It looks like the U.S. home foreclosure wave is climbing into the upper ranks. A new story in the Wall Street Journal out today is titled, Foreclosures Hit Rich and Famous.

There’s nothing modest about these houses, with outstanding loads of $5 million or more.

-a Tudor mansion in Bel-Air belonging to film star Nicolas Cage

- a 14-acre Westchester mansion belonging to a former Merrill Lynch executive who headed up the Latin America division

- a Manhattan condominium owned by Italian film producer Vittorio Cecchi Gori, sold in a foreclosure auction for $33.2 million

The article says that in February alone, 352 homes nationwide in this $5 million+ category “…were scheduled for foreclosure auction, the final step before a bank acquisition.”

So what does this mean for Latin America? If you want my advice, tread carefully in the obvious bubble markets fueled by lots of speculative California money, places like Los Cabos, Puerto Vallarta, and the northern Pacific developments of Costa Rica. Or at least drive a hard bargain there to be sure you’re getting the true market rate. Plan to use your home a lot as the high-end rental market and near-term appreciation are both looking dicey for a while.

See our Latin America real estate stories for more.

We’re getting ready to kick off a new real estate investing section of Luxury Latin America. We’ve got an advance taste of things to come here with an interview on farm and vineyard investing in Argentina.

It’s an interview with David English, who lives in Mendoza – the main wine-producing area of Argentina. David advises people on investing in land so they do not lose their shirts and then will be their eyes and ears on the ground to ensure things run smoothly. He is not a real estate agent who makes a sale and then pockets a commission. He works with buyers on a retainer basis to help them make the right choices.

So for all you wine business dreamers out there, how does a vineyard in Mendoza rate as an investment? How long until you start rolling in the cash?

“There is not standard length of time, since each investment is unique, ” David says. “What one has to keep in mind is that the wine industry in particular is quite capital intensive. Returns are low or nil for a number of years, as capital is tied up in wine, barrels, supplies, etc. while the wine is aging, being sold and being developed into a successful brand. All this takes time, and time truly is money. Also, economy of scale is critical with agricultural ventures. Whether one owns a grape farm or a peach farm, the larger the piece of land over which fixed costs can be spread, the better.”