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 …

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 …