The Recovery Process Duration in Real Estate Credits : Economic Cycle, Liquidity and Efficiency of Enforcement Procedures

The minimization of financial losses and cost stemming from the credit recovery process is strictly connected with the time necessary to complete the procedure: in real estate credits, it depends on the liquidity and the efficiency of the enforcement procedures.The paper investigates the relationship between the national and regional economic cycle trend and, respectively, the liquidity of the property markets and real estate enforcement procedure efficiency through an empirical analysis of the Italian market. The empirica evidences do not support the economic cycle effects on the property market liquidity and on the competent courts efficiency- However, some real estate sectors appear more reactive toward the economic cycle