Price Premium and Foreclosure Risk
研究发现，购房时支付的价格溢价会显著增加未来止赎的概率，基于新加坡1989-2000年的房地产交易数据，通过特征定价模型量化了价格溢价。
Many previous studies identify loan, property, borrower and environmental factors that impact the probability of foreclosure. Implicit in these studies is the assumption that the property was purchased at fair value. We question this assumption based on several empirical findings regarding property value uncertainty. In contrast to previous research, we explicitly quantify the price premium from a hedonic pricing model. Using a comprehensive database of real estate transactions in Singapore during 1989–2000, we document a price premium associated with properties that are subsequently foreclosed based on actual sales transactions. In addition, we find that the premium paid at purchase significantly increases the probability of foreclosure. These results are robust and continue to hold after controlling for other property‐specific factors, time‐varying macroeconomic conditions, alternative model specifications and definitions of price premium.