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Negative equity and foreclosure : theory and evidence

Foote, Christopher L.; Gerardi, Kristopher; Willen, Paul - 2008

Millions of Americans have negative housing equity, meaning that the outstanding balance on their mortgage exceeds their home’s current market value. Our data show that the overwhelming majority of these households will not lose their homes. Our finding is consistent with historical evidence:...

Persistent link: https://www.econbiz.de/10003713655

Making sense of the subprime crisis

Gerardi, Kristopher; Lehnert, Andreas; Sherland, Shane M.; … - 2008

This paper explores the question of whether market participants could have or should have anticipated the large increase in foreclosures that occurred in 2007 and 2008. Most of these foreclosures stem from loans originated in 2005 and 2006, leading many to suspect that lenders originated a large...

Persistent link: https://www.econbiz.de/10003810078

Why don't lenders renegotiate more home mortgages? : Redefaults, self-cures, and securitization

Adelino, Manuel; Gerardi, Kristopher; Willen, Paul - 2009

We document the fact that servicers have been reluctant to renegotiate mortgages since the foreclosure crisis started in 2007, having performed payment-reducing modifications on only about 3 percent of seriously delinquent loans. We show that this reluctance does not result from securitization:...

Persistent link: https://www.econbiz.de/10003860024

Why don't lenders renegotiate more home mortgages? : redefaults, self-cures and securitization

Adelino, Manuel; Gerardi, Kristopher; Willen, Paul - 2009

Persistent link: https://www.econbiz.de/10003862245

Why don’t lenders renegotiate more home mortgages? : the effect of securitization

Adelino, Manuel; Gerardi, Kristopher; Willen, Paul - 2010

Persistent link: https://www.econbiz.de/10003875262

Making sense of the subprime crisis

Gerardi, Kristopher; Lehnert, Andreas; Sherland, Shane M.; … - 2009

Persistent link: https://www.econbiz.de/10003813035

Can't pay or won't pay? : unemployment, negative equity, and strategic default

Gerardi, Kristopher; Herkenhoff, Kyle F.; Ohanian, Lee E.; … - 2015 - This version: September 21, 2015

Prior research has found that job loss, as proxied for by regional unemployment rates, is a weak predictor of mortgage default. In contrast, using micro data from the PSID, this paper finds that job loss and adverse financial shocks are important determinants of mortgage default. Households with...

Persistent link: https://www.econbiz.de/10011401237

The Role and Use of Debt Agreements in Australian Personal Insolvency Law

Ramsay, Ian - 2011

law. Debt agreements were introduced into Australian personal insolvency law in 1996 as an alternative to bankruptcy. This … alternative to bankruptcy …

Persistent link: https://www.econbiz.de/10013119696

Perspectives of Financial Counsellors and Consumer Solicitors on Personal Insolvency

Ali, Paul - 2015

highly sceptical about the value of debt agreements, or ‘Part IX' agreements. By contrast, they generally saw bankruptcy as a … regarding the long term impact of bankruptcy upon severely disadvantaged debtors. Several expressed the view that bankruptcy … disadvantages, such as mental illness. Instead, for people in this situation, bankruptcy offers little more than a temporary …

Persistent link: https://www.econbiz.de/10013015442

Identifying the Effect of Securitization on Foreclosure and Modification Rates Using Early-Payment Defaults

Adelino, Manuel - 2015

This paper develops and estimates an instrumental variables strategy for identifying the causal effect of securitization on the incidence of mortgage modification and foreclosure based on the early-payment default analysis performed by Piskorsi, Seru, and Vig (2010). Estimation results show that...

Persistent link: https://www.econbiz.de/10013038856