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

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.


Issue Date:
1987-07
Publication Type:
Journal Article
PURL Identifier:
http://purl.umn.edu/32472
Published in:
Western Journal of Agricultural Economics, Volume 12, Number 1
Page range:
35-41
Total Pages:
7




 Record created 2017-04-01, last modified 2017-08-25

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