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Credit access following a mortgage default

Author

Listed:
  • William Hedberg
  • John Krainer

Abstract

Borrowers who default on mortgages return to the mortgage market at extremely slow rates. Only about 10% of borrowers with a prior serious delinquency regain access to the mortgage market within 10 years of their default. Borrowers who terminate mortgages for reasons other than default return to the market about two-and-a-half times faster than those who default. Renewed access to credit takes even longer for subprime borrowers with a serious delinquency on their record.

Suggested Citation

  • William Hedberg & John Krainer, 2012. "Credit access following a mortgage default," FRBSF Economic Letter, Federal Reserve Bank of San Francisco, issue oct29.
    • Handle: RePEc:fip:fedfel:y:2012:i:oct29:n:2012-32
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    References listed on IDEAS

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    1. Ethan Cohen-Cole & Burcu Duygan-Bump & Judit Montoriol-Garriga, 2009. "Forgive and forget: who gets credit after bankruptcy and why?," Supervisory Research and Analysis Working Papers QAU09-2, Federal Reserve Bank of Boston.
    2. Kenneth P. Brevoort & Cheryl R. Cooper, 2013. "Foreclosure's Wake: The Credit Experiences of Individuals Following Foreclosure," Real Estate Economics, American Real Estate and Urban Economics Association, vol. 41(4), pages 747-792, December.
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