@article{7f5f412f8dbe47fdabb0ba40d55848cf,
title = "Forced moves and home maintenance: The amplifying effects of mortgage payment burden on underwater homeowners",
abstract = "Although well-known that high current loan-to-value ratio (CLTV) is necessary for mortgage default, the amplifying effect of high payment-to-income ratios (PTI) that can force families to move has received limited attention. Using the 1985–2013 American Housing Survey panel, we show that high CLTV by itself has little effect on mobility, but high PTI prompts families to move and especially so when CLTV is high. Evidence also indicates that high PTI and CLTV discourage home maintenance. Our estimates suggest that loan modifications that lower PTI will likely be more effective at helping underwater families to remain in their homes and avoid mortgage default as compared to policies that lower CLTV.",
keywords = "maintenance, mobility, mortgage default, payment burden",
author = "Harding, {John P.} and Jing Li and Rosenthal, {Stuart S.} and Xirui Zhang",
note = "Funding Information: Helpful comments are gratefully acknowledged from participants at the Singapore Management University conference on urban and regional economics, December 2019, two anonymous reviewers, and the editor. Rosenthal thanks the Center for Policy Research at Syracuse University for support for this project and Zhang acknowledges support from Fundamental Research Funds for the Central Universities, No. 20720191037. Any errors are those of the authors. Funding Information: Helpful comments are gratefully acknowledged from participants at the Singapore Management University conference on urban and regional economics, December 2019, two anonymous reviewers, and the editor. Rosenthal thanks the Center for Policy Research at Syracuse University for support for this project and Zhang acknowledges support from Fundamental Research Funds for the Central Universities, No. 20720191037. Any errors are those of the authors. Publisher Copyright: {\textcopyright} 2021 American Real Estate and Urban Economics Association",
year = "2022",
month = jun,
day = "1",
doi = "10.1111/1540-6229.12361",
language = "English (US)",
volume = "50",
pages = "498--533",
journal = "Real Estate Economics",
issn = "1080-8620",
publisher = "Wiley-Blackwell",
number = "2",
}