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
- AT&T, Inc. Earnings: Is Long-Term Growth in Danger?
- Russia Retreats From U.S. as Sanctions Begin to Bite
- McDonald's Corporation Earnings: Is Growth Finally Coming Back?
- 1 Huge Threat to Tobacco Dividends Just Emerged Out of the UK
- Microsoft Corporation?s Job Cuts: Red Flag or Buy Sign?
- Microsoft Layoffs Include an End to Original Video Production