Tag: strategic default
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How does negative housing equity interact with the decision to default?
Michael Seiler thinks it might be this way… see his paper below for more details. Seiler, Michael Joseph, Determinants of the Strategic Mortgage Default Cumulative Distribution Function (June 20, 2014). Available at SSRN: http://ssrn.com/abstract=2465059 orhttp://dx.doi.org/10.2139/ssrn.2465059
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Strategic Mortgage Default: What does the research tell us?
What do we know about strategic (could meet obligations but choose not to ) defaulters in relation to mortgages? As I argued earlier, in the Irish case very little is known. There is a little more information for the USA, but we should be very careful about blindly or even carefully transposing US experience to…
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Strategic Defaults in Irish Mortgages – What do and dont we know?
Irish residential and Buy to let mortgages are in a mess. The latest Central Bank data indicate that by value 16.5% of all residential mortgages are in arrears accounting for 12.3% of all mortgages. The charts below show the evolution of this situation. Note that these are only for residential mortgages. Buy to Let are a…