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Foreclosures Soaring for High-End Houses

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SAN JOSE, Calif. (KCBS) The foreclosure crisis has now hit some of the most upscale properties in Silicon Valley as more than 300 owners of homes worth at least a million dollars have had the rug pulled out from under them since the first of the year.

Default notices on upscale homes are up six percent, according to realtor Cherie Colon.

“The high-end market unfortunately now is starting to catch up with the low-end, but sales are still being made,” said Colon. “If people see a deal, they will still move in this market.”

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Colon, who works for Windermere Silicon Valley Properties, said there are some great deals to be had.

“A $2.5 million house just went into contract for $1.8 million on a short sale,” she said. “It had a list price of $1.699 million and attracted multiple offers.”

Colon said a lot of it has to do with uncertainty in the job market.

“If they’re not losing their jobs, they’re afraid of it. I think everybody is fastening their seat belts in the job market and that’s taking a toll on the loans being written,” said Colon.

Similar issues are popping up in San Mateo County, where 600 default notices on million dollar plus homes have gone out over the last two years.

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