externalities from foreclosures. VPROs were widely adopted by local governments across the United States during the foreclosure … enactment of VPROs in Florida more than halved the negative externality from foreclosure. This finding is robust to a rich set …

This paper quantitatively accounts for the cyclical dynamics of key macroeconomic housing and mortgage market variables … using a tractable, searchtheoretic model of housing with equilibrium mortgage default. To explain these dynamics, the model … constraints. During housing busts, longer selling times spill over into higher foreclosure risk, thereby magnifying the response …