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Foreclosure Beverly Hills Style
The Easy Way to Shop For a Mortgage Loan
Fill Out One Questionnare
Receive Multiple Offers. Save Money.
You're Now Reading:
Foreclosure Beverly Hills Style
The Easy Way to Shop For a Mortgage Loan
Fill Out One Questionnare
Receive Multiple Offers. Save Money.
The Easy Way to Shop For a Mortgage Loan
Fill Out One Questionnare
Receive Multiple Offers. Save Money.
You're Now Reading:
Foreclosure Beverly Hills Style
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Mortgage Rates
Home Buying Tips
Home Selling Tips
About Mortgages
Mortgage Calculator
Mortgage Rates

March 8, 2011 (Chris Moore)
mortgage-barbie-image
They come from all walks of life. From the guy next door, to celebrities, to even large prominent companies, strategic default is a growing option for more and more borrowers to take. The exact amount of strategic foreclosures is unknown but a recent study by the Federal Reserve Board showed that half of the home owners who walked away from their homes owed twice as much as it was worth. Throwing morals out the window, strategic default for some essentially becomes a business decision.

Strategic defaults are home owners whose home value has dropped so drastically the borrower decides to stop paying the mortgage and walk away from the property, even though they can afford to make the payments. With the current long timelines from the point of default until the point of foreclosure, many borrowers can stay in their homes for up to two years, without having to pay a cent!

And you think it’s just the working man? Oh no. In fact, delinquency rates with loans over $1 million are higher than rates for the average homeowner…one in seven compared to one in twelve. You may drive through Beverly Hills and see all those sleek European luxury cars, but behind those iron gates there are many who have leveraged their balance sheet to the hilt.

The local CBS news station chronicled the trials of a Los Angeles area resident who had purchased an ocean view townhome in 2006 for $1.385 million and after watching the value steadily drop to “less than $800,000, maybe less,” stopped paying on his mortgage.

“I haven’t made a payment in two years,” he says. “It was business decision. It was an easy decision. I have a property worth six or 700,000 less than when I bought it. I was making payments of 10,000 a month.”

“People like myself, business people, are thinking it is silly to throw good money after bad,” he added. “The loss is not mine. The loss is the banks.” Well not quite, it’s the taxpayer who pays in the end.

As of February 1st, the Multiple Listing Service (MLS) officially listed only four foreclosed homes for sale in the Beverly Hills area, yet there were 149 homes with default notices of which 107 had estimated mortgage balances of over $1 million. Almost makes you want to line up at the courthouse to get in on the great deals.

But it’s not just the rich Beverly Hills players who have been hit hard by the housing crisis, even Morgan Stanley walked away last year from a $1.5 billion mortgage on five buildings in San Francisco despite record-breaking profits in 2009. I wonder how big the bonus was for the guy who masterminded that purchase.

The stigma attached to strategic defaults always weakens during housing downturns. We saw it during the last housing downturn, but are seeing it far more this time around as the housing crisis is the most severe in 80 years.

Luigi Zingales, an economist and professor at the University of Chicago’s Booth School of Business says, “Once you think it’s socially acceptable, it becomes easier to do.”

Such is the life of the rich and maybe not so famous.

Next…foreclosures of the Housewives of Orange County. Let’s not go there.

Tags: strategic defaults, foreclosure, mortgage borrowers, home values, housing crisis

FILL OUT THE FORM
It all starts here. Select the loan product you want to apply for and complete the subsequent questionnaire.
WE VERIFY & TRANSMIT TO LENDERS
Once we receive your completed questionnaire we verify a couple vital pieces of information and direct your information to our network of lenders, all within minutes.
REVIEW YOUR OFFERS
With offers in hand you can now compare rates and costs and get the best possible deal. Comparison shopping made easy. You fill out one form and lenders compete for your business.
CHOOSE YOUR LENDER
Congratulations! With the great learning tools we provide for you at MortgageLoanRateUpdate and the offers you have received, you've found the right product and the best rate.
HOW
MORTGAGELOANRATEUPDATE
WORKS
Whether you're looking to refinance your current loan, purchasing a new home or looking for a home equity loan, we make it easy at Mortgageloanrateupdate. Our questionnaire is simple and quick to use and your information is safely transmitted to us with SSL encryption. With just two minutes of your time, you could have multiple lenders competing for your business which could save you thousands.
ADVANTAGES OF USING
MORTGAGELOANRATEUPDATE
FAST & EASY. DATA ENCRYPTED
Applying to multiple lenders is fast and easy with our one simple questionnaire. Choose the product you’re looking for, take a few moments to answer a few questions and you’re on your way to saving.
NO OBLIGATION. NO HIDDEN FEES
Any of the services on our website are 100% free, there is no obligation to use our services or any hidden fees. We’re not loan brokers so we don’t charge broker fees like other websites.
NO SSN OR CREDIT CHECK
No SSN or credit check is necessary to use our services. We bring lenders to you so they can compete for your business and you save. That information only becomes necessary after you choose a lender.
Home Buying
Tips
Home Selling
Tips
About
Mortgages
Mortgage
Calculator
Mortgage
Rates

March 8, 2011 (Chris Moore)
mortgage-barbie-image
They come from all walks of life. From the guy next door, to celebrities, to even large prominent companies, strategic default is a growing option for more and more borrowers to take. The exact amount of strategic foreclosures is unknown but a recent study by the Federal Reserve Board showed that half of the home owners who walked away from their homes owed twice as much as it was worth. Throwing morals out the window, strategic default for some essentially becomes a business decision.

Strategic defaults are home owners whose home value has dropped so drastically the borrower decides to stop paying the mortgage and walk away from the property, even though they can afford to make the payments. With the current long timelines from the point of default until the point of foreclosure, many borrowers can stay in their homes for up to two years, without having to pay a cent!

And you think it’s just the working man? Oh no. In fact, delinquency rates with loans over $1 million are higher than rates for the average homeowner…one in seven compared to one in twelve. You may drive through Beverly Hills and see all those sleek European luxury cars, but behind those iron gates there are many who have leveraged their balance sheet to the hilt.

The local CBS news station chronicled the trials of a Los Angeles area resident who had purchased an ocean view townhome in 2006 for $1.385 million and after watching the value steadily drop to “less than $800,000, maybe less,” stopped paying on his mortgage.

“I haven’t made a payment in two years,” he says. “It was business decision. It was an easy decision. I have a property worth six or 700,000 less than when I bought it. I was making payments of 10,000 a month.”

“People like myself, business people, are thinking it is silly to throw good money after bad,” he added. “The loss is not mine. The loss is the banks.” Well not quite, it’s the taxpayer who pays in the end.

As of February 1st, the Multiple Listing Service (MLS) officially listed only four foreclosed homes for sale in the Beverly Hills area, yet there were 149 homes with default notices of which 107 had estimated mortgage balances of over $1 million. Almost makes you want to line up at the courthouse to get in on the great deals.

But it’s not just the rich Beverly Hills players who have been hit hard by the housing crisis, even Morgan Stanley walked away last year from a $1.5 billion mortgage on five buildings in San Francisco despite record-breaking profits in 2009. I wonder how big the bonus was for the guy who masterminded that purchase.

The stigma attached to strategic defaults always weakens during housing downturns. We saw it during the last housing downturn, but are seeing it far more this time around as the housing crisis is the most severe in 80 years.

Luigi Zingales, an economist and professor at the University of Chicago’s Booth School of Business says, “Once you think it’s socially acceptable, it becomes easier to do.”

Such is the life of the rich and maybe not so famous.

Next…foreclosures of the Housewives of Orange County. Let’s not go there.

Tags: strategic defaults, foreclosure, mortgage borrowers, home values, housing crisis

FILL OUT THE FORM
It all starts here. Select the loan product you want to apply for and complete the subsequent questionnaire.
WE VERIFY & TRANSMIT TO LENDERS
Once we receive your completed questionnaire we verify a couple vital pieces of information and direct your information to our network of lenders, all within minutes.
REVIEW YOUR OFFERS
With offers in hand you can now compare rates and costs and get the best possible deal. Comparison shopping made easy. You fill out one form and lenders compete for your business.
CHOOSE YOUR LENDER
Congratulations! With the great learning tools we provide for you at LoanRateUpdate and the offers you have received, you've found the right product and the best rate.
HOW
MORTGAGELOANRATEUPDATE
WORKS
Whether you're looking to refinance your current loan, purchasing a new home or looking for a home equity loan, we make it easy at MortgageLoanRateUpdate. Our questionnaire is simple and quick to use and your information is safely transmitted to us with SSL encryption. With just two minutes of your time, you could have multiple lenders competing for your business which could save you thousands.
ADVANTAGES OF USING
MORTGAGELOANRATEUPDATE
FAST & EASY. DATA ENCRYPTED
Applying to multiple lenders is fast and easy with our one simple questionnaire. Choose the product you’re looking for, take a few moments to answer a few questions and you’re on your way to saving.
NO OBLIGATION. NO HIDDEN FEES
Any of the services on our website are 100% free, there is no obligation to use our services or any hidden fees. We’re not loan brokers so we don’t charge broker fees like other websites.
NO SSN OR CREDIT CHECK
No SSN or credit check is necessary to use our services. We bring lenders to you so they can compete for your business and you save. That information only becomes necessary after you choose a lender.

March 8, 2011 (Chris Moore)
mortgage-barbie-image
They come from all walks of life. From the guy next door, to celebrities, to even large prominent companies, strategic default is a growing option for more and more borrowers to take. The exact amount of strategic foreclosures is unknown but a recent study by the Federal Reserve Board showed that half of the home owners who walked away from their homes owed twice as much as it was worth. Throwing morals out the window, strategic default for some essentially becomes a business decision.

Strategic defaults are home owners whose home value has dropped so drastically the borrower decides to stop paying the mortgage and walk away from the property, even though they can afford to make the payments. With the current long timelines from the point of default until the point of foreclosure, many borrowers can stay in their homes for up to two years, without having to pay a cent!

And you think it’s just the working man? Oh no. In fact, delinquency rates with loans over $1 million are higher than rates for the average homeowner…one in seven compared to one in twelve. You may drive through Beverly Hills and see all those sleek European luxury cars, but behind those iron gates there are many who have leveraged their balance sheet to the hilt.

The local CBS news station chronicled the trials of a Los Angeles area resident who had purchased an ocean view townhome in 2006 for $1.385 million and after watching the value steadily drop to “less than $800,000, maybe less,” stopped paying on his mortgage.

“I haven’t made a payment in two years,” he says. “It was business decision. It was an easy decision. I have a property worth six or 700,000 less than when I bought it. I was making payments of 10,000 a month.”

“People like myself, business people, are thinking it is silly to throw good money after bad,” he added. “The loss is not mine. The loss is the banks.” Well not quite, it’s the taxpayer who pays in the end.

As of February 1st, the Multiple Listing Service (MLS) officially listed only four foreclosed homes for sale in the Beverly Hills area, yet there were 149 homes with default notices of which 107 had estimated mortgage balances of over $1 million. Almost makes you want to line up at the courthouse to get in on the great deals.

But it’s not just the rich Beverly Hills players who have been hit hard by the housing crisis, even Morgan Stanley walked away last year from a $1.5 billion mortgage on five buildings in San Francisco despite record-breaking profits in 2009. I wonder how big the bonus was for the guy who masterminded that purchase.

The stigma attached to strategic defaults always weakens during housing downturns. We saw it during the last housing downturn, but are seeing it far more this time around as the housing crisis is the most severe in 80 years.

Luigi Zingales, an economist and professor at the University of Chicago’s Booth School of Business says, “Once you think it’s socially acceptable, it becomes easier to do.”

Such is the life of the rich and maybe not so famous.

Next…foreclosures of the Housewives of Orange County. Let’s not go there.

Tags: strategic defaults, foreclosure, mortgage borrowers, home values, housing crisis

Home Buying Tips
Home Selling Tips
About
Mortgages
HOW
MORTGAGELOANRATEUPDATE
WORKS
FILL OUT THE FORM
It all starts here. Select the loan product you want to apply for and complete the subsequent questionnaire.
WE VERIFY & TRANSMIT TO LENDERS
Once we receive your completed questionnaire we verify a couple vital pieces of information and direct your information to our network of lenders, all within minutes.
REVIEW YOUR OFFERS
With offers in hand you can now compare rates and costs and get the best possible deal. Comparison shopping made easy. You fill out one form and lenders compete for your business.
CHOOSE YOUR LENDER
Congratulations! With the great learning tools we provide for you at MortgageLoanRateUpdate and the offers you have received, you've found the right product and the best rate.
ADVANTAGES OF USING
MORTGAGELOANRATEUPDATE
FAST & EASY. DATA ENCRYPTED
Applying to multiple lenders is fast and easy with our one simple questionnaire. Choose the product you’re looking for, take a few moments to answer a few questions and you’re on your way to saving.
NO OBLIGATION. NO HIDDEN FEES
Any of the services on our website are 100% free, there is no obligation to use our services or any hidden fees. We’re not loan brokers so we don’t charge broker fees like other websites.
NO SSN OR CREDIT
CHECK
No SSN or credit check is necessary to use our services. We bring lenders to you so they can compete for your business and you save. That information only becomes necessary after you choose a lender.