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The Cost of Foreclosure Delay

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  • Larry Cordell
  • Liang Geng
  • Laurie S. Goodman
  • Lidan Yang

Abstract

type="main"> We measure the cost of foreclosure delay by estimating time-related foreclosure costs using a large national sample of residential mortgages before, during, and after the recent U.S. housing crisis. The large volume of foreclosures, coupled with an unprecedented series of government interventions in mortgage servicing practices, significantly extended foreclosure timelines during and after the crisis. Costs were especially pronounced in judicial review states, which saw average foreclosure costs go up 15 percentage points, 24 percentage points in the highest cost state. Cost increases of this magnitude are likely to have consequences for servicing practices and mortgage credit availability.

Suggested Citation

  • Larry Cordell & Liang Geng & Laurie S. Goodman & Lidan Yang, 2015. "The Cost of Foreclosure Delay," Real Estate Economics, American Real Estate and Urban Economics Association, vol. 43(4), pages 916-956, November.
    • Handle: RePEc:bla:reesec:v:43:y:2015:i:4:p:916-956
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    References listed on IDEAS

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