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 …

This paper introduces a dynamic general equilibrium model to study how the distribution of leverage and foreclosure … affect house prices.The model shows how foreclosure sales, through their effect on housing supply, amplify and propagate … leverage plays a key role in foreclosure, a regulator can reduce systemic risk by placing a cap on leverage. Counterfactual …