The Impact of Interstate Foreclosure Cost Differences and the Value of Mortgages on Default Rates

摘要: Previous research on mortgage default has focused the costs, benefits, and characteristics of mortgagor. In such studies rates have been taken as a measure risk. this paper we present model where position lender affects default-foreclosure process. Important to lender's decision foreclose rather than renegotiate an existing loan are value legal costs associated with foreclosure. The empirical evidence supports hypothesis that both foreclosure affect rate. those states high significantly less low. This suggests previous models which include only benefits borrower incomplete can not be strict That is, low may indicate losses occur in other forms negotiation expensive costs.