The number of people who have lost their homes to foreclosure in the last few years is in the millions. By some estimates, another 2 million people could lose their homes by the end of 2008, due in large part to defaults on subprime mortgages. How many of them will see it coming? It's hard to tell, but what is clear is that many homeowners do not understand what type of mortgage they have, what to do to avoid foreclosure and what to do when foreclosure is imminent.
A new publication that may be helpful is The Foreclosure Survival Guide, which provides basic information on when to worry about a loan, how to get help from a housing counselor and what pitfalls to avoid in choosing a counselor. It also includes a national hotline number and a list of local counseling agencies.
The Foreclosure Survival Guide is a publication of the Federal Reserve Bank of St. Louis in cooperation with the Federal Reserve Bank of Philadelphia. It is available for free to individuals or organizations by calling the Federal Reserve Bank of St. Louis at 314-444-8761 or by sending an e-mail to firstname.lastname@example.org.
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FedCommunities.org is a portal to community development resources from all 12 Federal Reserve Banks and the Federal Reserve Board of Governors.