with search in the housing market and defaultable long-term mortgages. In equilibrium, both sellers' asking prices and time …-to-sell increase with the relative size of their outstanding mortgages. In turn, the liquidity of the housing market associated with …

We assess the credit market impact of allowing mortgage "strip-down" as a foreclosure-prevention measure, where strip …-down reduces the principal of underwater residential mortgages to the current market value of the property for homeowners in … effective foreclosure-prevention program, because it would have only small and transient effects on the supply of mortgage loans. …

The aim of the study is to explain if the foreclosure effect on prices is explained by a lower quality of foreclosed … estimate the impact of foreclosure on home prices in Florida and Indiana from 2000 to 2008. We employ a model of housing demand …-specific quality explains the vast majority of the foreclosure effects on house prices. Our results also show that foreclosed homes in …