The Value of Foreclosed Property

Pennington-Cross, Anthony

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The Value of Foreclosed Property

Journal of Real Estate Research, Vol. 28, No. 2, 2006

22 Pages Posted: 20 Dec 2006

See all articles by Anthony Pennington-Cross

Anthony Pennington-Cross

Marquette University - Dept. of Finance

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Abstract

This paper examines the expected price appreciation of distressed property and compares it to the prevailing metropolitan area appreciation rate. Whether due to individual property or local area heterogeneity in appreciation, the results show that foreclosed property appreciates less than the area average appreciation rate. The magnitude of the deviation is sensitive to loan characteristics, legal restrictions, housing market conditions and marketing time.

Keywords: price, appreciation, distressed, foreclosed

JEL Classification: R11, R21, L85, E31, D23

Suggested Citation: Suggested Citation

Pennington-Cross, Anthony N., The Value of Foreclosed Property. Journal of Real Estate Research, Vol. 28, No. 2, 2006, Available at SSRN: https://ssrn.com/abstract=952406