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 …

A mortgage borrower has several options once a foreclosure proceedings is initiated, mainly default and prepayment … to default and time to prepayment once the foreclosure proceedings is initiated. More importantly, we examine the …