The Journal of Real Estate Finance and Economics
Volume 20, Issue 3, Article 2 (Abstract)
Title:	The Hazard Rates of First and Second Default
Author:	Brent W. Ambrose and Charles A. Capone
Abstract:	This paper examines hazards of repeated mortgage default, conditional on reinstating out of an initial default episode. Results indicate that subsequent default risk for reinstated borrowers if significantly greater than the risk of first default, especially during the first two years after a default episode. In addition, economic factors helpful in predicting first defaults are not helpful in predicting subsequent default episodes. This has important implications for mortgage investors and servicers as industry foreclosure avoidance efforts intensity.
Keywords:	Mortgage Default, Foreclosure, Hazard Rates, Competing Risks