Lots of people in America have lately found themselves unable to pay their mortgages. Approximately 1% of the loans in foreclosure in America are for more than $1 million. For that (relatively) fortunate—let's just call them, I don't know, the 1%—it takes a lot longer to get kicked the hell out. The WSJ reports:
Nationally, borrowers with loans of at least $1 million were in default for an average 792 days last year before banks repossessed their homes, according to an analysis by data provider Lender Processing Services. For loans under $250,000, the wait stood at an average 611 days-a difference of about six months.
Notably, this gap only came into existence after the collapse of the economy in 2008. There are lots of reasons—the level of hassle for banks, the lower likelihood that high-end loans have been bundled for investors, the propensity of wealthier people to hire lawyers. It seems that here in America, the richest "1%" is afforded significant benefits not afforded to the "99%" of the rest of us. Somebody should write that down.
Good story, WSJ reporters Shelly Banjo and Nick Timiraos!
[WSJ. Photo: AP]