Economic Brief

2009

 

September 2009, No. 09-09

Deterring Default: Why Some State Laws Decrease the Probability of Mortgage Foreclosures

Andra C. Ghent
Marianna Kudlyak
Stephen Slivinski

Our Research Focus: Consumer Finance, Financial Regulation

Many states give mortgage lenders strong legal means by which to pursue debt collection in the event of a mortgage default. In those states, probability of default is lower and the forms the default takes are often quite different from a costly conventional foreclosure.

View Full Essay


Additional Resources

Ghent, Andra C., and Marianna Kudlyak. "Recourse and Residential Mortgage Default: Theory and Evidence from U.S. States." Federal Reserve Bank of Richmond Working Paper 09-10, July 2009.

Contact Us

Richmond

Karl Rhodes
(804) 697-8144