Kim, You Suk; Li, Wenli; Fang, Hanming - Society for Economic Dynamics - SED - 2013
This paper builds and estimtates a dynamic equilibrium model to study renegotiation between borrowers and lenders over distressed fixed-rate mortage loans using a unqie mortgage loan level data. The model captures borrowers' as well as lenders' behavior prior to borrowers' mortgages becoming...