Negative Equity and Foreclosure: Theory and Evidence

By Christopher L. Foote, Kristopher Gerardi, P. Willen. 2008

590 citations recorded by the source corpus.

Subfields: Accounting, Economics and Econometrics, Finance

View Paper: https://www.semanticscholar.org/paper/db31051e124ed05ce6565484e53fe13645d8d131

How researchers see this paper

The researchers whose trusted networks rank it highest, strongest advocate first. Every researcher gets a different order.

In Accounting

1. C. Mayer
2. John Y. Campbell
3. John V. Duca
4. Kristopher Gerardi
5. Kyle F. Herkenhoff
6. Lee E. Ohanian
7. P. Willen
8. Anthony Murphy

In Economics and Econometrics

1. C. Mayer
2. John Y. Campbell
3. John V. Duca
4. P. Willen
5. Lee E. Ohanian
6. Kyle F. Herkenhoff
7. Kristopher Gerardi
8. Anthony Murphy

In Finance

1. C. Mayer
2. John Y. Campbell
3. P. Willen
4. Lee E. Ohanian
5. Kyle F. Herkenhoff
6. Kristopher Gerardi
7. John V. Duca
8. Anthony Murphy

Citations in the corpus

• Mortgage Design in an Equilibrium Model of the Housing Market (2018, unknown): “Foote, Gerardi, and Willen (2008) provide evidence for a “double trigger” theory of mortgage defaults, whereby most defaults are accounted for by a combination of negative equity and an income shock as is the case in our model.”
• Mortgage Modification and Strategic Behavior: Evidence from a Legal Settlement with Countrywide (2014, background): “7 See, among others, Foote, Gerardi, and Willen ( 2008 ) ; Cohen-Cole and Morse ( 2010 ) ; and Elul et al. ( 2010 ) . role of borrowing recent See also Mian and Sufi ( 2011 ) who examine the the home equity-based channel in the crisis using a dataset consisting of individual credit files.”
• Negative Equity Does Not Reduce Homeowners' Mobility (2012, background): “Further, owning a house with negative equity is like taking a highly leveraged position in the real estate market; the owner may want to continue holding the house in hopes of making a large gain if the house appreciates (Foote, Gerardi, and Willen, 2008).”
• Unemployment, Negative Equity, and Strategic Default (2013, methodology): “See the two-period model developed by Foote et al. [2008] for an example of how wealth could play an important role in the default decision. (11)For example, the BHPS asks, “In the last twelve months have you ever found yourself more than two months behind with your rent/mortgage?” (12)Gathergood [2”
• Can't Pay or Won't Pay? Unemployment, Negative Equity, and Strategic Default (2018, result): “…our results confirm those of Gyourko and Tracy (2014)39 and also provide some support for the double trigger model of mortgage default described in Foote et al. (2008) and elsewhere.40 As mentioned above, the question of the importance of strategic default has occupied 39Indeed, consistent with…”
• Why Don't Lenders Renegotiate More Home Mortgages? Redefaults, Self-Cures, and Securitization (2009, unknown): “18See Foote, Gerardi, and Willen (2008) for a more detailed discussion. to modification, while the differences are small for the mean and median payment increase.”
• Second Chances: Subprime Mortgage Modification and Re-Default (2009, unknown): “For a discussion see Foote et al (2008).”