Yves Smith raises the question whether banks are afraid to foreclose on the rich? Her piece speaks for itself and I won't attempt to add to it, except--a payment of $20,000 a month? And "He knows of 20 people personally in his community who have mortgages of over $20,000 a month"--?
Of course I don't know the terms, but a payment of $20,000 a month on a 20-year fixed at five percent annual pencils out to a liability somewhere north of $3 million.
Her source also says that he knows a guy with such a mortgage who "has not made a single payment in over 18 months." At the same five percent rate, $20,000 a month for a year and a half gives a present value of $346k. Per the U.S. Census Bureau, the median sales price of a new home in the United States is somewhere a bit shy of $200k. So the arrearage alone here would be enough to pay for nearly two of them.
He lives in a fancier neighborhood than I do.
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