FMHA'S EFFORTS AGAINST DELINQUENT BORROWERS: PROPERTY INTERESTS AND TRANSACTION COSTS

Terence Centner and Fred C. White

Western Journal of Agricultural Economics, 1987, vol. 12, issue 01, 7

Abstract: A recent judicial decision has precluded the Farmers Home Administration from employing nonjudicial foreclosure proceedings in some states. Characteristics of FmHA loans and borrowers suggest that a potential "hold up" problem exists whereby borrowers may cause the value of their mortgaged properties to diminish below the outstanding balance of the loan. Empirical results of a survey show that the preclusion of nonjudicial foreclosure increased FmHA's direct losses from delinquent borrowers.

Keywords: Agricultural; Finance (search for similar items in EconPapers)
Date: 1987
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Persistent link: https://EconPapers.repec.org/RePEc:ags:wjagec:32472

DOI: 10.22004/ag.econ.32472

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