A Duration Analysis of Foreclosures to Sheriff Sales in Light of the Financial Crisis

The purpose of this paper is to address the efficiency of turning over homes that have gone into foreclosure. For the town of Muskego, Wisconsin, the number of homes going to foreclosure has decreased from the pinnacle of the housing crisis. Furthermore, the likelihood of a house going to sheriff sale after being foreclosed upon has gradually decreased from this point in time as well. This paper employs a probit model to determine the likelihood that a foreclosed home will go to sheriff sale compared to the reference years (2001-2004). From the initial stages of the housing crisis, homes in foreclosure were more likely to go to sheriff sale compared to the reference years, but this effect diminishes over time. Furthermore, a hazard model is implemented which confirms the results of the probit from a duration perspective.


Issue Date:
2015
Publication Type:
Journal Article
Record Identifier:
http://ageconsearch.umn.edu/record/243987
PURL Identifier:
http://purl.umn.edu/243987
Published in:
Journal of Regional Analysis and Policy, Volume 45, Issue 2
Page range:
152-162




 Record created 2017-04-01, last modified 2018-01-23

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