Entries
Copyright © 2012 by the first tuesday Journal Online - firsttuesdayjournal.com;
P.O. Box 5707, Riverside, CA 92517
Readers are encouraged to reproduce and/or distribute this article.
Readers do not have to request permission to reprint items, however all reprinted items must bear the following attribution: Reprinted from the first tuesday Journal Online — firsttuesdayjournal.com P.O. Box 5707, Riverside, CA 92517
Defaults increase in high-end ZIP codes
By ft Editorial Staff • Nov 12th, 2009 • Category: real estate newsflash
loading...
Notices of default (NOD) are up for high-end real estate compared to 2008 levels. By the same comparison, the rate of delinquency, while high, continues to decrease for homeowners in lower priced real estate. Unlike homes in the low end, a disproportionate number of homeowners acquired high-priced homes using adjustable rate mortgages (ARMs). Thus, a wave of foreclosures is still to come as the nontraditional mortgage products used to purchase expensive homes are due to reset between 2011 and 2012.
ft take: As ARMs reset, homeowners will face the full consequences of the mortgages they’ve taken out. Next, high-priced neighborhoods will experience the increased pace of defaults and foreclosures. The rate of high-tier homeowners shouldering negative equity will climb in tandem with the increases in defaults and foreclosures. In the aftermath of the widespread price correction in real estate’s upper tier, look for a return to square foot pricing (our prediction from February of 2009) as the main means for setting value in the high-end properties since comparables cannot be found in most places. [For information regarding square foot pricing, see the February 2009 first tuesday article, The Return of Square Foot Pricing.]
Re: “Default notices rising in upper echelon ZIPs” from the San Francisco Chronicle
loading...
Copyright © 2012 by the first tuesday Journal Online - firsttuesdayjournal.com;
P.O. Box 5707, Riverside, CA 92517
Readers are encouraged to reproduce and/or distribute this article.
Copyright © 2012 by first tuesday Realty Publications, Inc. Readers are encouraged to reprint or distribute this information with credit given to the first tuesday Journal Online — P.O. Box 5707, Riverside, CA 92517.
ft Editorial Staff is the writing staff comprised of legal editor Fred Crane and writer-editors Connor P. Wallmark, Giang Hoang-Burdette, Bradley Markano, Jeffery Marino, Mary Balash, Carrie B. Reyes and Sarah Cantino.
Email this author | All posts by ft Editorial Staff
