On walking away: Rich folks edition

The delinquency rate on investment homes where the original mortgage was more than $1 million is now 23 percent. For cheaper investment homes, it is about 10 percent.

That’s from yesterday’s New York Times piece, Biggest Defaulters on Mortgages Are the Rich.

Makes sense, actually. Rich people can avoid the fallout of foreclosure more easily than middle-class folks can. Be locked out for seven years? Be sued by your lender? Not really an issue if your mortgage isn’t backed by Fannie Mae or Freddie Mac — and most mortgages over $500,000 are not (assuming you live in a state with anti-deficiency statutes).