Borrower‐ and Mortgage‐Related Factors Associated With FHA Foreclosures

Bibliographic Data

ID6062430
AuthorsLucy M Delgadillo (0000-0002-5148-045X, Utah State University, corresponding author), Lucy Delgadillo, Amber Gallagher (Georgia Gwinnett College)
Year2006
Volume34
Issue3
Pages204-222
Publication date2006-03-01
Peer ReviewedYes
Open AccessYes
TypeARTICLE
VenueFamily and Consumer Sciences Research Journal (JOURNAL)
Journal identifiersISSN: 1077-727X • E-ISSN: 1552-3934
PublisherWiley (PUBLISHER • GB)
DOI10.1177/1077727x05283600
OpenAlexW2006710558
LanguageEN
Citations received2
References cited12

The study identifies which household factors contribute to the likelihood of foreclosure by responding to the question: What borrower‐related and mortgage‐related factors are correlated with home foreclosure? Data used are from an inventory of active and foreclosed FHAhomes in Utah from the years 2000 to 2001. The sample consisted of 179 cases. The borrower‐related factors included age of borrower, job tenure, self‐employed, race of borrower, first‐time homebuyer, number of dependents, homeownership counseling, and borrower's income. The mortgage‐related factors included loan‐to‐value ratio, payment‐to‐income ratio, back‐end ratio, gift amount, size of down payment, and interest rate. Results revealed that race, front‐end ratio, and interest rate were statistically significant factors associated with the probability of foreclosure. The multiple interaction regression model indicated that the interaction between race and front‐end ratio was statistically significant, which suggests that the effect of front‐end ratio differs between Whites and non‐Whites

Actuarial science · Business · Demographic economics · Economics · Foreclosure · Loan · Payment · Statistics · Financial Literacy, Pension, Retirement Analysis · Housing Market and Economics · Housing, Finance, and Neoliberalism · Mathematics · Finance

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