Forbes reports that about 7.7 percent of all mortgage holders across the country are either seriously delinquent on their monthly payments or already struggling through the foreclosure process.
This news isn’t surprising to anyone who’s followed the housing market since the residential real estate boom started to fizzle. What might be surprising to some, however, is whom foreclosure is affecting. There are plenty of supposedly wealthy neighborhoods throughout Florida. Some might be surprised to learn that many of these upper-end communities are dotted with homeowners going through the foreclosure process.
Foreclosure filings and delinquent mortgage payments aren’t rare in so-called rich neighborhoods. Forbes reports that even Florida’s exclusive Fisher Island neighborhood has a foreclosure rate of 20.5 percent. According to the numbers, 38 out of 184 active mortgage loans in that neighborhood are in default. This means that Fisher Island ranks first among the wealthiest neighborhoods in the United States when it comes to foreclosures.
Also ranking high on Forbes’ list is the Florida neighborhood of Rosemary Beach. This neighborhood, with a foreclosure rate of 9.9 percent, ranks third among the country’s priciest neighborhoods. Here, 10 out of 104 active mortgage loans are in default.
The high number of foreclosures has brought additional trouble to these and other wealthy neighborhoods across the country. When neighborhoods see a high number of housing foreclosures, they also generally see the price of all homes start to fall. Buyers won’t pay $1 million for a home when they can buy a foreclosed property three doors down for $700,000.
A troubled economy and real estate market ultimately affect all Americans, no matter how much they earn or where they live. We are all in this time of hardship together and need to work together to come out stronger than ever.
Forbes: “Rich Neighborhoods Riddled With Foreclosures,” Morgan Brennan, Nov. 14, 2011