The value of foreclosed property

Anthony Pennington-Cross

No 2004-022, Working Papers from Federal Reserve Bank of St. Louis

Abstract: This paper examines the expected price appreciation of distressed property and compares it to the prevailing metropolitan area appreciation rate. The results show that the simple fact that the property is foreclosed indicates that it will be sold at a substantial discount (appreciate less than expected). The magnitude of the discount is sensitive to loan characteristics, legal restrictions, housing market conditions, and the bargaining position of the selling institution.

Keywords: Real; property (search for similar items in EconPapers)
Date: 2004
New Economics Papers: this item is included in nep-ure
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Citations: View citations in EconPapers (18)

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Related works:
Journal Article: The Value of Foreclosed Property (2006)
Journal Article: The Value of Foreclosed Property (2006)
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