Luxury Home Foreclosures Take Six Months Longer Than Cheapest Homes
If it's good to be king, it's not bad to be rich, especially when faced with foreclosure.
Borrowers in default with loans worth $1 million or more are able to stay in their homes for an average of about six months longer than defaulting borrowers with loans that are less than $250,000, according to data from Lending Processing Services analyzed by the Wall Street Journal. One of the biggest reasons for the time gap: smaller mortgages are more likely to be packaged and sold into securities backed by Fannie and Freddie, which have strict foreclosure timelines.
The discrepancy once again highlights how the rules differ for those at the top of the housing market.