The CoreLogic data suggest that the rich do not seem to have concerns about the civic good uppermost in their mind, especially when it comes to investment and second homes. Nor do they appear to be particularly worried about being sued by their lender or frozen out of future loans by Fannie Mae, possible consequences of default.
Wait, you mean to tell me that the rich don’t give a fuck about the civic good? That they really only care about making more mony for themselves and are willing to fuck anyone that gets in their way? I’m shocked!
I particularly like this guy:
His five-bedroom house, drained of hundreds of thousands of dollars of equity over the last 13 years, is scheduled for auction July 20. Nine months ago, after his latest business (he has had several) failed in what he called “the global meltdown,” the man, a technology entrepreneur, said he quit making his $9,000 monthly payments.
Think about that for a second, nine-thousand dollars. A month. My (admittedly modest) apartment doesn’t cost much more than that for a year. This guy was spending as much in a year, as some people spend in twenty to cover their mortgage.
But by far the most interesting statistics are these:
More than one in seven homeowners with loans in excess of a million dollars is 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.
The delinquency rate on investment homes where the original mortgage was more than $1 million is now 23 percent. For cheaper investment homes, it is about 10 percent.
What does this really mean? It means that the poor and the middle class are actually trying to cover their debts, even if it isn’t necessarily in their best interests, the rich on the other hand, have no such qualms.
I’ll close with this piece, which best sums up the situation:
“Those with high net worth have other resources to lean on if they get in trouble,” said Mr. Khater, the analyst. “If they’re going delinquent faster than anyone else, that tells me they are doing so willingly.”
Or, in other words: Fuck you, I got mine.