Pathways After Default: What Happens to Distressed Mortgage Borrowers and Their Homes?

Report by Sewin Chan, Claudia Sharygin, Vicki Been, and Andrew Haughwout
August 2011

Furman Center for Real Estate and Urban Policy   (New York)

This paper explores what factors are associated with the various pathways the borrower and servicer can take once a foreclosure notice is filed.  We partnered with the Federal Reserve to assess what characteristics of the borrower, loan, lender, and neighborhood determine whether a foreclosed loan will be cured, worked out in some fashion, result in a short sale or deed-in-lieu of foreclosure, go to auction, or be held as REO, using the Federal Reserve’s proprietary loan level data.