The value of foreclosed property
AbstractThis paper examines the expected price appreciation of distressed property and compares it to the prevailing metropolitan area appreciation rate. The results show that the simple fact that the property is foreclosed indicates that it will be sold at a substantial discount (appreciate less than expected). The magnitude of the discount is sensitive to loan characteristics, legal restrictions, housing market conditions, and the bargaining position of the selling institution.
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Bibliographic InfoPaper provided by Federal Reserve Bank of St. Louis in its series Working Papers with number 2004-022.
Date of creation: 2004
Date of revision:
Other versions of this item:
- L85 - Industrial Organization - - Industry Studies: Services - - - Real Estate Services
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