The recession is taking a toll on everybody. That means each and every social class is affected. Some of the wealthiest of the wealthy do pay money for every little thing and carry really low debt loads. However, some wealthy people simply take out way bigger financial institution loans. Numerous people want the bigger house or nicer auto and take out debt for it. More large properties are getting foreclosed on as the wealthy cannot get the immediate cash needed to pay their mortgages. Loan modification is needed by even the prosperous.
Even those who are wealthy get hurt with the economic recession
There have been some high profile tumbles for some incredibly wealthy individuals. Even Nicholas cage with his $35 million mansion lost his property to a foreclosure. There is a new price to the home. It is $11.5 million. Millionaires don’t care about their credit score. It is bad to get into too much debt. At one time, individuals should be focused on only one encumbrance with low interest loans. The main difference in foreclosure sales may be a lot. The delinquent homeowner might even be sued by the bank for this. Homes were almost lost by people within the “Real Housewives” series. Three families almost lost the homes. Mortgage modification was needed by Jim and Alexis Bellino on the “Orange County” show. They defaulted on their mortgage.
Do not rich individuals have better money management?
According to ABC, the Los Angeles County area has exploded with foreclosures on incredibly costly properties. Just since April of this year, there has been a huge increase in foreclosures of properties over $1 million. It went up over 300 percent. Rich people aren’t all being careless with what they’re doing with their cash. It may even be the opposite of that. Many are just cutting their losses and walking away before knowing it hits them too hard.
Is real estate nevertheless a good investment?
More people want to know whether investing in real estate is a good idea or not. Many people lost a ton of cash when investing in homes. Years went by just to have the market tank on them.
Further reading
ABC News
abcnews.go.com/Business/luxury-foreclosures-hit-rich/story?id=11542560 and page=1
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