homeownership, the nature of the housing stock, and the organization of residential activity. We start by providing some background … turnover, and housing investment. We describe spatial patterns in foreclosure and summarize the evidence for foreclosure …

. Empirically, we find a foreclosure increases a nearby home's time-on-market by approximately 30%, on average, which is primarily … liquidity effects. However, when there is no surprise and a nearby foreclosure remains through the entire marketing period …

constraints. During housing busts, longer selling times spill over into higher foreclosure risk, thereby magnifying the response …, the reverse occurs. Based on these insights, I consider a foreclosure reform that makes all mortgages full recourse, and I …