The Cost of Delay

Cordell, Larry; Geng, Liang; Goodman, Laurie S.; Yang, Lidan

doi:10.2139/ssrn.2256591

Cited by 7 publications

(8 citation statements)

References 13 publications

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“…Cordell, Geng, Goodman, and Yang (2013) use proprietary data to measure the heterogeneity in foreclosure delay following the Great Recession across states. They find that in judicial states, in which state law requires a court action to foreclose, the delay is much larger than in statutory foreclosure states that do not require judicial intervention.…”

Section: Controlling For Variation In State Foreclosure Policiesmentioning

confidence: 99%

Unemployment Benefits and Unemployment in the Great Recession: The Role of Macro Effects

et al. 2013

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Standard-Nutzungsbedingungen:Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden.Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen.Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. Terms of use: Documents in AbstractWe exploit a policy discontinuity at U.S. state borders to identify the effects of unemployment insurance policies on unemployment. Our estimates imply that most of the persistent increase in unemployment during the Great Recession can be accounted for by the unprecedented extensions of unemployment benefit eligibility. In contrast to the existing recent literature that mainly focused on estimating the effects of benefit duration on job search and acceptance strategies of the unemployed-the micro effect-we focus on measuring the general equilibrium macro effect that operates primarily through the response of job creation to unemployment benefit extensions. We find that it is the latter effect that is very important quantitatively.

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Section: Controlling For Variation In State Foreclosure Policiesmentioning

confidence: 99%

Unemployment Benefits and Unemployment in the Great Recession: The Role of Macro Effects

et al. 2013

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“…At first glance, it may seem that lenders should be eager to modify loans. 2 Due to high foreclosure transaction costs and falling house prices, a lender repossessing a property through foreclosure typically loses half the value of a loan (Cordell and Shenoy 2011). Some estimates indicate that by modifying rather than foreclosing on loans, investors could save $180 billion, which accounts to more than 1 percent of U.S. gross domestic product (Foote et al 2010).…”

Section: Previous Literaturementioning

confidence: 99%

Do borrower rights improve borrower outcomes? Evidence from the foreclosure process

Gerardi

Lambie‐Hanson

Willen

2013

Journal of Urban Economics

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“…There are many potential costs associated with foreclosure delay. Cordell, Geng, Goodman, and Yang (2013) discuss the added losses to lenders given foreclosure delays. Moreover, there may also be costs to neighborhoods when houses are in the foreclosure process, and there is little incentive for those occupying the homes to invest in maintenance.…”

Section: Background and Research Objectivesmentioning

confidence: 99%

Foreclosure Delay and Consumer Credit Performance

Calem

Jagtiani

Lang³

2014

SSRN Journal

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The deep housing market recession from 2008 through 2010 was characterized by a steep increase in the number of foreclosures. Foreclosure timelines -the length of time between initial mortgage delinquency and completion of foreclosure -also expanded significantly, averaging up to three years in some states. Most individuals undergoing foreclosure are experiencing serious financial stress. However, extended foreclosure timelines enable mortgage defaulters to live in their homes without making housing payments until the completion of the foreclosure process, thus providing a liquidity benefit. This paper tests whether the resulting liquidity was used to help cure nonmortgage credit delinquency. The authors find a significant relationship between longer foreclosure timelines and household performance on nonmortgage consumer credit during and after the foreclosure process. Their results indicate that a longer period of nonpayment of housingrelated expenses results in higher cure rates on delinquent nonmortgage debts and improved household balance sheets. Foreclosure delay may have mitigated the impact of the economic downturn on credit card default. However, credit card performance may deteriorate in the future as the current foreclosure backlog is cleared and the affected households once again incur housing expenses.

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The Cost of Delay

Cited by 7 publications

References 13 publications

Unemployment Benefits and Unemployment in the Great Recession: The Role of Macro Effects

Unemployment Benefits and Unemployment in the Great Recession: The Role of Macro Effects

Do borrower rights improve borrower outcomes? Evidence from the foreclosure process

Foreclosure Delay and Consumer Credit Performance

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