Millions of homeowners lost their homes in the recent recession and still more continue to enter the foreclosure process with the potential for disrupting local neighborhoods and communities. The condition of foreclosed properties, population migration patterns, and the depletion of local government assets work against recovery efforts. A stable housing market and the return of home sales to healthy levels remain elusive.
The effects of foreclosure on individual homeowners are vastly different from the effects on overall markets. Families lose shelter, their financial footing, and the ability to use home equity to start a business, go back to school, and save for their retirement or inter-generational wealth transfers. Many homeowners have fallen victim to foreclosure rescue and loan modification scams.
In response to the foreclosure crisis, the Federal Reserve Bank of San Francisco anticipates and seeks to mitigate unnecessary foreclosures and the loss of homeownership, prevent foreclosure-related rescue and real estate scams, and enforce responsible lending. We provide valuable regional responses to local and regional community partners for families facing personal and financial hardships, for example, by supporting the work of counseling services in reaching distressed borrowers with information on programs for personal financial recovery.
In addition, through our Foreclosure Resource Center, we provide information on programs and tools for preventing, intervening and mitigating foreclosure.
Housing Market Recovery in the 12th District: Implications for Low- and Moderate-Income Communities
Research Brief (August 2013)
The Subprime Crisis in Suburbia: Exploring the Links Between Foreclosures and Suburban Poverty
Working Paper 2013-02 (February 2013)
“Who Receives a Mortgage Modification? Race and Income Differentials in Loan Workouts”
Working Paper, 2010-07 (December 2010)
Federal Reserve Bank Resources
Addressing the Impact of the Foreclosure Crisis: Federal Reserve Mortgage Outreach and Research Efforts (Federal Reserve System, June 2010)