes is due to the fact that wealthier homeowners were able to stave off financial troubles longer. “Lower-end homeowners were the first ones to see the escalating foreclosures because they generally do not have the cash reserves or credit available that the luxury homeowners do. They had the ability to take their credit cards and pull out thousands of dollars while the lower end buyers were already tapped out,” he said. [CNBC]