Regional Economic Stability and Mortgage Default Risk in the Netherlands

This paper investigates the relationship between regional economic diversification and stability, and residential mortgage default risk in the Netherlands. To describe and measure regional economic diversity and stability, methods from both the regional economics and the industrial economics literature are used. All measures are based on regional employment characteristics. Mortgage default rates were obtained from a database of the population of insured mortgage defaults in the Netherlands from 1983 through 1990. To test the relationship between the measures and mortgage default risk, cross sectional Seemingly Unrelated Regression was used. The paper concludes that the employed measures explain regional mortgage default rates to a significant extent, and that stability measures outperform diversity measures. Copyright American Real Estate and Urban Economics Association.

Mortgage Default in Local Markets

Peer Reviewedhttp://deepblue.lib.umich.edu/bitstream/2027.42/75179/1/1540-6229.00731.pd

The Conditional Probability of Foreclosure: An Empirical Analysis of Conventional Mortgage Loan Defaults

This paper analyzes the factors affecting the conditional probability that defaulted residential mortgage loans will foreclose. We analyze a large national sample of conventional loans, which have been in default at least once during the 1988 to 1994 period. For such loans, lenders and borrowers either individually or jointly make choices which lead to the following outcomes: (1) resumption of payments, (2) termination by prepayment, or (3) foreclosure. Our estimates of a logit model indicate that termination option values and local area economic and housing market conditions affect default resolution probabilities. Perhaps more importantly, simulations using the logit model indicate that the efficiency of the default resolution process may be substantially improved by legal and regulatory reforms. Copyright 2004 by the American Real Estate and Urban Economics Association

A Normalized Citation Analysis of Real Estate Journals

This study presents an analysis of the citation patterns and rankings for journals in real estate and related areas for the period 1990-1995. Journals were ranked based on the number of times they were cited in four base journals with adjustments for journal size and longevity. The results show that "Real Estate Economics" is the most cited journal among real estate publications, followed closely by the "Journal of Real Estate Finance and Economics" and the "Journal of Real Estate Research". A temporal analysis reveals a shift in citations, over the time period, away from the traditional economics and practitioner-oriented journals to the academic real estate journals. Copyright American Real Estate and Urban Economics Association.

The Price Effects of Cash versus Mortgage Transactions

This paper investigates the price effects of cash versus mortgage transactions. Our hypothesis that home sales involving all-cash transactions will sell at discount is borne out by the results of this study. Analyzing a sample of comparable row home dwelling units, we find that all-cash transactions are associated with roughly a 13% price discount relative to transactions involving financing terms that are typical of the market. Cash is King. The findings are consistent with theories regarding buyer-seller behavior. Copyright American Real Estate and Urban Economics Association.