Doviak, Eric and MacDonald, Sean (2011): Who enters the foreclosure process?
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Since February 2010, detailed information on every home mortgage default and foreclosure in New York State must be filed with the New York State Banking Department (NYSBD). Our analysis of the NYSBD data suggests that borrowers in default who took larger loans are more likely to progress to a foreclosure filing. It also suggests that reducing principal balances may reduce the foreclosure rate, but might have an adverse effect on the mortgage industry.
Given the frequent criticism of the Home Affordable Modification Program (HAMP), it is no surprise that defaulted borrowers whose mortgages were modified via HAMP progress to a lis pendens filing a higher rate than defaulted borrowers without a modification or with a non-HAMP modification. After controlling for delinquency length (and other factors) however, we find that the HAMP program may have been effective in helping defaulted borrowers avoid foreclosure.
|Item Type:||MPRA Paper|
|Original Title:||Who enters the foreclosure process?|
|Keywords:||mortgage; default; foreclosure|
|Subjects:||G - Financial Economics > G2 - Financial Institutions and Services > G21 - Banks; Depository Institutions; Micro Finance Institutions; Mortgages
D - Microeconomics > D1 - Household Behavior and Family Economics > D14 - Personal Finance
|Depositing User:||Eric Doviak|
|Date Deposited:||12. Dec 2011 19:38|
|Last Modified:||13. Feb 2013 22:47|
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Who enters the foreclosure process? (deposited 24. Oct 2011 13:19)
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