A study on the distribution of the foreclosure lag, its expected capital opportunity cost and its analyses

Autor:	Chen Miller, Shu Ling Chiang, Ming Shann Tsai
Rok vydání:	2016
Předmět:	Economics and Econometrics 050208 finance Opportunity cost Financial economics Lag Forbearance 05 social sciences Monetary economics Loss mitigation Loan Capital (economics) 0502 economics and business Value (economics) Economics Foreclosure 050207 economics Finance
Zdroj:	Journal of International Financial Markets, Institutions and Money. 45:156-170
ISSN:	1042-4431
DOI:	10.1016/j.intfin.2016.07.006
Popis:	This paper presents models that help lenders to calculate the foreclosure lag and its expected capital opportunity cost. The empirical results show the foreclosure lag fits well with the exponential distribution after linear transformation. The value of the expected capital opportunity cost is nearly twice the mortgage rate. In addition, the economic situations, loan characteristic, and state foreclosure policies significantly influence the foreclosure lag. The extra foreclosure lag tends to be longer in judicial foreclosure states than in states with a redemption policy. Moreover, new U.S. foreclosure laws, enacted after 2008, effectively shorten the foreclosure lag and decrease its volatilities.
Databáze:	OpenAIRE
Externí odkaz:	https://explore.openaire.eu/search/publication?articleId=doi_________::a6a7b362b05c33e4671a2f2e4619eabb https://doi.org/10.1016/j.intfin.2016.07.006 Zobrazit plný text záznamu Full Text from ScienceDirect