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Real estate foreclosures: their functioning and the effects of recent reforms


  • Silvia Giacomelli

    () (Bank of Italy)

  • Tommaso Orlando

    () (Bank of Italy)

  • Giacomo Rodano

    () (Bank of Italy)


Lengthy in-court debt recovery procedures may adversely affect the economic and financial system, for example in the management of non-performing loans. This paper analyses the characteristics of real estate foreclosures in Italy and the determinants of their length. A decomposition of procedures into phases shows that the phases preceding and following the actual sale also contribute significantly to the total length of the procedure. The length also turns out to be influenced by both observable and unobservable court characteristics. We also find a reduction in the length of the procedures following recent reforms: new regulations are helping to reduce the length of the ‘pre-sale’ phase and, above all, of the sale phase.

Suggested Citation

  • Silvia Giacomelli & Tommaso Orlando & Giacomo Rodano, 2018. "Real estate foreclosures: their functioning and the effects of recent reforms," Questioni di Economia e Finanza (Occasional Papers) 448, Bank of Italy, Economic Research and International Relations Area.
  • Handle: RePEc:bdi:opques:qef_448_18

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    Cited by:

    1. Michela Pelizza & Klaus R. Schenk-Hoppé, 2020. "Pricing Defaulted Italian Mortgages," Journal of Risk and Financial Management, MDPI, Open Access Journal, vol. 13(2), pages 1-14, February.
    2. Guzmán González-Torres & Giacomo Rodano, 2020. "Court efficiency and aggregate productivity: the credit channel," Temi di discussione (Economic working papers) 1287, Bank of Italy, Economic Research and International Relations Area.
    3. Emilia Bonaccorsi di Patti & Cristina Demma & Davide Dottori & Giacinto Micucci, 2019. "Bad loan closure times in Italy," Questioni di Economia e Finanza (Occasional Papers) 532, Bank of Italy, Economic Research and International Relations Area.

    More about this item


    real estate foreclosures; debt recovery; civil justice;

    JEL classification:

    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
    • K10 - Law and Economics - - Basic Areas of Law - - - General (Constitutional Law)
    • K40 - Law and Economics - - Legal Procedure, the Legal System, and Illegal Behavior - - - General

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