NYT Says the Rich are the Biggest Defaulters

If you haven’t seen this article from the New York Times, I suggest you read it. It’s not really an eye opener in terms of the statistics. In fact, I have quite a few audit clients who are wealthy and are considering walking away. Paradise Valley, which is down the street from my office, used to be the most exclusive (read: expensive) neighborhood in America, is now nicknamed “Foreclosure Valley” because of all the foreclosures there.

There’s a quote in the article that says: “The rich are different: they are more ruthless,” said Sam Khater, CoreLogic’s senior economist.

The NYT’s article’s spin on the information was interesting to me. It seems to me like homeowners are all painted with the same deadbeat title, unless they’re RICH and RUTHLESS.

I don’t hate rich people – I want to be more like them, personally!

A lot of people who were wealthy took a big economic hit in the recent downturn just like everyone else. They were different in that they had enough resources to withstand the economic downturn better than other segments of the population.

I think the rich make better decisions because they make them based on factors other than emotion. Many of these people are business owners and didn’t become successful by making bad decisions.

I think the big take away from this article, at least for me, was that the rich aren’t buying the bank’s “moral obligation” PR campaign. They don’t have to – they have other options. If we take a page from their strategy, we all have more options than we realize, no matter what income bracket we’re in.

I’m not suggesting that people should strategically default — I’m more of an advocate of doing what makes the most sense if your situation. It’s up to you to make that decision for yourself. However, this article is a good indicator of what’s coming when people think for themselves and make the decision to walk away from their homes.

Got questions? Send me an e-mail: Christine@desertedgelegal.com

DISCLAIMER:

****CHRISTINE SPRINGER IS NOT A LICENSED ATTORNEY. THIS BLOG IS COMPRISED OF HER OPINIONS, OBSERVATIONS AND INTERPRETATIONS AND IS NOT INTENDED TO BE CONSTRUED AS LEGAL ADVICE. PLEASE CONSULT WITH AN ATTORNEY BEFORE RELYING ON OR TAKING ANY ACTION BASED ON THE INFORMATION IN THIS BLOG.****

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