Even the Rich are in Danger of Foreclosure

Nicholas Cage Bel- Air Mansion

        Many believe the current foreclosure crisis only haunts lower income families, those that are out of work and cannot pay their mortgage. Things have changed drastically over the past few years. More and more homes valued at over 1 million dollars are facing foreclosure. Although foreclosure rates for the general housing market have slowed in California, the number of homes valued at over a million dollars repossessed by banks and private lenders has tripled over the past 3 years. Many believe the cause of this increase in foreclosures can be attributed to poor financial planning and a downturn in the stock market. Similarly to cities around the country, several ultra- exclusive residential districts in Southern California such as Beverly Hills, Brentwood, and Newport Beach witnessed the sale of homes for a fraction of what they were once worth. For example, the August 29^th issue of the Los Angeles Times mentioned a 12,000 square foot mansion, once valued at almost 17 million dollars, selling for 8.595 million dollars. That’s almost 50% decrease in value! Even celebrities are feeling the effects of the economic downturn. Oscar winner Nicholas Cage’s home in Bel- Air, Ca recently went into foreclosure and was sold by Citibank for 11.8 million dollars. Its original price: an astounding 35 million dollars.