'Rich' people facing foreclosures too

A piece in today's New York Times debunks the stereotype of lower-income subprime borrowers being the primary victims of the foreclosure boom -- sort of. Several dozen home owners in Greenwich, CT -- the hedge fund capital of the world -- have are facing foreclosure, including some 7-figure properties.

The New York Timesreports that "The town, which typically has about half a dozen foreclosure notices each month, recorded 34 filings in January, according to RealtyTrac."

So these foreclosure victims aren't necessarily as sympathetic as single moms losing the homes they scraped to buy. We're talking about, for example, professional gamblers and hedge fund managers -- some of whom, ironically, saw their fortunes turn because of bad bets on subprime mortgages.

The plights of these affulent people -- some of whom are now formerly affluent -- illustrates an important less of personal finance: having a good income is no substitute for poor money management.
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