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. …-term reduction in mortgage interest rates and a small, short-term increase in mortgage approval rates, but no long-term effects, and …

associated with the liquidation of collateralized debt. Using the mortgage market as a laboratory, we conjecture that lenders …

I develop an equilibrium model of housing and default to jointly analyze the effects of bankruptcy and foreclosure … debt. I show that the interaction between foreclosure and bankruptcy decisions is crucial for explaining the observed cross … bankruptcy rates but increased foreclosure rates, and that the Home Affordable Refinance Program reduced foreclosures during the …