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by sitecore\kmcgrigg on June 04, 2008

Earlier today, I was contacted by a reporter who was working on a story about foreclosure.  MMI is HUD-approved housing counseling agency that works to educate and assist consumers facing foreclosure, so this was not an isolated occurrence.  In fact, MMI’s spokesperson, Cate Williams was recently interviewed by Terry Savage for a story titled Consumer Mortgage, Credit Woes and one of our foreclosure prevention initiatives recently won NeighborWork’s Innovations in Homeownership contest.

Because I also serve as an MMI spokesperson, I have had made an effort to learn all I can about foreclosure.  I love to talk about preventing foreclosure and I generally understand the logistics about what happens to a home after it is foreclosed.  And, thanks to a vacant home across the street and many informative articles (my favorite is by Liz Putnam Weston), I also have an idea about what happens to a neighborhood after homes in the area are foreclosed.   I know about what happens to the credit reports of consumers after a foreclosure and I can talk about ways to reestablish credit.  I’ve even read a lot about the impact of foreclosures on the economy.  But the question that still stumps me is: What happens to the people after a foreclosure?

My quick and dirty research discovered that there is a new category of abandoned animal called “foreclosure pets,”  But I can’t seem to find much about the pet’s owners. 

Suddenly, I really want to know—where and how are consumers recovering from a foreclosure living?  Are they buying different homes, renting, living with relatives, staying in hotels, or all of the above?  After all, behind every one of those shocking foreclosure statistics is a family who lost their home.  

I look forward to reading any information you have to share through the 'comments' section.

Posted in:  Loans & Credit, Mortgages


Dina Mayne says:
June 04, 2010

My husband and I were foreclosed upon two years ago after trying for over a year to sell the $375,000 home we had moved out of due to an illness and job change to another location. During that year we spent $36,000 in mortgage payments while living in a rented house. It has been devastating. Our credit plummeted, we lost $70,000 we had invested in the house, and we are repaying $33,000 to a bank for a second mortgage that was not part of the foreclosure. Because of renting and liquidating $15,000 retirement account to keep afloat, we owed the IRS over $3,500 which we are repaying monthly. We are paying off bills and trying to get out of debt as well as attempting to buy another house in a year as we were told we would have to wait three years to become home owners again. Proir to the foreclosure, my husband and I had 30 years of good credit and had bought and sold seven homes. We pay our bills monthly and have paid off several bills already. When will this punishment end? Will creditors ever trust us again? When?

Judy Szabo says:
October 17, 2008

I am on hold for my foreclosure...Waiting for mediation ordered by our courts, but I am also interested in where people go. If we lose our home, we will rent somewhere local. We do not want to declare bankruptcy, plus our home is worth less than we owe, so we are very unsure of what to do. We do have pets, and I could no more leave them than I could a family member. There seems to be a good amount of condos to rent in our local paper, and we wanted to sownsize anyway. I just have to look at it that way to keep my sanity.

Kim at MMI says:
June 07, 2010

Dina, Thank you for sharing your story. I am so sorry to hear that you have been struggling with the ramifications of foreclosure for so many years. I know that the process is long, but rest assured that your creditworthiness is improving every time you make a payment as-agreed. I know homeownership is your ultimate goal, but perhaps it would be helpful to break that goal down into smaller steps that can be accomplished more quickly. For example, paying down outstanding balances and saving for a down payment are accomplishments to be proud of. Best of luck to you and your husband, Kim

Richard says:
June 19, 2008

Our home just went into foreclosure but we will be working with a Bankruptcy attorney in an attempt to save it. Our financial woes were triggered by the collapse of our Real Estate and Mortgage business after almost 30 years in the business. If we cant find suitable jobs to replace our lost income so that we can save our home we plan to move out of California and into Moms house that she downsized out of after Dad died a year ago. It is sitting vacant because there are no buyers. While not our first choice – at least we are lucky enough to have a fall back positions.

Suky Thompson says:
September 18, 2008

I can't answer your question, but I have the same thought. If there are so many houses being foreclosed on that it is bringing down the US banking system, then what has happened to all the people affected. There must be a huge number of them - so what are they doing?

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