Step Three: Establish Post-Foreclosure Support Systems

Sadly, foreclosure is unavoidable 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 table of contents below provides an overview of the topics covered in the Guide.

Managing foreclosure and options for a graceful exit

• Relinquishing ownership of the property
• Renters’ rights

Components of foreclosure recovery

• Relocation (housing and shelter)
• Restoration (restoring normalcy to life)
• Rebuilding (credit and finances)
• Renewal (stability and looking ahead)

Appendix—additional reports and resources

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

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