Foreclosures hit wealthier areas hardest

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From the Arizona Republic:

http://www.azcentral.com/news/articles/1122foreclosures1122.html

The Valley's growing foreclosure problem is hitting the upper and middle class the hardest.

Metro Phoenix homes in neighborhoods where prices range from $400,000 to $450,000 now have the highest foreclosure rate.

Almost 90 out of every 10,000 homes in that price range are in foreclosure, which is more than double the rate for homes costing below $200,000, according to an Arizona Republic analysis of data from the Information Market. Homes in areas in the $200,000-to-$250,000 range have the second-highest foreclosure rate, with 63 out of every 10,000 homes in foreclosure.

.......

"The two groups of homeowners hit the hardest now are investors and those who overextended themselves," said Jay Butler, director of realty studies at Arizona State University's Morrison School. "That's why more people in higher-end neighborhoods are struggling now."

Also, there are more loan programs to help lower-income homeowners, while fewer lenders are eager to make loans above $417,000. Mortgage giants Fannie Mae and Freddie Mac are restricted to mainly investing in loans below $417,000.

"Often, people with lower incomes are better prepared to survive tough times and look for help," Butler said.