The Depth of Negative Equity and Mortgage Default Decisions
نویسندگان
چکیده
منابع مشابه
Residential Mortgage Default
although default rates on residential mortgages have been relatively low in recent years, policymakers and economists should still be concerned about mortgage default for several reasons. First, while the foreclosure rate in the u.s. has averaged only 1 percent over the past 20 years, there have been dramatic swings in regional default rates over this period. For example, in the early 1990s for...
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Using a property-level data set of houses in Los Angeles County, I estimate that 30% of the recent surge in mortgage defaults is attributable to early home-buyers who would not have defaulted had they not borrowed against the rising value of their homes during the boom. I develop and estimate a structural model capable of explaining the patterns of both equity extraction and default observed am...
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In this paper I develop and estimate a dynamic model of the household decision to default on a mortgage using data from the Homeowners Affordability Modification Program (HAMP), which reduces delinquent homeowner housing payments to 31 percent of income. I find that HAMP has prevented 550,000 defaults as of June 2013 relative to a scenario where HAMP does not exist, at a cost-per-default preven...
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This paper solves a dynamic model of householdsmortgage decisions incorporating labor income, house price, ination, and interest rate risk. It uses a zero-pro t condition for mortgage lenders to solve for equilibrium mortgage rates given borrower characteristics and optimal decisions. The model quanti es the e¤ects of adjustable vs. xed mortgage rates, loan-to-value ratios, and mortgage a¤or...
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ژورنال
عنوان ژورنال: SSRN Electronic Journal
سال: 2010
ISSN: 1556-5068
DOI: 10.2139/ssrn.1895493