When we talk about foreclosures in the millions, we’re usually referring to the number of foreclosures in progress. This time, however, I’m referring to the millions of dollars owed on a loan. Foreclosures aren’t just hitting middle class Americans, they are also happening to people who most would consider wealthy.
I recently read an article about a foreclosure in our great state of Colorado, where a Breckenridge couple is finding they can’t keep up with the mortgage payments on their $2 million home. My office has handled bankruptcies for numerous homeowners who are behind on their mortgages and needing to file bankruptcy to catch up on arrears. We see loans that range in value from $100k to $400k on average. Rarely do we see anything that has enough zeros to hit the million dollar mark.
But according to the CNNMoney article mentioned above, foreclosures on homes valued over $2 million have increased by 273% since 2007. This clearly shows that tough times and a bad economy don’t discriminate. Loss of a job, and in the Breckenridge couple’s situation a failed business, can cause a downward spiral for anyone. Missing one payment on your mortgage can easily snowball into several.
If you have a multi-million dollar home, catching up on arrears in a bankruptcy may not be an option, or even very wise. But for many of us with manageable mortgages, it may be possible. My advice is to not let things go too far. If you’re behind on payments and find that you’re now back on your feet, but your mortgage company refuses to accept anything but a full catch-up, contact an attorney immediately. The longer you let the arrears pile up, the higher the monthly payment needed to catch-up. It can make the difference between being able to afford to keep the home and having to let it go.
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