R. Kelley Pace, director of the Real Estate Research Institute and professor in LSU’s Department of Finance, and Shuang Zhu, a doctoral student in the LSU Department of Finance, penned “The Cost of Delaying Foreclosures,” which appeared in the New York Times, according to an LSU news release.
The piece details the inherit problem of providing cost effecting and useful aid to struggling borrowers, while not creating any unintended adverse consequences.
“Actual foreclosure delays have been increasing,” the duo wrote. “In 2003, none of the 16 states that we examined had over 12 months of delay. By 2008 (still before the documentation crisis), 50 percent of the states had a delay of over one year. In our research on this topic, we found that foreclosure delays had a statistically and economically significant impact on default.”
The article ran July 11 and can be viewed online at http://www.nytimes.com/roomfordebate/2011/07/11/hanging-on-to-houses/the-cost-of-delaying-foreclosures