Before revision:  For typical foreclosure costs, we find that contracts with automatic balance adjustments become preferable to the traditional fixed rate mortgage at contract rate spreads of approximately 50-100 basis points , depending on how far prices must fall before adjustments are made.
After revision:  For typical foreclosure costs, we find that contracts with automatic balance adjustments become preferable to the traditional fixed rate contracts at mortgage rate spreads between 50-100 basis points , depending on how far prices must fall before adjustments are made.