US Foreclosures Feasibility Project
Purpose Statement & Background
The United States foreclosure crisis is said to be the worst financial disaster since the great depression. (Reinhart, 2008) John A. Tatom, Director of Research at Networks Financial Institute at Indiana State University writes that rising foreclosure filings and excessive personal debt have created the greatest short-term threat to the U.S. economy. This study will examine these and other variables responsible for the rise in foreclosure filings throughout the United States.
The dependent variable, U.S. Foreclosures Filings (US_FORCLSURE) is determined by independent variables, High Un-employment rate (UNEPLY_RATE), high revolving debt (REVOLV_DEBT), divorce (DIVORCE) and Death (DEATH).
The most important independent variable in this relationship is rise in unemployment rates because the more people who lose their jobs the more likely those sample individuals will begin the foreclosure process and eventually lose their home.
Definition of Variables & Data Description
Y = X1 + X2 + X3 + X4
US_FORCLSURE = UNEPLY_RATE + REVOLV_DEBT + DIVORCE + DEATH
Dependent Variable:
a. U.S. Foreclosures Filing (Y: US_FORCLSURE)- The dependent variable, U.S. Foreclosures Filings, is used in the cause and affect relationship presented throughout the project. The following independent variables will be used to determine the most significant factor in U.S. foreclosure filings. This data is collected every month from more than 2,200 counties by RealtyTrac®. RealtyTrac® compiles this nationwide data and reports a count of the total number of properties with at least one foreclosure filing reported.
Primary Independent Variable:
a. Rising Unemployment (X1: UNEPLY_RATE)- Rising unemployment rates is the primary independent variable because I believe that as the national employment rate continues to rise so will the number of foreclosure filings. The data used to represent the relationship was provided by the Bureau of Labor Statistics and
The United States foreclosure crisis is said to be the worst financial disaster since the great depression. (Reinhart, 2008) John A. Tatom, Director of Research at Networks Financial Institute at Indiana State University writes that rising foreclosure filings and excessive personal debt have created the greatest short-term threat to the U.S. economy. This study will examine these and other variables responsible for the rise in foreclosure filings throughout the United States.
The dependent variable, U.S. Foreclosures Filings (US_FORCLSURE) is determined by independent variables, High Un-employment rate (UNEPLY_RATE), high revolving debt (REVOLV_DEBT), divorce (DIVORCE) and Death (DEATH).
The most important independent variable in this relationship is rise in unemployment rates because the more people who lose their jobs the more likely those sample individuals will begin the foreclosure process and eventually lose their home.
Definition of Variables & Data Description
Y = X1 + X2 + X3 + X4
US_FORCLSURE = UNEPLY_RATE + REVOLV_DEBT + DIVORCE + DEATH
Dependent Variable:
a. U.S. Foreclosures Filing (Y: US_FORCLSURE)- The dependent variable, U.S. Foreclosures Filings, is used in the cause and affect relationship presented throughout the project. The following independent variables will be used to determine the most significant factor in U.S. foreclosure filings. This data is collected every month from more than 2,200 counties by RealtyTrac®. RealtyTrac® compiles this nationwide data and reports a count of the total number of properties with at least one foreclosure filing reported.
Primary Independent Variable:
a. Rising Unemployment (X1: UNEPLY_RATE)- Rising unemployment rates is the primary independent variable because I believe that as the national employment rate continues to rise so will the number of foreclosure filings. The data used to represent the relationship was provided by the Bureau of Labor Statistics and
References: Reinhart, V. (2008, March 26). Our Overextended Fed. Wall Street Journal (Eastern Edition), p. A.15. Retrieved February 3, 2009, from ABI/INFORM Global database. (Document ID: 1451528761). Tatom, J. (2008, July). The U.S. Foreclosure Crisis: A Two-Pronged Assault on the U.S. Economy. Networks Financial Institute at Indiana State University, Retrieved February 3, 2009, from http://mpra.ub.uni-muenchen.de/9787/1/2008-WP-10_Tatom.pdf Data: RealtyTrac. (2009). News and Trends Center, RealtyTrac Reports. Retrieved January 20, 2009, from http://www.realtytrac.com/News-Trends/ Primary Independent Variable: National Center for Health Statistics. (2009). Births, Marriages, Divorces, and Deaths, National Vital Statistics Reports. Retrieved January 21, 2009, from http://www.cdc.gov/nchs/products/pubs/pubd/nvsr/nvsr.htm#vol57 Death- National Center for Health Statistics. (2009). Births, Marriages, Divorces, and Deaths, National Vital Statistics Reports. Retrieved January 21, 2009, from http://www.cdc.gov/nchs/data/nvsr/nvsr57/nvsr57_06.htm#tables National Center for Health Statistics