McMansions Going on the Block

Wealthy people are turning to auctions to sell off McMansions as their finances begin to collapse.

“We are seeing more people with homes that were on the market for $4 million to $7 million that are not selling, and they are calling us,” Jim Gall, president of Auction Company of America, tells The New York Times.

The paper reports about Jack Warner, 61, who had a successful construction business in Elkhart, Ind., that allowed him to purchase a home on Little Torch Key, Fla. 16 years ago.

In 2007, the home was appraised at almost $14 million. But when the real estate market collapsed, he closed the construction company. (more)