In today’s current economic crisis more and more people everyday are finding that they cannot keep up with their mortgage payments. Some might find it surprising that the high end million dollar home owners are feeling the economic impact the most. In fact, according to Bloomberg million dollar home owners are defaulting at almost twice the national rate. More and more million dollar and multimillion dollar homeowners are unable to keep their homes and are turning to short sales in an attempt to avoid foreclosure.

Short sales have become increasingly popular for homes of all values, but especially for homes valued over a million dollars. A short sale is a sale approved by the lender that allows the home owner to sell the home for less than what they owe on it. The lender in turn agrees to settle the mortgage for the lesser amount. This has become increasingly necessary with the drastic drop in home values across the country. Home owners, about 25 percent of them, now live in homes that are upside down, meaning they owe more, in some cases hundreds of thousands more, on their home than its current market value.

Many of the rich simply aren’t getting richer today. “You are just starting to see the tip of the iceberg with luxury short sales,” said Adrian Heyman, owner of Property Advisors, a real estate broker in Scottsdale, Arizona. “A lot of wealthy people are upside down in their mortgages and they just can’t afford the second or third vacation home anymore.” This is a key part in the increase of short sale homes throughout the county, which tripled in the first six months of this year compared to the same time last year. The housing market during 2009 has become saturated with short sale luxury homes.

As money continually becomes tighter with slashed salaries and layoffs, there is no telling when the housing market will take a turn for the better. Default rates are expected to continue to rise and more short sale contracts are expected in the months to come.

Just like everything in life, this is not bad news for all people. If you are one of the fortunate ones who find themselves with the financial means, you can certainly find a bargain. If you are in the housing market, the options are plentiful and the deals just may be the best you will see in your lifetime. If you can, now is the time to take advantage of low housing prices.