Foote, Christopher L.; Gerardi, Kristopher; Götte, Lorenz - 2009
the role of negative equity in causing foreclosures is over-
whelming and incontrovertible. Household-level studies show …
would have to pay for shelter in the event of default. The benefit to the borrower includes
the option in the next period to … considered too much (as low-income housing studies often claim), then
one has to set the ex ante criterion well below 33 percent …