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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 stemmed from loans originated in 2005 and 2006, leading many to suspect that lenders originated a...
Persistent link: https://www.econbiz.de/10010292214
complete the foreclosure process, and go to zero about a year after the bank sells the property to a new homeowner. The … shows that policies that slow the transition from delinquency to foreclosure likely exacerbate the negative effect of …
Persistent link: https://www.econbiz.de/10010292258
We evaluate the effects of laws designed to protect borrowers from foreclosure. We find that these laws delay but do …. We find that the right-to-cure law lengthens the foreclosure timeline but does not lead to better outcomes for borrowers. …
Persistent link: https://www.econbiz.de/10010292272
We present 12 facts about the mortgage crisis. We argue that the facts refute the popular story that the crisis resulted from finance industry insiders deceiving uninformed mortgage borrowers and investors. Instead, we argue that borrowers and investors made decisions that were rational and...
Persistent link: https://www.econbiz.de/10010292274
We estimate a model of foreclosure using a data set that includes every residential mortgage, purchase-and-sale, and … foreclosure transaction in Massachusetts from 1989 to 2008. We address the identification issues related to the estimation of the … occurred in Massachusetts between 2005 and 2008 and conclude that the foreclosure crisis was primarily driven by the severe …
Persistent link: https://www.econbiz.de/10010292310
owned by minority residents. Furthermore, we argue that the particularly dire foreclosure situation in urban neighborhoods …
Persistent link: https://www.econbiz.de/10010292355
the foreclosure process, and go to zero about a year after the bank sells the property to a new homeowner. The estimates … shows that policies that slow the transition from delinquency to foreclosure likely exacerbate the negative effect of …
Persistent link: https://www.econbiz.de/10010377447
The authors evaluate laws designed to protect borrowers from foreclosure. They find that these laws delay but do not … laws. They find that the right-to-cure law lengthens the foreclosure timeline but does not lead to better outcomes for …
Persistent link: https://www.econbiz.de/10010282766
. A foreclosure in the same association and at the same address depresses the sale price by 2.5 percent, but properties in … property coming on the market and toward a physical externality as the source of measured foreclosure externalities …
Persistent link: https://www.econbiz.de/10012458584
During the subprime mortgage crisis of 2007–2008, previously profitable loans to subprime borrowers turned sour and investments thought to be as safe as government debt sustained severe and unexpected losses. The crisis reconfigured the US financial services industry and helped spark the worst...
Persistent link: https://www.econbiz.de/10009319885