Tuesday, February 1, 2011

The rich are suffering too...

In a recession, it is not just the little people who suffer.....

For Darren Thomas that ocean view was quickly losing its value. He says, "I bought it for [$1.385 million]. It is worth less than [$800,000], maybe less."

Thomas bought his townhome in 2006 but after seeing its value drop steadily he stopped paying.

"I haven't made a payment in two years," he says. "It was business decision. It was an easy decision. I have a property worth six or 700,000 less than when I bought it. I was making payments of 10,000 a month."

Thomas has gone into strategic default. He could make payments but is refusing to put more money into a home that is worth less than his mortgage. Among luxury homeowners he is not alone

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