 Does Foreclosure Prevention Counseling Work?Jerry Anthony and Thomas P. Verghese Housing Policy Debate, 2019, vol. 29, issue 4, 627-644 Abstract: The United States experienced its worst housing market collapse since the Great Depression during 2006–2010. This collapse triggered the Great Recession. During the housing market collapse and the Great Recession, about 5.5 million homeowners in the United States lost their homes to foreclosure. In this article, we present findings about the effectiveness of foreclosure prevention counseling. Although many recent studies have examined this issue, almost all have major methodological shortcomings that render their findings less useful for policymakers than they could have been. Using data from a national sample and employing a before–after research design with pre- and postcounseling data for several months, our study avoids the pitfalls of other recent works. We find that counseling is effective in preventing foreclosure for about 39% of homeowners counseled. We identify a few factors that correlate with a positive postcounseling outcome. The findings of this study could improve ongoing foreclosure counseling programs, and thereby assist in stabilizing and reviving the U.S. housing market. Our findings could also improve the design of future foreclosure counseling programs. Date: 2019 Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:taf:houspd:v:29:y:2019:i:4:p:627-644 Ordering information: This journal article can be ordered from DOI: 10.1080/10511482.2019.1568278 Access Statistics for this article Housing Policy Debate is currently edited by Tom Sanchez, Susanne Viscarra and Derek Hyra More articles in Housing Policy Debate from Taylor & Francis Journals |
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