"But whether it’s a $200,000 house or a $2 million house, the basic story is the same. During the housing boom, households took on too much debt, in the form of mortgages or home equity loans. Often, the mortgages were exotic loans with low initial payments that were followed by higher costs later.
When families faced job losses or other economic setbacks as the economy fell into recession, many couldn’t keep up with the mortgage payments, said Daren Blomquist, a RealtyTrac vice president.
High-end homeowners in trouble have taken longer to fall into foreclosure because they typically had more of “a financial cushion to fall back on, to keep making their mortgage payments,” Blomquist said. “They’ve been able to hold out longer.”