What happens after a foreclosure?

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.

Kim McGrigg is the former Manager of Community and Media Relations for MMI.

  • The Consumer Federation of America (CFA) is an association of nonprofit consumer organizations that was established in 1968 to advance the consumer interest through research, advocacy, and education. Today, nearly 300 of these groups participate in the federation and govern it through their representatives on the organization's Board of Directors.
  • The National Council of Higher Education Resources (NCHER) is the nation’s oldest and largest higher education finance trade association. NCHER’s membership includes state, nonprofit, and for-profit higher education service organizations, including lenders, servicers, guaranty agencies, collection agencies, financial literacy providers, and schools, interested and involved in increasing college access and success. It assists its members in shaping policies governing federal and private student loan and state grant programs on behalf of students, parents, borrowers, and families.

  • Since 2007, the Homeownership Preservation Foundation (HPF) has served as a trusted, neutral source of information for more than eight million homeowners. They are partnered with, and endorsed by, numerous major government agencies, including the U.S. Department of Housing and Urban Development and the Department of the Treasury.

  • The mission of the U.S. Department of Housing and Urban Development (HUD) is to create strong, sustainable, inclusive communities and quality affordable homes for all. HUD works to strengthen the housing market in order to bolster the economy and protect consumers; meet the need for quality affordable rental homes; utilize housing as a platform for improving quality of life; and build inclusive and sustainable communities free from discrimination.

  • The Council on Accreditation (COA) is an international, independent, nonprofit, human service accrediting organization. Their mission is to partner with human service organizations worldwide to improve service delivery outcomes by developing, applying, and promoting accreditation standards.

  • The National Foundation for Credit Counseling® (NFCC®), founded in 1951, is the nation’s largest and longest-serving nonprofit financial counseling organization. The NFCC’s mission is to promote the national agenda for financially responsible behavior, and build capacity for its members to deliver the highest-quality financial education and counseling services.