How much of the recent rise in foreclosures can be explained by the large number of high-leverage mortgage contracts … originated during the housing boom? We present a model where heterogeneous households select from a set of mortgage contracts and … choose whether to default on their payments given realizations of income and housing price shocks. The set of mortgage …

This paper examines what happens to mortgages in the subprime mortgage market once foreclosure proceeding are initiated …

We conduct comprehensive analyses on whether and how the judicial foreclosure procedure helps subprime mortgage … borrowers to reinstate their delinquent loans outside foreclosure liquidation. Even though the transition rates of various exit … during a period of up to five years post the mortgage first become 90 days past due, we find that judicial states offer more …

In housing crises, high mortgage debt can feed a vicious circle of falling housing prices and declining consumption and … incomes, leading to higher mortgage defaults and deeper recessions. In such situations, resolution policies may need to be … experiences from Iceland, Ireland, Spain, and the United States, this paper discusses how economic trade-offs affecting mortgage …