Rethinking Foreclosure Dynamics in a Sunbelt City: What Parcel-Level Mortgage Data Can Teach Us About Subprime Lending and Foreclosures

Abstract

The dynamics of mortgage foreclosures can be studied by examining parcel-level sales and mortgage data, alongside aggregate data reporting on defaults. This research relies on such microlevel analysis to explore three issues in high-foreclosure census tracts located in Hillsborough County, Florida. First, it notes the prevalence of investor-owners in high-foreclosure areas. Second, it considers the high percentage of adjustable rate mortgages identified in these areas and the frequency with which mortgage defaults occur before interest rate adjustments take effect. Third, it suggests that high levels of investor ownership and extreme volatility of housing and mortgage markets in these neighborhoods complicate the analysis of, and solutions to, the foreclosure crisis.