Juvenile Delinquent Mortgages: Bad Credit or Bad Economy?

Abstract

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What moves housing markets: A variance decomposition of the rent–price ratio

“…Extraordinary events in the financial sector and the macroeconomy as a whole have accompanied this decline of house prices. The fall in house prices triggered a wave of mortgage defaults and home foreclosures, perhaps because some borrowers did not fully understand the terms of their mortgage contract (Bucks and Pence, 2008) or perhaps because a significant portion of homeowners chose to strategically default once their mortgage was sufficiently under water (Haughwout et al, 2008;Foote et al, 2008). The increase in default rates on mortgages lead to a collapse in the price of mortgagebacked securities, which likely contributed to a run on the ''shadow" banking system (Gorton, 2009) and sharp devaluation of stock prices.…”

Developers, Herding, and Overbuilding

“…There are, of course, too many papers on this topic to list even a small fraction of them here. To list just a few, Haughwout et al (2008) and Foote et al (2008) emphasize interactions between mortgage markets, the housing sector, and the larger economy. See Aizenman and Jinjarak (2009) for an exploration of the role of international flows of goods and financial assets, so-called "global imbalances."…”

Housing Disinvestment and Crime in a Phoenix Suburb: Exploring the Differential Effects of Investors and Owner-Occupants

“…As investors are more motivated by profit, they are likely more sensitive to changes in local housing market conditions and may be more likely to default on their mortgages when housing prices decline (Greenberg, Essene, and Lee 2009;Haughwout, Peach, and Tracy 2008). How quickly investors disinvest from their property depends not only on their intentions but also on local housing market conditions (Herbert, Lew, and Sanchez-Moyano 2013;Mallach 2010a).…”