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.