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Monday, March 9, 2015

Bigger Mortgages Likelier to Go Into Foreclosure

Although CoreLogic data shows that the nation's foreclosure rate dipped to 1.4 percent at the end of last year -- the lowest level since March 2008 -- inflated foreclosure rates persist at the high end of the market. The foreclosure rate for mortgages of $750,000 or more hit 2.5 percent in December -- an anomaly that has come to characterize the 2008 crash and its aftermath, according to CoreLogic deputy chief economist Sam Khater. The report shows that the foreclosure rate for mortgages of $750,000 or more was 0.1 percent in January 2006, versus an overall rate of 0.5 percent. However, by the end of 2008's first quarter, the high-end foreclosure rate was up to 1.5 percent, compared to 1.4 percent overall, and it eventually topped 6.8 percent in May 2012. While foreclosure rates have steadily declined since then, the upper end of the housing market continues to see higher foreclosure levels, thanks in part to a stock market crash that accompanied the housing meltdown. Additionally, several states with significant stocks of luxury housing have some of the highest foreclosure rates in the nation.

From "Bigger Mortgages Likelier to Go Into Foreclosure"
Wall Street Journal (03/06/15) Bonislawski, Adam

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