Foreclosures of million-dollar homes increase in SF Bay Area

[Newsjock]

http://www.mercurynews.com/bay-area-news/ci_19899224

The housing crisis, which first devastated borrowers who purchased lower-cost homes with subprime loans, has caught up with people whose wealth helped them hang onto their houses longer.

Throughout affluent communities in the Bay Area, million-dollar-and-up homes are increasingly being lost to foreclosure, or sold as a last resort for far less than their mortgages.

More than 1,500 Bay Area homes with mortgages of $1 million or more were scheduled for auction last year, more than double the number in 2008, according to ForeclosureRadar, a foreclosure tracking service.

... "About a year and half ago, we started receiving listings of foreclosures from Blackhawk. Prior to that, it was unheard of," said Bryce Ellsworth of Windermere Ellsworth & Associates of Brentwood. "I sold a home in Blackhawk last year, on three-quarters of an acre, a beautiful pool and backyard and nicely done kitchen. It was $4 million on the previous sale. This time it sold for $1 million cash."

[Hassin Bin Sober]

1. I blame Barney Frank.

To jury:

[BlueToTheBone]

2. In 2004, houses in the Bay area

were sold to highest bidder. Houses were being sold for 5x what they were worth. It amazed me to see prices. My beloved had a piece of property and sold it around that time for 4x what he paid for it! Amazing! We sold it because of the water problems (disclosed) but they were thrilled.

[pscot]

3. A million is a starter home

in the Bay area.

[xfundy]

4. No matter how bad things get

there's always an opportunity for the rich to buy and profit when the market comes back... until they decide to crash it again, rinse, repeat.

[L0oniX]

5. I ain't going to cry over that.

What do I have in common with people who buy million dollar homes? Nothing! IMO if they got caught with their pants down it's their own fault. Did any of them think they were going to keep that high paying job for 20 years? If they did then they were idiots ...apparently rich idiots.

[JVS]

6. People don't get into the position of being able to buy a $4,000,000 home without knowing to cut...

their losses when the value goes down to $1,000,000