Foreclosures Affecting The Affluent Too

Los Angeles County is seeing a sharp rise in the number of homes that appraise at $1 million or more receiving foreclosure notices, indicating that the wealthy are far from immune to a down economy.

The number of high-priced, real estate-owned homes in the southern California area have tripled in a three year period, the Los Angeles Times reports. Many of these foreclosed properties previously belonged to well-known actors and actresses. ForeclosureRadar, a real estate website, told the newspaper that the trend is likely to continue, as the number of filings do not appear to be slowing down.

According to the newspaper, most homeowners defaulted on their mortgages for the same reasons that plague many Americans - job loss, debt and other plummeting property values.

Many Americans have sought debt relief from foreclosure through federal or state refinancing and modification programs. Some who do not meet the income or credit requirements have been forced to short sell their homes to recoup some of their losses and find more affordable housing. Consumers who want to explore their financial options may benefit from credit counseling services.