The aim of the study is to explain if the foreclosure effect on prices is explained by a lower quality of foreclosed … estimate the impact of foreclosure on home prices in Florida and Indiana from 2000 to 2008. We employ a model of housing demand …-specific quality explains the vast majority of the foreclosure effects on house prices. Our results also show that foreclosed homes in …

commonly believed, lead to a substantial increase in homeownership by minorities but instead generated turnover in properties … owned by minority residents. Furthermore, we argue that the particularly dire foreclosure situation in urban neighborhoods …