Thursday, June 3, 2010

How long should you wait before you evict a deliquent homeowner?

This is an extent decision that uses marginal analysis to balance two opposing forces:
...too little time in the foreclosure process, [means that] some borrowers are unable to recover from relatively mild setbacks before they lose the home ..., and too much time in the foreclosure process, [means] that the borrower is incented to let the home go to foreclosure sale during which no mortgage payments are made (in essence, free rent for a significant time).

270 days is the optimal time.

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