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Loan Modification

: Mortgage Lender Implode-o-Meter

Burning Down the House

By Implode-Explode Heavy Industries

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"Foreclosure breeds foreclosure. This is sometimes called the contagion effect. It has been shown that a foreclosure in the immediate area tends to reduce the value of homes in the vicinity by 1%. As home values fall and homes fall into disrepair, yesterday's foreclosures set up tomorrow's foreclosures. Families are more likely to give up the struggle to pay as the neighborhood runs down and empty homes surround. This is why we see clusters of foreclosures by state, region and neighborhood."

Full post as published by Mortgage Lender Implode-o-Meter on February 18, 2010 (boomark / email).

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