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Rethinking Foreclosure Dynamics in a Sunbelt City: What Parcel-Level Mortgage Data Can Teach Us About Subprime Lending and Foreclosures

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  • Elizabeth Strom
  • Steven Reader

Abstract

The dynamics of mortgage foreclosures can be studied by examining parcel-level sales and mortgage data, alongside aggregate data reporting on defaults. This research relies on such microlevel analysis to explore three issues in high-foreclosure census tracts located in Hillsborough County, Florida. First, it notes the prevalence of investor-owners in high-foreclosure areas. Second, it considers the high percentage of adjustable rate mortgages identified in these areas and the frequency with which mortgage defaults occur before interest rate adjustments take effect. Third, it suggests that high levels of investor ownership and extreme volatility of housing and mortgage markets in these neighborhoods complicate the analysis of, and solutions to, the foreclosure crisis.

Suggested Citation

  • Elizabeth Strom & Steven Reader, 2013. "Rethinking Foreclosure Dynamics in a Sunbelt City: What Parcel-Level Mortgage Data Can Teach Us About Subprime Lending and Foreclosures," Housing Policy Debate, Taylor & Francis Journals, vol. 23(1), pages 59-79, January.
    • Handle: RePEc:taf:houspd:v:23:y:2013:i:1:p:59-79
    DOI: 10.1080/10511482.2012.749935
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    References listed on IDEAS

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    1. Kristopher Gerardi & Adam Hale Shapiro & Paul S. Willen, 2007. "Subprime outcomes: risky mortgages, homeownership experiences, and foreclosures," Working Papers 07-15, Federal Reserve Bank of Boston.
    2. Shane M. Sherlund, 2008. "The past, present, and future of subprime mortgages," Finance and Economics Discussion Series 2008-63, Board of Governors of the Federal Reserve System (U.S.).
    3. Anthony Pennington‐Cross & Giang Ho, 2010. "The Termination of Subprime Hybrid and Fixed‐Rate Mortgages," Real Estate Economics, American Real Estate and Urban Economics Association, vol. 38(3), pages 399-426, September.
    4. Andrew F. Haughwout & Donghoon Lee & Joseph Tracy & Wilbert Van der Klaauw, 2011. "Real estate investors, the leverage cycle, and the housing market crisis," Staff Reports 514, Federal Reserve Bank of New York.
    5. Kristopher Gerardi & Adam Hale Shapiro & Paul S. Willen, 2008. "Summary of \"subprime outcomes: risky mortgages, homeownership experiences, and foreclosures\"," Proceedings 1091, Federal Reserve Bank of Chicago.
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