The Post-Foreclosure Experience of US Households

Real Estate Economics, Forthcoming

Posted: 22 Feb 2012

See all articles by Raven Molloy

Raven Molloy

Board of Governors of the Federal Reserve System

Hui Shan

Board of Governors of the Federal Reserve System

Date Written: February 21, 2012

Abstract

Despite the recent flood of foreclosures on residential mortgages, little is known about what happens to borrowers’ households after their mortgage has been foreclosed. We study the post-foreclosure experience of U.S. households using a unique dataset based on the credit reports of a large panel of individuals from 1999 to 2010. Although foreclosure considerably raises the probability of moving, the majority of post-foreclosure migrants do not end up in substantially less desirable neighborhoods or more crowded living conditions. These results suggest that, on average, foreclosure does not impose an economic burden large enough to severely reduce housing consumption.

Keywords: foreclosure, migration, household formation

Suggested Citation

Molloy, Raven and Shan, Hui, The Post-Foreclosure Experience of US Households (February 21, 2012). Real Estate Economics, Forthcoming. Available at SSRN: https://ssrn.com/abstract=2008945

Raven Molloy (Contact Author)

Board of Governors of the Federal Reserve System ( email )

20th Street and Constitution Avenue NW
Washington, DC 20551
United States

Hui Shan

Board of Governors of the Federal Reserve System ( email )

20th Street and Constitution Avenue NW
Washington, DC 20551
United States
(202) 452 3491 (Phone)
(202) 728 5887 (Fax)

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