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
- 5 Key Takeaways from ExOne Co.'s Earnings Call
- Can IBM Afford to Raise Its Dividend?
- Who Will Make Google?s Next Nexus Phone?
- Why Nike Inc and Under Armour Inc Will Keep Winning
- 3 Important Numbers Westport Innovations Inc. Bears Overlooked in the Company's Earnings Report
- 1 Year After the Worst Analyst Call in History, Apple Is Stronger Than Ever