The Influence of Foreclosure Delays on Borrowers' Default Behavior
基于贷款层面数据，研究预期止赎延迟如何影响借款人违约倾向，发现延迟显著增加违约概率，尤其在负资产情况下，对政策制定有参考价值。
This paper conducts loan‐level analysis to investigate the influence of expected foreclosure delay on a borrower's default propensity. We include the actual foreclosure times in the analysis to capture the dynamic nature of foreclosure duration. Consistent with theoretical predictions, we find a statistically and economically significant impact of foreclosure delay on borrower default behavior. In the current market condition where many borrowers have negative equity, the increase in delay may make default an optimal choice for more borrowers. The negative effect of increased foreclosure delay may need to be considered when devising policies to aid troubled borrowers.