The housing crisis, having wreaked havoc on low- and middle-income homeowners, is moving into the mansion set. Foreclosures on $1 million plus homes have almost doubled since last year, MSNBC reports, and more than doubled for homes over $2 million. The reasons are familiar: layoffs in the executive and professional ranks, coupled with huge mortgages, are causing high-end homeowners to miss payments and lose their titles.
The market is now cramped with pricey abandoned homes, particularly in tony communities in California and Florida, where properties are on offer for as little as half the valuation before foreclosure. And continued layoffs on Wall Street could bring the phenomenon to the Northeast. “It doesn't make sense,” said one owner, whose $3.8 million home will be lucky to fetch $1.4 million. (Read more foreclosures stories.)