Recourse And Strategic Mortgage Defaults PDF Download
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| Author | : Alin Marius Andries |
| Publisher | : |
| Total Pages | : 0 |
| Release | : 2023 |
| Genre | : |
| ISBN | : |
Download Recourse and (Strategic) Mortgage Defaults Book in PDF, ePub and Kindle
We study the impact of changes in recourse legislation on mortgage defaults. Romania provides us with an ideal experimental setting to identify this impact. Using a large dataset of mortgage loans granted between 2003 and 2016, combined with individual income tax records, we exploit an exogenous variation in Romanian recourse policy and analyze the behavior of borrowers with mortgages issued under a creditor-friendly recourse regime after a change in policy limited lender recourse. We find robust evidence that eliminating penalties for default raises the probability of default for existing borrowers, encouraging a deterioration in payment discipline, especially for those traditionally considered least likely to default (i.e., those with higher income and lower leverage). Our findings highlight the ex-post effects of a switch from a creditor- to a debtor-friendly recourse policy. Broadly, our results point to the importance of assessing borrowers' default incentives before introducing legislation with retroactive applicability.
| Author | : Alin Marius Andrieş |
| Publisher | : |
| Total Pages | : |
| Release | : 2021 |
| Genre | : |
| ISBN | : |
Download Recourse and (strategic) Mortgage Defaults: Evidence from Changes in Housing Market Laws Book in PDF, ePub and Kindle
| Author | : Elisabeth Dicker |
| Publisher | : |
| Total Pages | : 80 |
| Release | : 2021-08-10 |
| Genre | : |
| ISBN | : |
Download Strategic Mortgage Default System And Knowledge Book in PDF, ePub and Kindle
A mortgage default arises when a borrower fails to make monthly payments to their principal balance or interest on a home loan. Yet, defaulting can also occur with credit card and student loans In this book, you will discover: - What "strategic mortgage default" is and why banks and lenders are often powerless to stop the situation... - The scare tactics banks use to coerce... or even threaten homeowners into keeping up with their monthly mortgage payments (I show you a way to get around these almost devious scare tactics.) - The #1 tool banks and lenders like to use to discourage strategic mortgage default... and why it is so painfully effective for MOST people - The truth about strategic mortgage default... and why it is NOT as unethical as the banks and government makes it out to be (What you read here may shock you!) - Why it is NOT in the bank's best interests that you default on your mortgage... and what you can do to take advantage of this fact - And so much more! Get your copy today!
| Author | : Ryan Goodstein |
| Publisher | : |
| Total Pages | : 43 |
| Release | : 2013 |
| Genre | : |
| ISBN | : |
Download Contagion Effects in Strategic Mortgage Defaults Book in PDF, ePub and Kindle
Using a large sample of U.S. mortgages, we document contagion effects in strategic mortgage defaults. These result from borrowers choosing to exercise their in the money default option. Our findings suggest this choice is influenced by the delinquency rate in surrounding zip codes after controlling for determinants of mortgage default. The fact that the local area delinquency rate is an important factor for strategic defaulters but not for defaults that are the result of inability to pay supports the contagion hypothesis. Our estimates suggest a 1% increase in the delinquency rate increases the probability of a strategic default up to 16.5%.
| Author | : Hae Eyles |
| Publisher | : |
| Total Pages | : 80 |
| Release | : 2021-08-10 |
| Genre | : |
| ISBN | : |
Download The Mortgage Defaulting Handbook Book in PDF, ePub and Kindle
A mortgage default arises when a borrower fails to make monthly payments to their principal balance or interest on a home loan. Yet, defaulting can also occur with credit card and student loans In this book, you will discover: - What "strategic mortgage default" is and why banks and lenders are often powerless to stop the situation... - The scare tactics banks use to coerce... or even threaten homeowners into keeping up with their monthly mortgage payments (I show you a way to get around these almost devious scare tactics.) - The #1 tool banks and lenders like to use to discourage strategic mortgage default... and why it is so painfully effective for MOST people - The truth about strategic mortgage default... and why it is NOT as unethical as the banks and government makes it out to be (What you read here may shock you!) - Why it is NOT in the bank's best interests that you default on your mortgage... and what you can do to take advantage of this fact - And so much more! Get your copy today!
| Author | : Angelique Harbater |
| Publisher | : |
| Total Pages | : 80 |
| Release | : 2021-08-10 |
| Genre | : |
| ISBN | : |
Download An Essential Guide To Get To Understand Mortgage Default Book in PDF, ePub and Kindle
A mortgage default arises when a borrower fails to make monthly payments to their principal balance or interest on a home loan. Yet, defaulting can also occur with credit card and student loans In this book, you will discover: - What "strategic mortgage default" is and why banks and lenders are often powerless to stop the situation... - The scare tactics banks use to coerce... or even threaten homeowners into keeping up with their monthly mortgage payments (I show you a way to get around these almost devious scare tactics.) - The #1 tool banks and lenders like to use to discourage strategic mortgage default... and why it is so painfully effective for MOST people - The truth about strategic mortgage default... and why it is NOT as unethical as the banks and government makes it out to be (What you read here may shock you!) - Why it is NOT in the bank's best interests that you default on your mortgage... and what you can do to take advantage of this fact - And so much more! Get your copy today!
| Author | : Michael Seiler |
| Publisher | : |
| Total Pages | : |
| Release | : 2014 |
| Genre | : |
| ISBN | : |
Download The Effect of Perceived Lender Characteristics and Market Conditions on Strategic Mortgage Defaults Book in PDF, ePub and Kindle
Inequity Aversion has long been applied in a game theoretic setting to explain that individuals are willing to sacrifice personal wealth in order to financially penalize players they perceive to be acting selfishly or unfairly. I apply inequity aversion to strategic mortgage default decisions and find that individual homeowners (as well as a second sample of professional mortgage lenders) have a differential stated willingness to walk away from their mortgage based on the perceived characteristics of their lender. Importantly, these significant differences can be removed even with extremely modest loan modifications. Finally, I document that regular homeowners and even professional lenders do a poor job differentiating between the owner of their loan and the servicer of their loan. This is particularly troubling given the extreme misconception of their bank's true character. As a result, much of their willingness to penalize is misplaced resulting in an unnecessary number of strategic mortgage defaults.
| Author | : Juan Carlos Hatchondo |
| Publisher | : International Monetary Fund |
| Total Pages | : 33 |
| Release | : 2012-01-01 |
| Genre | : Business & Economics |
| ISBN | : 1463932537 |
Download Mortgage Defaults Book in PDF, ePub and Kindle
This paper incorporates house price risk and mortgages into a standard incomplete market (SIM) model. The model is calibrated to match U.S. data and accounts for non-targeted features of the data such as the distribution of down payments, the life-cycle profile of home ownership, and the mortgage default rate. The average coefficients that measure the agents' ability to self-insure against income shocks are similar to those of a SIM model without housing but housing increases the values of these coefficients for younger agents. The response of consumption to house price shocks is minimal. The introduction of minimum down payments or income garnishment benefits a majority of the population.
| Author | : Michael Bradley |
| Publisher | : |
| Total Pages | : |
| Release | : 2013 |
| Genre | : |
| ISBN | : |
Download Strategic Mortgage Default Book in PDF, ePub and Kindle
This paper studies strategic default -- the willingness of a borrower to walk away from a mortgage when the value of the home falls below the unpaid principal balance despite an ability to pay. This study differs from the literature in two fundamental ways: first, we use unique data assets describing the household's equity position and capacity to carry the debt in addition to credit performance to identify strategic defaulters accurately. Secondly, we address externalities from local foreclosures and other strategic defaults and find that the incidence of strategic default is sensitive to the presence of other nearby strategic defaulters. These results have significant implications for foreclosure and loss mitigation policies employed by servicers and investors.
| Author | : |
| Publisher | : DIANE Publishing |
| Total Pages | : 37 |
| Release | : |
| Genre | : |
| ISBN | : 1437985335 |
Download Rise in Mortgage Defaults Book in PDF, ePub and Kindle
