Whether or not you believe it, it is true that recessions hurt every social class. Some of the wealthiest of the wealthy do pay cash for everything and carry very low debt loads. There are some rich individuals that keep up the image by just getting huge loans from the financial institution. Numerous people want the bigger house or nicer automobile and take out debt for it. Foreclosures on large properties are increasing, as even the wealthy lack the instant cash to pay the mortgage. Rich individuals are in need of loan modification. It applies to everybody. Post resource – Even the wealthy need instant money sometimes by Personal Money Store.
Recession makes a difference to rich’s lives too
Numerous individuals with a lot of money have had high profile tumbles most recently. Just take a look at Nicolas Cage; he wound up losing more than one property, among them a $35 million mansion which was foreclosed. The home is listed for only $11.5 million. Granted, millionaires aren’t worried about their credit scores. It is bad to get into too much debt. At one time, people should be focused on only one encumbrance with low interest loans. Remember also that banks can sue delinquent homeowners for the difference in foreclosure sales. Homes were almost lost by people within the “Real Housewives” series. Three families almost lost the homes. Mortgage refinancing was needed by Jim and Alexis Bellino on the “Orange County” show. They defaulted on their mortgage.
An expectation on the rich to be better with money
A lot of Los Angeles County properties that are quite costly have been getting foreclosed. This comes from ABC. Just since April of this year, there has been a huge increase in foreclosures of properties over $1 million. It went up over 300 percent. However, it isn’t so much that rich individuals are careless with their cash. The opposite appears to be happening. It is surprising. Many are just cutting their losses and walking away before knowing it hits them too hard.
Should I invest in real estate?
More individuals want to know whether investing in real estate is a good idea or not. Many people lost a ton of money when investing in homes. Years went by just to have the market tank on them.
Further reading
ABC News
abcnews.go.com/Business/luxury-foreclosures-hit-rich/story?id=11542560 and page=1
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