Sadly, foreclosure cannot always be avoided even when borrowers make the call to their lender/servicer early on in the process. Circumstances such as severe loss of income may prevent the mortgage from being modified to a payment that is affordable under the borrower’s current circumstances. Communities should take steps to identify resources that are available to consumers who are losing their homes and be prepared to direct citizens to those resources.

A list of local social services resources needed by displaced homeowners may include:

1. Public agencies and nonprofit organizations with information or deposit assistance for rental housing or information about temporary shelters.
2. Nonprofit credit counselors to help with budgeting and credit rehab.
3. Social services agencies such as United Way and the Salvation Army. They are equipped to handle the many needs of a person or family temporarily without shelter.
4. Food banks.
5. Local, county and state housing agencies, which are often familiar with a host of other services that may be needed by someone facing foreclosure.
6. Faith-based organizations that offer assistance and services.
7. Legal Aid offices where low-income homeowners can get information about their legal rights and access free to low-cost legal assistance.
8. Utility companies with deposit assistance programs.
9. Mental health professionals with programs targeting people affected by trauma and depression