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 Federal Reserve Bank of San Francisco Community Development field staff person in your region for assistance with recommendations for implementing this guide.