Chan, Sewin; Haughwout, Sewin; Hayashi, Andrew T.; … - 2015
The mortgage default decision is part of a complex household credit management problem. We examine how factors … affecting mortgage default spill over to other credit markets. As home equity turns negative, homeowners default on mortgages … and HELOCs at higher rates, whereas they prioritize repaying credit cards and auto loans. Larger unused credit card limits …