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An article in the Wall Street Journal today says that homes with loans over $5 million will likely see a spike in foreclosure sales this year.
It is hard for most people to imagine paying $5 million for a home, but there are several examples of millionaires in foreclosure in the article.
Mentioned prominently is actor Nicholas Cage. A Bel-Air home he owns that is said to be worth $35 million was returned to the lender after receiving no bids at a foreclosure auction in California Wednesday. The star declined to comment on the situation, according to the paper.
I guess if you don’t want a $35 million home and you can’t sell it, you might as well turn it back to the bank that loaned you the money to buy it.
A former top Wall Street executive has used bankruptcy to stop foreclosure on his 14-acre Westchester New York estate. Richard Fuscone, who once was head of Merrill Lynch’s Latin American operations, filed personal bankruptcy to stop the sale of his home at auction Thursday, according to the Journal.
Fuscone is quoted from his bankruptcy declaration as having been “personally devastated by the financial crisis.” Many across the country can understand this devastation as they continue to lose their homes to foreclosure.
