Nation wide foreclosure rights continue to climb. Roughly 11 million home owners remain underwater on their mortgages and are prime victims of future foreclosures to come. At least eight percent of those individuals are in serious trouble and will face foreclosure soon or are already in it. It is now clear that foreclosure is not isolated to specific areas of the country or class of individuals. It is affecting everyone, in nice and bad neighborhoods. Its affecting the rich and the poor. For example, in the high end neighborhoods of Florida, in Fisher Island and Rosemary Beach, there is a 20.5% foreclosure rate. About 38 out of 184 active loans are in default. So its not isolated to the lower classes or the poor. Rich people or people who thought they could afford expensive homes are feeling the downturn.
As a result of the foreclosures, everyone is seeing a huge depreciation in the value of their homes. As the home value go down, those who can afford to pay their payments are dealt with the reality that they are paying for a home that is worth less than its purchase price. Some elect to hang in there while others foreclose on their homes. For those walking away they see it as a smart financial decision.
