The Effects of Non-Recourse Mortgages on Default Risks and Households’ Surplus†
We study whether a default option attached to non-recourse mortgages improves borrowers’ surplus from mortgage financing. By defaulting on mortgage debt, borrowers can save their non-collateralized income from being foreclosed. In exchange, borrowers must forgo non-monetary surplus from retaining an...
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| Format: | Article |
| Language: | English |
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Korea Development Institute
2018-08-01
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| Series: | KDI Journal of Economic Policy |
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| Online Access: | https://doi.org/10.23895/kdijep.2018.40.3.69 |