Determinants of Mortgage Default and Consumer Credit Use : The Effects of Foreclosure Laws and Foreclosure Delays

@inproceedings{Haughwout2015DeterminantsOM,
  title={Determinants of Mortgage Default and Consumer Credit Use : The Effects of Foreclosure Laws and Foreclosure Delays},
  author={Andrew Haughwout and Andrew Hayashi},
  year={2015}
}
  • Andrew Haughwout, Andrew Hayashi
  • Published 2015
The mortgage default decision is part of a complex household credit management problem. We examine how factors affecting mortgage default spill over to other credit markets. As home equity turns negative, homeowners default on mortgages and HELOCs at higher rates, whereas they prioritize repaying credit cards and auto loans. Larger unused credit card limits… CONTINUE READING