I study the effect of removing repossession risk on a mortgagor's decision to default. Reducing default costs may result in strategic default, particularly during crises when homeowners can be substantially underwater. I analyze difference‐in‐differences variation in repossession risk generated by an unexpected legal ruling in Ireland that prohibited collateral enforcement on delinquent residential mortgages originated before a particular date. I estimate that borrowers defaulted by 0.3 percentage points more each quarter after the ruling, a relative increase of approximately one‐half. High loan‐to‐value ratios and low liquidity are associated with a larger treatment effect, suggesting both equity and consumption‐based motivations.

中文翻译：

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收回风险对抵押违约的影响

我研究了消除收回风险对抵押人违约决定的影响。减少违约成本可能会导致战略性违约，尤其是在危机中房主可能基本上处在水下的情况下。我分析了爱尔兰一项意外的法律裁决所产生的收回资产风险的差异差异，该裁决禁止对特定日期之前产生的拖欠住宅抵押进行抵押执行。我估计，裁定后，借款人每季度违约率增加0.3个百分点，相对增加了约一半。较高的贷款对价值比率和较低的流动性与较大的处理效果相关，这表明基于股权和基于消费的动机。