Foreclosure Crisis Extends to Wealthy Areas

Associated Press
Published: July 14, 2008

BIRMINGHAM, Ala. (AP) - After more than a year of plaguing more
modest neighborhoods the foreclosure crisis is starting to spread
into more affluent areas.
Lawyers and real estate agents say they have noticed an
increasing number of owners of homes valued at $500,000 defaulting
on their mortgages. They say that’s a sign the tanking economy and
credit crisis are starting to hit wealthier households.
Experts have said problems in middle-class and lower-income
areas were primarily a product of unsophisticated buyers and risky
loans. But that’s not usually the case in more affluent areas.
Experts say high-dollar home owners may have been caught off
guard by adjustable rate mortgages. Another factor could be the
loss of jobs or reduced income caused by the struggling economy.