First Quarter 2010

Nobody's Home: Weighing the prospects for neighborhoods hit hard by foreclosure

A historically large number of homes are vacant across the Fifth District, some from recent foreclosures, some from long-term decline in local economies. How to explain and to cope with the potentially deleterious effects these homes may have on localities has become an important question for community leaders and policymakers.

Related Links

Adelino, Manuel, Kristopher Gerardi, and Paul S. Willen. "Why Don't Lenders Renegotiate More Home Mortgages? Redefaults, Self-Cures and Securitization." Federal Reserve Bank of Boston Public Policy Discussion Paper No. 09-4, July 6, 2009.

Armstrong, Amy, Vicki Been, and Josiah Madar. "Transforming Foreclosed Properties Into Community Assets." New York University Furman Center for Real Estate and Urban Policy White Paper, December 2008.

"Community Perspective: Implementing the Neighborhood Stabilization Program." Federal Reserve Bank of Richmond MARKETWISE, Fall/Winter 2009.

Guiso, Luigi, Paola Sapienza, and Luigi Zingales. "Moral and Social Constraints to Strategic Default on Mortgages." National Bureau of Economic Research Working Paper No. 15145, July 2009.