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Results show slow, sometimes absent, recovery for prime borrowers, linked to persistently higher consumer-credit delinquency after foreclosure.",{"@graph":14,"@context":72},[15,34,55],{"@type":16,"itemListElement":17},"BreadcrumbList",[18,23,27,31],{"item":19,"name":20,"@type":21,"position":22},"https://docshare.wps.com","Home","ListItem",1,{"item":24,"name":25,"@type":21,"position":26},"https://docshare.wps.com/template/","Template",2,{"item":28,"name":29,"@type":21,"position":30},"https://docshare.wps.com/template/general/","General",3,{"item":32,"name":10,"@type":21,"position":33},"https://docshare.wps.com/template/foreclosures-wake-the-credit-experiences-of-individuals-following-foreclosure/281497/",4,{"url":32,"name":10,"@type":35,"image":36,"author":41,"headline":10,"publisher":44,"fileFormat":47,"inLanguage":8,"description":12,"dateModified":48,"datePublished":49,"encodingFormat":47,"isAccessibleForFree":50,"interactionStatistic":51},"DigitalDocument",{"url":37,"@type":38,"width":39,"height":40},"https://docshare.wps.com/thumbnails/foreclosures-wake-the-credit-experiences-of-individuals-following-foreclosure/281497.png","ImageObject",442,249,{"name":42,"@type":43},"Ophelia","Person",{"url":19,"name":45,"@type":46},"DocShare","Organization","application/pdf","2026-09-23","2026-09-16",true,{"@type":52,"interactionType":53,"userInteractionCount":26},"InteractionCounter",{"@type":54},"ViewAction",{"@type":56,"mainEntity":57},"FAQPage",[58,64,68],{"name":59,"@type":60,"acceptedAnswer":61},"What primary outcome does the paper analyze after mortgage foreclosure?","Question",{"text":62,"@type":63},"It examines borrowers’ credit experiences, focusing on credit-score changes before and after foreclosure and how recovery compares to pre-delinquency levels.","Answer",{"name":65,"@type":60,"acceptedAnswer":66},"How does foreclosure affect credit scores for borrowers in the results?",{"text":67,"@type":63},"Credit scores decline substantially at entry into foreclosure and remain depressed for several years afterward, with recovery that is slow or may not occur, especially for prime borrowers.",{"name":69,"@type":60,"acceptedAnswer":70},"What mechanisms does the paper suggest for why credit score recovery can be slow?",{"text":71,"@type":63},"It links slow recovery to persistently higher delinquency levels on other consumer credit (such as auto and credit card loans) and to additional persistence of hardship that makes future shocks more difficult to withstand.","https://schema.org",{"og:url":32,"og:type":74,"og:title":10,"og:site_name":45,"og:description":12},"article",{"robots":76,"canonical":32},"index,follow",{"doc_id":78,"site_id":7},281497,1790204841,{"code":4,"msg":81,"data":82},"success",[83,88,93,98,103,108,113,118,123],{"id":84,"doc_module":22,"doc_module_name":25,"category_name":85,"show_sort_weight":86,"slug":87},11,"Presentations",90,"presentations",{"id":89,"doc_module":22,"doc_module_name":25,"category_name":90,"show_sort_weight":91,"slug":92},12,"Resumes",80,"resumes",{"id":94,"doc_module":22,"doc_module_name":25,"category_name":95,"show_sort_weight":96,"slug":97},14,"Invoices",70,"invoices",{"id":99,"doc_module":22,"doc_module_name":25,"category_name":100,"show_sort_weight":101,"slug":102},15,"Posters",60,"posters",{"id":104,"doc_module":22,"doc_module_name":25,"category_name":105,"show_sort_weight":106,"slug":107},16,"Social Media",50,"social-media",{"id":109,"doc_module":22,"doc_module_name":25,"category_name":110,"show_sort_weight":111,"slug":112},17,"Forms",40,"forms",{"id":114,"doc_module":22,"doc_module_name":25,"category_name":115,"show_sort_weight":116,"slug":117},18,"Letters",30,"letters",{"id":119,"doc_module":22,"doc_module_name":25,"category_name":120,"show_sort_weight":121,"slug":122},21,"Paper Templates",5,"papers-templates",{"id":124,"doc_module":22,"doc_module_name":25,"category_name":29,"show_sort_weight":4,"slug":125},158,"general-158",{"code":4,"msg":81,"data":127},{"doc_id":78,"user_id":128,"nickname":42,"user_avatar":129,"doc_module":22,"category_id":124,"category_name":29,"doc_title":10,"doc_description":12,"doc_content":130,"file_id":131,"file_url":132,"file_type":133,"file_size":134,"view_count":22,"is_deleted":4,"is_public":22,"is_downloadable":22,"audit_status":22,"page_count":135,"language":136,"language_code":8,"site_id":7,"html_lang":8,"table_of_contents":137,"faqs":138,"seo_title":139,"seo_description":12,"update_tm":140,"read_time":104},7971461741311,"https://ap-avatar.wpscdn.com/avatar/74000253aff267980c6?x-image-process=image/resize,m_fixed,w_180,h_180&k=1779345379180704826","Finance and Economics Discussion Series Divisions of Research & Statistics and Monetary A􀀋airs Federal Reserve Board, Washington, D.C .  \nForeclosure's Wake: The Credit Experiences of Individuals  \nFollowing Foreclosure  \nKenneth P. Brevoort and Cheryl R . Cooper  \n2010-59  \nNOTE: Sta􀀋 working papers in the Finance and Economics Discussion Series (FEDS) are preliminary materials circulated to stimulate discussion and critical comment. The analysis and conclusions set forth are those of the authors and do not indicate concurrence by other members of the research sta􀀋 or the Board of Governors. References in publications to the Finance and Economics Discussion Series (other than acknowledgement) should be cleared with the author(s) to protect the tentative character of these papers.  \nForeclosure’s Wake: The Credit Experiences of Individuals Following Foreclosure  \nKenneth P. Brevoort􀀍  \nSenior Economist  \nFederal Reserve Board  \n[Kenneth.p.brevoort@frb.gov](Kenneth.p.brevoort@frb.gov)  \nand  \nCheryl R. Cooper  \nResearch Associate II  \nThe Urban Institute  \n[CCooper@urban.org](CCooper@urban.org)  \nNovember 18, 2010  \nAbstract: While a substantial literature has examined the causes of mortgage foreclosure, there has been relatively little work on the consequences of foreclosure for the borrowers themselves. Using a large sample of anonymous credit bureau records, observed quarterly from 1999Q1 through 2010Q1, we examine the credit experiences of almost 350,000 borrowers before and after their mortgage foreclosure. Our analysis documents the substantial declines in credit scores that accompany foreclosure and examines the length of time it takes individuals to return their credit scores to pre-delinquency levels. The results suggest that, particularly for prime borrowers, credit score recovery comes slowly, if at all. This appears to be driven by persistently higher levels of delinquency on consumer credit (such as auto and credit card loans) in the years that follow foreclosure. Our results also indicate that the experiences of individuals whose mortgages entered foreclosure from 2007 to 2009 have followed a similar path to borrowers foreclosed earlier in the decade, though post-foreclosure delinquency rates for the recently foreclosed have been higher and, consequently, credit score recovery appears to be taking longer.  \n􀀍 The opinions expressed in this paper are those of the authors and do not necessarily reflect the views of the Federal Reserve Board or its staff. We thank Bob Avery, Glenn Canner, Beth Kiser, Bob Hunt, Robin Prager, and seminar participants at the Federal Reserve Bank of Philadelphia and Mortgage Foreclosures and the Future of Housing Finance Conference for helpful comments.  \nI. Introduction  \nThe recent surge in mortgage foreclosures has prompted several policy initiatives aimed at modifying delinquent mortgages and helping borrowers remain in their homes. These initiatives have been informed by a voluminous literature that has identified economic shocks to mortgage holders as being a central cause of mortgage delinquency. These shocks, which can include among other things, job loss, divorce, or a sharp decline in the value of the property backing the mortgage, may leave borrowers unable or unwilling to pay their mortgage and consequently lead to default and possibly foreclosure.  \nDespite the substantial literature on the economic shocks that lead to foreclosure, very little is known about whether these shocks have effects on the borrowers that persist beyond the resulting foreclosure. One area in which there may be persistent effects is in future access to credit. Mortgage delinquencies reduce credit scores, which makes obtaining new credit both more difficult and more expensive. This suggests that, regardless of the nature of the economic shock, access to credit will be diminished for a time after the foreclosure. However, if the shock is sufficiently transitory, there is reason to believe that this rest","cbCaiv8xsJYfISLU","https://ap.wps.com/l/cbCaiv8xsJYfISLU","pdf",427832,47,"English","# Abstract\n# I. Introduction\n## Economic shocks and mortgage delinquency\n## Persistent effects and access to credit\n## Study scope and approach\n## Key findings","[{\"question\":\"What primary outcome does the paper analyze after mortgage foreclosure?\",\"answer\":\"It examines borrowers’ credit experiences, focusing on credit-score changes before and after foreclosure and how recovery compares to pre-delinquency levels.\"},{\"question\":\"How does foreclosure affect credit scores for borrowers in the results?\",\"answer\":\"Credit scores decline substantially at entry into foreclosure and remain depressed for several years afterward, with recovery that is slow or may not occur, especially for prime borrowers.\"},{\"question\":\"What mechanisms does the paper suggest for why credit score recovery can be slow?\",\"answer\":\"It links slow recovery to persistently higher delinquency levels on other consumer credit (such as auto and credit card loans) and to additional persistence of hardship that makes future shocks more difficult to withstand.\"}]","Foreclosure’s Wake - The Credit Experiences of Individuals Following Foreclosure | PDF",1789566466]