An increasing number of luxury homes are entering the foreclosure market and according to official data, 335 percent more properties prices at $1 million and above were foreclosed in 2010 compared to 2007.
During the current tough economy, more high-end homes are entering foreclosure. In 2007, million-dollar foreclosed homes for sale only accounted for 1.2 percent of the entire foreclosure market whereas in 2010, that number rose to 2.3 percent.
Job loss and cutbacks have made it increasingly difficult for even wealthy people to maintain their mortgage payments and reports are indicating that some rich people are ceasing to pay their mortgages because the property value of their home has dropped below the unpaid balance on the mortgage. In these cases of negative equity, many are finding it makes more sense to just walk away from their home. The good news is for buyers – when million-dollar properties are foreclosed, it means buyers have the opportunity to purchase high-end homes are low rates.
Overall, however, RealtyTrac notes that the overall number of foreclosures across 178 American cities dropped in the first six months of 2011 compared to the same period in the previous year. The government is looking at rental plans for foreclosed homes and some are hopeful that rental plans may provide a required nudge to property prices.
Here are five of the most expensive foreclosed homes that are currently on the market to give you an idea of what’s going on in the world for high-end foreclosure.
1. The Villa Mar Vista Estate, Laguna Beach, Calif.
List price: $20 million
Square footage: 11,333
Lot size: 11.8 acres
Built in: 2010
Features: Home theater, infinity-edge pool, sprawling gardens, terraces with views of Pacific Ocean, spa, private heliport and garage accommodations for 20 vehicles.
Listing broker: Richard Leavitt, Engel and Volkers
2. The Razor, La Jolla, Calif.
List price: $19.4 million
Square footage: 11,000
Lot size: 0.77 acres
Built in: 2007
Features: Contemporary-style luxury property with views of Pacific Ocean. Heated pool, dog run, two-space carport.
Note: The Razor will be put up for auction on September 28 with a starting bid of $16 million. Interested buyers are advised to purchased the home early to avoid entering bidding war.
Listing broker: Bob Hurwitz, Hurwitz James Co.
3. East Mockingbird Lane, Paradise Valley, Ariz.
List price: $18 million
Square footage: 17,015
Lot size: 4.9 acres
Built in: 2009
Features: Two libraries, a wine cellar, a piano room, “panic” room, Dolby sound system equipped in home theater which is designed in mahogany, on=site solar power stations to provide power for the home, $1.2 million security system and a 21-car, climate-controlled garage.
Listing broker: Joan Levinson, John Hall & Associates
4. The Wyndham Estate, Newport, R.I.
List price: $7.9 million
Square footage: 12,500
Lot size: 7.7 acres
Built in: 1891
Features: 19th- century home with modern amenities, a ballroom, music room, four fireplaces, rooftop deck with whirlpool overlooking ocean, artificial pond and waterfall in gardens and garage space for nine cars.
Listing broker: Paul Leys, Gustave White Sotheby’s International Realty
5. Biltmore Estates Drive, Phoenix
List price: $7 million
Square footage: 17,799
Lot size: 1.04 acres
Built in: 2002
Features: A library, home theater, wine cavern, balconies and alfresco patios, outdoor terraces for dining or dancing and located right next to the Arizona Biltmore Golf Course.
Listing broker: Sandra Baldwin, Russ Lyon Sotheby’s International
Source and Photos: Elite Choice