Foote, Christopher L.; Gerardi, Kristopher; Götte, Lorenz - 2009
-level studies show that the foreclosure hazard
for homeowners with positive equity is extremely small but rises rapidly as equity … borrower
would have to pay for shelter in the event of default. The benefit to the borrower includes
the option in the next … considered too much (as low-income housing studies often claim), then
one has to set the ex ante criterion well below 33 percent …