Over the last 10 to 20 years, we have had steadily rising home values that have surpassed the rate of inflation. This has caused a tremendous amount of foreclosures, meaning about 1 in 60. So far this year, the number of foreclosures is up 56 percent compared to last year. The main reason is that people are applying for mortgages they can’t afford. As a result, foreclosures in the high end of the market now equal those in the moderate and low-end markets. Houses really deteriorate when they are foreclosed on, and the owners or mortgage companies don’t maintain their properties. The Wall Street Journal found that in northern California alone, high-end foreclosures are up 1600 percent in one year. That’s a huge increase! The upside is that foreclosures present an opportunity for people to buy cheaper houses, especially at the higher level where one can purchase mansions at a steal!