Million dollar homes are beginning to feel the sting of the foreclosure crisis. According to a recent report the number of million dollar homes hit with foreclosure has jumped 24 percent since last year. And while homeowners in lower-priced homes (under $250,000) are still the primary victims of foreclosure, the numbers higher-end homeowners facing foreclosure in Dallas-Fort Worth are on the rise. One of the reasons for the rise in foreclosures amongst expensive homes is that during the real estate boom many "lower" income individuals who would not ordinarily qualify to purchase a home over $500,000 were suddenly able to "qualify" for million dollar homes making them more vulnerable to foreclosure than their well-off neighbors.
Remember a few years back when the short order cook earning minimum wage was facing foreclosure because he somehow qualified for a $500,000 mortgage? Well many of the foreclosures taking place in the high-priced homes are due to similar situations where people were placed in ill-appropriate mortgages. That's not to say that all of those foreclosures are the result of homeowners matched with bad loans. Even amongst the higher income families, a job loss or business failure can cause foreclosure. Unfortunately for higher income individuals, remaining in a state of denial can be one of the main reasons they succumb to foreclosure without at least considering their bankruptcy options. Even for high income individuals, bankruptcy offers a slew of tools that protect debtor assets while keeping creditors at bay.
Many high income debtors can use bankruptcy to avoid foreclosure, keep their home and protect other assets such as retirement plans.