Sadly, foreclosure is not avoidable for some borrowers, even when they have made contact with their lender/loan 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 to the borrower.

Working collaboratively, housing counselors and other stakeholders from community-based organizations, financial institutions, and local government agencies can encourage former homeowners to regain personal financial stability and contribute to the overall recovery of their community. 

A Resource Guide for Foreclosure Recovery has been developed for use as a tool for community leaders to assist consumers in achieving stability following foreclosure. The guide covers topics that include relinquishing ownership of the property and renters' rights, as well as the necessary components of foreclosure recovery.

Contact the local field staff from the Community Affairs Office in your region for assistance with recommendations for implementing this guide.

Community Development Working Paper 2010-04
Pathways to Resettlement: Tools for Household Recovery from Foreclosure in the Eastside Neighborhood of Riverside, California 
As part of her Master’s degree program, Melody Nava, Regional Manager for Southern California, examined the foreclosure recovery needs of low-income households in the Eastside community of Riverside, California.  This report synthesizes the results of the study, and provides recommendations for how to assist families regain financial stability.