[Newsbot]

Title: Walking Away From Million-Dollar Mortgages
Category: Business
Posted By: Scape
Date: 2010-07-09 06:34:17

[Dragom]

"“They may be less susceptible to the shame and fear-mongering used by the government and the mortgage banking industry to keep underwater homeowners from acting in their financial best interest,” Mr. White said."

Ya what he said.

[Khar]

From what I've read of the article, they are defining the rich as "people with a mortgage of over a million dollars." However, during the past couple of months the reports coming in have indicated a massive amount of people who are getting these houses actually couldn't afford them anyways.

While I have no doubt that the rich have less predilection to sway easily, I do question the term "rich" as it is used in the context of this article in all honesty. I also question this report considering many of the less expensive housing had already dipped drastically, meaning the group with the higher mortgages aren't more willing to get rid of their homes overall, it just means that they held onto them longer than the years of seeing lower income housing take front and center stage, before deciding that they could probably take any ramifications which come to their doorstep by dumping their mortgages now. Plus, by this point, those who still have houses and are losing them have seen Freddie Mac, Fannie Mae and other regulatory groups in the States shell out tons of money -- nothing is too good or too bad to bail out, often higher than the limits required. The ease of which you can dump houses no doubt eases the process a bit for people looking to lose a mortgage.

EDIT: That was a horrible set of typos.

[Zipperfish]

$1:

“The rich are different: they are more ruthless,” said Sam Khater, CoreLogic’s senior economist.

That's the trait I'm missing. Oh, and ambition. PLus I'm lazy.

[Dragom]

Theres lots of stuff that makes poor people believe that makes them poor. Things like "There are more important things then money" and "Money can't buy you happiness" and similar cliches that conspire to ensure you stay where your told.