Nationwide, U.S. foreclosure activity dropped 23 percent year-to-date through October, but foreclosure activity on homes priced in the $5 million-plus range jumped 61 percent from the same period last year, RealtyTrac reports.
Together, Florida and California accounted for more than 60 percent of all ultra high-end foreclosure activity so far this year.
According to RealtyTrac, this trend may indicate that lenders are now financially stable enough to more comfortably take a big-ticket loss on these types of properties. The country’s improving housing market also may mean more potential buyers for these high-end homes.
RealtyTrac categorized properties into value ranges using three different data points available in its real estate database to complete its analysis. The three areas include the estimated amount of outstanding loans on homes, the estimated market value and the assessed value from the tax assessor. If those amounts were above $5 million, the property was included in the $5 million-plus category. --South Florid Business Journal