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This paper assesses the impact of the mortgage crisis on Chelsea, Massachusetts, a low-and moderate income community of 35,000 adjacent to Boston. After years of rapid growth, house prices started falling in 2005. According to our repeat-sales indices, by the end of 2009 prices had fallen by as...
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also to reduce the incidence of option ARM loans. APL's also clearly affected the risk of default and foreclosure: they …
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, balloon loans, and reduced documentation on the probabilities of foreclosure and prepayment. Results indicate that across … cities, reduced documentation is consistently related to higher probabilities of foreclosure, and prepayment penalties are …
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