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
- You'll Never Guess America's Favorite Internet Service Provider (Hint: It's Not Comcast)
- This Shocking Report Reveals How Ex-Employers Can Shred Your Retirement Savings
- 3 Ways Windows 10 May Help Microsoft Sell More Windows Phones
- Russia May Be Forced Into Production Cuts Says Deputy PM
- Don't Panic Over International Business Machines Corp.'s Earnings
- Did the Swiss National Bank Unleash Mayhem in Currency Markets to Protect Its Private Shareholders?