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Foreclose, Default, Repeat

Home prices continue to fall, dropping another 18.7 percent in March. The price plunge is being blamed in part on the glut of cheap, foreclosed homes on the market. How cheap are these homes? They’re selling for as much as 31 percent below market value. Of course, deteriorating home prices are a leading driver of mortgage defaults, so more foreclosed homes lead to lower home prices, which lead to more foreclosures. [%comments]