The Rich are More Likely to Default on Mortgages

Recent research shows that 1 in 7 American with home loans of more than $1,000,000 have missed 3 consecutive mortgage payments. According to marketplace.org only 1 in 12 of home owners with loans less than $1,000,000 are in seriously deliquent.

Large mortgages, called Jumbo loans, often carry a higher interest rate than a conventional loan. Some homeowners with these loans may view thier homes as bad investments and prefer to walk away from the homes instead of paying the mortgage. The research shows that the pressures of the economic downturn are impacting people across the entire economic spectrum. Every mortgage lender and financing institution will tell you that as soon as you think you are having trouble paying your mortgage you should contact your lender immediately and find out about loan modification programs and assistance to help you avoid foreclosure.

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