Determinants of a foreclosure discount

Determinants of Foreclosure: A Chicago Case Study

I would like to thank Professor Quigley for his time, inspiration and guidance. I would also like to thank Harrison Dekker for his help with data collection, and Paavo Monkkonen for his help with GIS. 2 ABSTRACT This paper examines the determinants and the geographic distribution of foreclosure in the Chicago area at the census tract level. Subprime lending has a large positive effect on forecl...

Mortgage Foreclosure Prevention Efforts

The neighborhood effects of foreclosure

Neighborhood quality is an important attribute of housing yet its value is rarely known to researchers. We argue that changes in nearby foreclosures reveal changes in neighborhood quality. Thus estimates of the hedonic price of nearby foreclosures provide a glimpse of values that people hold for local neighborhood quality. The empirical models include controls for both spatial dependence in hou...

Foreclosure and health status.

In 2009, more than 2.8 million housing units in the U.S. received a foreclosure notice. That represents about 1 in every 45 properties and a 120% increase in the number of foreclosed properties since 2007. Real estate experts predict even more foreclosures in 2010 as high unemployment continues. The cascading effects of the foreclosure crisis on the U.S. economy are all too clear; the effects o...

Foreclosure with Incomplete Information

We investigate the robustness of the new foreclosure doctrine and its associated welfare implications to the introduction of incomplete information. In particular, we let the upstream firm’s marginal cost be private information, unknown to the downstream firms. The previous literature has argued that vertical integration is harmful because it allows an upstream monopolist to limit output to mon...