Campbell, John Y.; Giglio, Stefano; Pathak, Parag - In: American Economic Review 101 (2011) 5, pp. 2108-31
This paper uses data on all house transactions in Massachusetts over the last 20 years to show that houses sold after foreclosure, or close in time to the death or bankruptcy of a seller, are sold at lower prices than other houses. Foreclosure discounts are on average at 27 percent of the value...
