We assess the credit market impact of allowing mortgage "strip-down" as a foreclosure-prevention measure, where strip … effective foreclosure-prevention program, because it would have only small and transient effects on the supply of mortgage loans. …

judicial process for a foreclosure sale have significantly lower rates of foreclosures relative to states that have no such … requirement. Using state laws requiring a judicial foreclosure as an instrument for actual foreclosures, as well as a regression … discontinuity design around state borders with differing foreclosure laws, we show that foreclosures have a large negative impact on …

match the homeownership rate, the average foreclosure rate, and the lower tail of the distribution of home-equity ratios … facts. We then use the model to account for the foreclosure crisis in terms of three shocks: overbuilding, financial … frictions, and foreclosure delays. The financial friction shock accounts for much of the decline in house prices, while the …

, the average foreclosure rate, and the distribution of home-equity ratios across homeowners prior to the recent boom and … show that the model can account for the observed decline in house prices and much of the increase in the foreclosure rate … if two additional forces are taken into account: (i) the lengthening of the time to complete a foreclosure (during which …