Take-up of mortgage assistance for distressed homeowners: The role of geographic accessibility
Program participation is a necessary but not sufficient condition for the success of housing policies such as mortgage assistance for distressed homeowners. Low rates of take-up of available assistance among eligible homeowners have hampered the potential success of programs such as the U.S. Treasury’s Hardest Hit Fund initiative. This paper investigates the effect of accessibility and related transaction costs, measured in terms of geographic access to application intake agencies, on the likelihood of application completion for homeowners who begin the assistance application process. Using data from a large-scale mortgage assistance program in Ohio, the work is motivated by the observation that a surprisingly small percentage of eligible homeowners who register for assistance submit a completed application. Consistent with the literature on access and transaction costs, we find that proximity to intake agencies increases the probability of application submission in a small, but significant, way. The results suggest that further emphasis should be given to the interactions at the front lines of mortgage assistance programs.
If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
When requesting a correction, please mention this item's handle: RePEc:eee:jhouse:v:24:y:2014:i:c:p:57-74. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Zhang, Lei)
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.