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The Short Sale Stigma

Author

Listed:
  • Kimberly R. Goodwin

    (The University of Southern Mississippi)

  • Ken H. Johnson

    (Florida Atlantic University)

Abstract

Despite a recent upturn, housing prices remain in flux in most cities nationwide. Lenders are still left dealing with a glut of distressed properties. They can choose to foreclose on the property or allow the owner/mortgagor to attempt to sell the property for less than the outstanding balance of the mortgage in a short sale agreement. The best way to clear the market of distressed properties is an important policy question. This is the first study to examine not only the price and time on market effect of being a short sale but also whether the short sale process itself creates a market stigma.

Suggested Citation

  • Kimberly R. Goodwin & Ken H. Johnson, 2017. "The Short Sale Stigma," The Journal of Real Estate Finance and Economics, Springer, vol. 55(4), pages 416-434, November.
    • Handle: RePEc:kap:jrefec:v:55:y:2017:i:4:d:10.1007_s11146-016-9571-2
    DOI: 10.1007/s11146-016-9571-2
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    References listed on IDEAS

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    1. Kimberly Goodwin & Ken Johnson & Leonard Zumpano, 2012. "Minimum Service Requirements, Limited Brokers and Menuing of Services," The Journal of Real Estate Finance and Economics, Springer, vol. 45(2), pages 471-490, August.
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    Cited by:

    1. Marcus T. Allen & Justin D. Benefield & Christopher L. Cain & Norman Maynard, 2024. "Distressed Property Sales: Differences and Similarities Across Types of Distress," The Journal of Real Estate Finance and Economics, Springer, vol. 68(2), pages 318-353, February.
    2. Marcus T. Allen & Justin D. Benefield & Ronald C. Rutherford, 2023. "Co-Listing Strategies: Better Transaction Outcomes?," The Journal of Real Estate Finance and Economics, Springer, vol. 67(3), pages 517-544, October.
    3. Arnab Biswas & Hamilton Fout & Anthony Pennington-Cross, 2023. "Mortgage Losses under Alternative Property Disposition Approaches: Deed-in-Lieu, Short Sales, and Foreclosure Sales," The Journal of Real Estate Finance and Economics, Springer, vol. 66(3), pages 603-635, April.

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