FEDERAL RESERVE BANK of ATLANTA WORKING PAPER SERIES Unemployment, Negative Equity, and Strategic Default

This paper previously circulated under the title “What Actually Causes Mortgage Defaults, Redefaults, and Modifications,” available on February 2, 2012, at ssrn.com/abstract=1997890. Herkenhoff thanks the Ziman Center for funding. The views expressed here are the authors ’ and not necessarily those of the Federal Reserve Banks of Atlanta or Boston or the Federal Reserve System. Any remaining errors are the authors ’ responsibility