Abstract
About one third of states in the U.S. offer the right of statutory redemption to a defaulting mortgagor who can reclaim his/her foreclosed property within a certain period of time, usually lasting for one month to one year. We derive a closed-form solution of a buyer's decision at the foreclosure sale, which predicts that the buyer is less likely to purchase in states with statutory redemption than in states without it. In states with statutory redemption, a buyer is less likely to purchase if the redemption period lasts longer or housing price inflation fluctuates more severely because the buyer will then be hurt more by the mortgagor who owns more valuable repurchasing option.
Sign-in/Register to access full text options 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
