Foreclosure reduces the value of a home by 27 percent on average, according to a new study from Harvard University and the Massachusetts Institute of Technology.
Other kinds of forced sales have less dramatic impacts, the study found.
An estate sale after an owner’s death reduces the price of the home by only 5 percent to 7 percent. A bankruptcy filing cuts the value by an average 3 percent.
Homeowners need us more than ever. This is just additional evidence why distressed homeowners need to be informed so they can make an educated decision and be provided with options.