distressed home
157427474
Foreclosure loss severity and distressed home mortgage refinance
Purpose The problem in alleviating homeowner mortgage distress through refinance is how to achieve meaningful alleviation without prospectively harming the financier. The problem revolves around two parameters from real estate finance the probability that the distress leads to foreclosure and resulting foreclosure loss severity for the financier if foreclosure does occur. Previous analysis focuses on reducing the probability that homeowner distress leads to foreclosure. By contrast, the purpose of this paper is to focus on reducing foreclosure loss severity. Design/methodology/approach The study develops a new intuitive formula for foreclosure loss severity to quantify its dependence on transaction costs. The study shows that foreclosure loss severity reduction is feasible by introducing a new refinancing instrument that lowers foreclosure transaction costs and applying property law to derive the structure of the refinancing instrument. Findings Foreclosure loss severity reduction can subsidize concessions on scheduled payments for homeowners with arbitrarily poor credit without prospective harm to the financier. Research limitations/implications Quantification of mortgage distress relief is limited to distressed mortgages described by representative parameter values from various government studies. Practical implications For most distressed homeowners, payment and principal reductions could exceed those available from the recent government programs. Social implications Implementation should significantly enlarge the pool of homeowners eligible for mortgage distress relief. Originality/value The mortgage refinance is qualitatively different from that available under existing government refinance programs because it is based on an arms length exchange of property rights that makes market sense regardless of whether the refinancing results in subsequent homeowner default.
Richard Graff
167979387
Distressed Home Sales: Temporary Discount or Permanent Devaluation
In this paper we distinguish the two sources of price discount associated with foreclosure sales, temporary liquidity discount as a result of the transaction that typically seeks a quick resolution in a thin market, and permanent unobserved shock to property value at the property or neighborhood level. By finding the pair of regular (non distressed) transactions before and after a given foreclosure sale for the same property, we compare the holding period returns relative to other properties that did not experience foreclosure sales. Thus, the temporary effect introduced by the foreclosure sale transaction is eliminated and we observe only the permanent return differential.We first employ the commonly used repeat sales methodology by constructing a unique repeat sales dataset for Connecticut from 1988 to 2011 in which those ever foreclosed properties are identified and the corresponding pre and post foreclosure regular sales are paired to construct repeat sales pairs together with other repeat sales pairs from never foreclosed properties. Various control factors are used to identify these properties. At first glance, in general those ever foreclosed properties (REO properties do not appreciate significantly differently from the non distressed properties, seemingly suggesting the discount associated with a distressed sale is a temporary transaction induced effect and does not persist over time. However, close examination reveals that permanent appreciation difference does exist and varies with the timing of the distressed sale relative to the housing market cycle. Compared with normal properties, properties that had an REO sale appreciate less if the distressed sale was during the pre boom period or the most recent downturn, yet more if the distressed sale was during the boom period.In addition, we apply a matching approach to construct a control group of regular properties that are similar to the group of REO properties in terms of housing characteristics, location, and time of sales. Matching reduces the selection bias arisen from the potential systematic difference between foreclosed and non distressed properties. Moreover, matching mitigates the concern about disparities in housing appreciation among different housing market segments (e.g. properties of different price tiers) by balancing the characteristics between control and treatment groups. The results confirm those from the repeat sales approach: less appreciation is associated with those properties foreclosed in the pre boom period, evidencing that there might be some unobserved property or neighborhood problem that causes the property to appreciate slower, which may have contributed to the mortgage's default. Further, the appreciation premium associated with properties foreclosed during the housing boom period is positive but less significant after the matching; while those foreclosed post boom show a persistent price discount, indicating these foreclosures are also likely caused by collateral risk, though credit risk dominates.Our results contribute to the understanding of the foreclosure discount. Observed price or growth differential for these properties during the foreclosure sale should be viewed as the combination of a persistent component and a temporary one. Potentially a property's foreclosure history can be used in an automated home valuation model or default forecast model to control for the price appreciation differential that is not captured by other observables.
Yanqin Chang Xiaoming Li
155345414
The Principal Principle: Optimal Modification of Distressed Home Loans
Lenders will often restructure a loan rather than foreclose on a property because it is less value destroying. A loan modification primarily entails a change in the loan rate, principal balance and/or remaining time to maturity. We analyze optimal loan modification schemes in a stochastic home price and stochastic interest rate environment. Lenders maximize their loan values by managing the value of the borrower's option to default on the loan and prepayment option. We argue that, controlling for the borrower's ability to pay, loan modifications via rate reductions and maturity extensions are ineffective, leading to dissipation in loan value to the lender, and resulting in a high probability of re default by homeowners even after modification of their loans. In contrast, loan write downs (the Principal Principle) not a favored recipe, and sometimes prohibited by covenants, are value maximizing for the lender. A useful structuring device, the shared appreciation mortgage, enhances the ability to pay, mitigates adverse selection, and reduces the present value of expected deadweight foreclosure costs.
Sanjiv Ranjan Das
199368157
Tracing the Source of Liquidity for Distressed Housing Markets
We show that profit seeking institutional investors can provide valuable liquidity and spur the recovery of distressed housing markets. Using a quasi natural experiment wherein investors purchased pre packaged distressed home portfolios from the government sponsored enterprises, we find that properties located within 0.25 miles of bulk sold properties sell for 1.4% more than homes located farther away. This spillover effect is greater for foreclosed homes (4.3% homes that are similar to the bulk sold homes (2.5% and homes in highly distressed neighborhoods (7.4% Our results highlight asset disposition through pooling and institutional participation as a potential market driven channel for the recovery of distressed housing markets.
Rohan Ganduri Steven Chong Xiao Serena Wenjing Xiao
40523826
Evaluation of a family nursing intervention for distressed pregnant women and their partners: a single group before and after study.
AIM To report a study of the effects of an antenatal family nursing intervention for emotionally distressed women and their partners. BACKGROUND High levels of depressive symptoms and anxiety are common in pregnant women, and their partners are likely to suffer from a higher degree of these symptoms than those of non distressed women. Maternal anxiety and depressive symptoms influence the development of the foetus and child negatively. Distress reducing interventions for couples are scarce. DESIGN The design was a pre and post test single group quasi experiment. METHODS All women distressed during the last two trimesters of pregnancy were referred by midwives to a family nursing home visiting service in a primary care setting in Iceland. They were invited to participate in the study from November 2007 September 2009. The final sample was 39 couples. Assessment of distress was through self reporting of depressive symptoms and anxiety, self esteem, and dyadic adjustment. The couple received four home visits that were guided by the Calgary Family Nursing Model. RESULTS Women experienced a higher degree of distress than men before the intervention. Couple's distress was interrelated, and improvement was significant on all indicators after the intervention. CONCLUSION Healthcare professionals who care for distressed expectant women should attend to their partners' mental health status. The Calgary Family Nursing Model is an appropriate guide for nursing care of distressed prospective couples in a primary care setting.
Journal of advanced nursing
Marga Thome Stefania B Arnardottir
3922629
Proxy rated quality of life of care home residents with dementia: a systematic review
ABSTRACT Background: Quality of life (QoL) is an important outcome for people with dementia living in care homes but usually needs to be rated by a proxy. We do not know if relative or paid carer proxy reports differ. We conducted the first systematic review and meta analysis of data investigating whether and how these proxy reports of QoL differ. Methods: We searched four databases: Medline, Embase, PsychInfo, and CINAHL in October 2015 with the terms: dementia, QoL, proxy, and care home. Included studies either compared proxy QoL ratings or investigated the factors associated with them. We meta analyzed data comparing staff and family proxy rated QoL. Results: We included 17/105 papers identified. We found no difference between global proxy ratings of QoL (n 1,290; pooled effect size 0.06 (95% CI 0.08 to 0.19) Studies investigating factors associated with ratings (n 3,537) found family and staff ratings correlated with the resident's physical and mental health. Staff who were more distressed rated resident QoL lower. Relatives rated it lower when the resident had lived in the care home for longer, when they observed more restraint, or contributed more to fees. Conclusions: Relatives and staff proxy QoL ratings share a clear relationship to resident health and overall ratings were similar. Rater specific factors were, however, also associated with scores. Understanding why different raters consider the QoL of the same person differently is an important consideration when evaluating the meaning of proxy rated QoL. Proxy raters' backgrounds may affect their rating of QoL.
International Psychogeriatrics
Sarah Robertson Claudia Cooper Juanita Hoe Olivia Hamilton Aisling Stringer Gill Livingston
37430683
Randomised trial of expressive writing for distressed metastatic breast cancer patients
Women with metastatic breast cancer and significant psychological distress (N 87) were assigned randomly to engage in four home based sessions of expressive writing or neutral writing. Women in the expressive writing group wrote about their deepest thoughts and feelings regarding their cancer, whereas women in the neutral writing group wrote about their daily activities in a factual manner. No statistically significant group differences in existential and psychological well being, fatigue and sleep quality were found at 8 weeks post writing. However, the expressive writing group reported significantly greater use of mental health services during the study than the neutral writing group (55% vs. 26% respectively; p 0.05) Findings suggest that expressive writing may improve the uptake of mental health services among distressed cancer patients, but is not broadly effective as a psychotherapeutic intervention.
Psychology health
Catherine E Mosher Katherine N DuHamel Joanne Lam Maura N Dickler Yuelin Li Mary Jane Massie Larry Norton
153734199
Deconstructing distressed property spillovers: The effects of vacant, tax delinquent, and foreclosed properties in housing submarkets
In this empirical analysis, we estimate the impacts of property tax delinquency, vacancy, and foreclosures on the value of neighboring homes. We demonstrate that these externalities differ in high and low poverty submarkets. Numerous studies have estimated the externality of foreclosures. These papers theorize that the foreclosure impact works partially through creating vacant and neglected homes. To our knowledge, this is only the second attempt to estimate the impact of vacancy itself and the first to use tax delinquency as a measure of property neglect. We link vacancy observations from Postal Service data with property tax delinquency and sales data from Cuyahoga County, Ohio. We find that an additional property within 500ft that is vacant or delinquent reduces a home's selling price by 1 to 2% In low poverty submarkets, the negative impact of a home that is both vacant and delinquent is 4.6% Low poverty submarkets penalize a sale near a tax current recent foreclosure by 4 to 8% In high poverty submarkets, we observe positive correlations of sale prices with vacant foreclosures. This may reflect lenders selectively foreclosing only on relatively well maintained properties.
Stephan D Whitaker Thomas J Fitzpatrick
74026858
Home Based Interventions Targeting Persons with Dementia: What Is the Evidence and Where Do We Go from Here?
Most persons with dementia live at home either alone or with family members over the course of this long, progressive and terminal condition. With disease progression, most persons will experience a wide range of health and quality of life challenges that remain unaddressed by the health care system. However, common symptoms and concerns such as pain, sleep disturbances, infections, behavioral symptoms, fall risk, home hazards, distressed families, are all amenable to intervention and hence improvement. This chapter provides a systematic review of the extant research on home based interventions that are designed to improve the quality of life of individuals living with dementia. We evaluate the relative merits and limitations of interventions tested in randomized trials in order to offer suggestions for advancements in this area. Given the long trajectory of dementia and that most persons live and age at home in their communities with this condition, developing, testing and implementing approaches to improving quality of life related outcomes in the home setting is of utmost importance.
Laura N Gitlin Nancy A Hodgson Scott Seung W Choi
33271379
The Effects of Foreclosure Counseling for Distressed Homeowners
In the face of the housing market downturn of the late 2000s, policymakers promoted third party mortgage default counseling as a way to help people at risk of losing their homes to avoid foreclosure. Using a unique data set of monthly loan payments remitted to investors combined with administrative data from a national counseling agency, this study estimates the effects of default counseling on the probability that troubled mortgage borrowers will lose their homes to foreclosure. Borrowers are actually more likely to miss loan payments after receiving counseling, but the probability of losing a home to foreclosure drops after counseling, suggesting that counseling policies may be beneficial during housing crises. C 2012 by the Association for Public Policy Analysis and Management.
John M Collins Maximilian D Schmeiser