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The Lap of Luxury, or The Lack Thereof?

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By : Andy Denton    99 or more times read
So who else are on the brink of losing their homes? You can add the high society to the growing list.

A new report from the Wall Street Journal states that “In February alone, 352 homes nationwide in this category were scheduled for foreclosure auction, the final step before a bank acquisition. That is the largest monthly number of these so-called notices of sale since the financial crisis began. By comparison, in all of 2009, there were 1,312 such notices. Economists say the super-wealthy are among the last to lose their homes in a mortgage crisis because they usually have high savings, better access to credit and other means for staving off foreclosure. But many of them work in financial services and other industries hit especially hard by the crisis, and have seen their wealth shrink in the market crash.”

Well who would have thought that Nicolas Cage can come to the point of selling his 14-acre Winchester mansion in Bel-Air in Los Angeles. When it was up for auction, no one wanted to take it for $10.4 million, way less than the projected $35 million that the actor tried to sell his house for. In the end, it unsold. Poor Nick, he needs a string of blockbusters this time if the property remains in his assets. If you’re wondering why such house that has gotten much attention from the press before the auction didn’t spur interest among buyers, it’s because of one problem that the agent is attributing to. Brent Parsons tells to the Los Angeles Times , “The design was ‘frat house bordello. There must have been 300 comic book covers elaborately framed and hanging on the walls.”

If that doesn’t creep you up then the LAT has this to add: “Model train sets on raised tracks a couple feet below the ceiling circled the inside of the breakfast room and two bedrooms. There were also no takers in the courthouse sale, and in less than a minute the auction closed, with ownership reverting to the foreclosing lender—just one of six holding a total of $18 million in loans on the property.”

I wouldn’t bid on it either unless if I had been a fan of the Addams Family.

Other megamansions in danger of not finding a buyer according to the WSJ report include a “4,655-square-foot home in Sunset Islands; a 8,443-square-foot house in Coral Gables; and a condo in Miami Beach, according to Peter Zalewski, a principal of Condo Vultures. All three had mortgages of $3.5 million to $4 million.”

The property slump continues to haunt even the rich. The assumption that they are the last group to be hit by foreclosure because they’ve got more savings doesn’t hold true at all. In fact, I believe they’re taking more risks with their money and they’re a lot less careful when they’re betting on real estate.
Andy Denton is the COO of is a real estate search portal, dedicated to connecting home buyers and sellers to trusting real estate services. Follow the blog for up to date housing news and trends. And monitor local mortgage rates at

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