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The Value of Foreclosed Property

Author

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  • Anthony Pennington-Cross

    () (The Federal Reserve Bank of St. Louis, Research Department, P.O. Box 442, St. Louis, MO 63166-0442)

Abstract

This paper examines the expected price appreciation of distressed property and compares it to the prevailing metropolitan area appreciation rate. Whether due to individual property or local area heterogeneity in appreciation, the results show that foreclosed property appreciates less than the area average appreciation rate. The magnitude of the deviation is sensitive to loan characteristics, legal restrictions, housing market conditions, and marketing time.

Suggested Citation

  • Anthony Pennington-Cross, 2006. "The Value of Foreclosed Property," Journal of Real Estate Research, American Real Estate Society, vol. 28(2), pages 193-214.
  • Handle: RePEc:jre:issued:v:28:n:2:2006:p:193-214
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    References listed on IDEAS

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    JEL classification:

    • L85 - Industrial Organization - - Industry Studies: Services - - - Real Estate Services

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