Abandoned. When a borrower cannot afford to make mortgage payments and the value of the property is less than the amount of the mortgage, the lender will often foreclose. The borrower has no option to refinance and may be unable to secure the lender's agreement to writeoff the balance of the loan after a sale. In that situation many will abandon the mortgaged property and allow the lender to take it.
Abandoned properties and the resulting declining home values contribute to the specter often seen on TV of blocks of vacant houses.
Related Fool Articles
Recent Mentions on Fool.com
- How Twitter Inc. Lost to Instagram, and What It Can Do About It
- Blast From the Past: Revisiting Movie, TV, and Music Forecasts From 2008
- Contract Required: Here's What AT&T Is Doing With DirecTV
- The Dangers of Building Residential Solar Come to Light in Nevada
- Intel May Have Just Killed NVIDIA's G-SYNC
- Does Fitbit Stand to Lose the Most From Apple Watch?