Luxury Foreclosures on the Rise

Homes valued at more than $1 million represent the fastest growing segment of the U.S. foreclosure market. According to an article by Jerold Leslie at The Street (available on Yahoo!), such high-end homes represent a fairly small portion of the whole U.S. foreclosure problem (just 2.3% in the first 10 months of 2010). However, that amount is a 335% increase since 2007.

According to Daren Blomquist at RealtyTrac.com:

“No matter how wealthy you are, there’s always that potential that you’ll lose your job,” he said. “Even if you have a very high income, you’re always susceptible to not being able to make your mortgage payments.”

He’s exactly right.  In this economy, it’s difficult to replace that level of income once it’s lost.  But as the article goes on to say, luxury foreclosures offer huge discounts for buyers.

The highest-priced foreclosure, according to Yahoo! Real Estate, is this oceanfront gem in Laguna Beach, California.  And it could be yours for only $19,950,000!

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