Business

Home Foreclosures Hit Rich Too

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From Reuters:

With a pretty red-brick downtown lined with stores, good schools and a railway line to nearby Chicago, Hinsdale has been popular among wealthy doctors, lawyers and executives.

It has also seen a 37 percent jump in foreclosure filings this year, according to research firm RealtyTrac, and local data shows the average home sale price has fallen to $1.07 million from $1.15 million in September 2007.

The consequences of years of devil-may-care mortgage lending during the U.S. housing boom were first felt among America’s poorer home owners. But if that is where it started, it did not stop there.

“People think this is just a lower-income problem,” said Mabel Guzmann, a Century 21 realtor in Chicago. “It’s not.”

And let’s be clear here…it takes a lot more of the subprime foreclosures to equal just 1 of these higher income foreclosures. So when areas like this are seeing a 37% spike in foreclosures, I hope we can all agree that people from all walks of life have acted irresponsibly too.