Foreclosure Prevention Policy Guide

Policy Guide for Foreclosure Prevention

Guidance and examples in this area of the site can assist municipalities and states implement sensible and effective policies which address the impact of foreclosures on communities, families, neighborhoods, properties, and local small businesses which are particularly susceptible to the impacts of foreclosure.
Current housing policy statements from the New Policy Institute stem from activity which the Task Force on Foreclosure Prevention are available on the Advocacy and Policy page.

The Real Story on Foreclosure. Why and How to Craft the Proper Foreclosure Response

Additionally, it is important to understand the reasons why stopping foreclosures and moving a community back in the right direction matters for families, lives, and communities.Ways which foreclosures impact families: For those folks who face foreclosure with children and a spouse who depend on them, consider the ways which foreclosure can be overcome when coming together as a family.

A home foreclosure classifies as an extremely traumatic life event for families. The fact is especially valid in the case of children. Approximately 9.0 million children have been affected by home foreclosure at the time of publication in February 2014, such as those children which have lost homes already as well as ones who face immediate foreclosure risk .

Foreclosures have the effect of disrupting children’s normal lives via several methods:

  • Financial hardship and family and home-life stress
  • Relocation and difficulty in moving from one home to another, often involving a downgrade from a home to an apartment or from one part of town to a more distressed part of town
  • Changing of a child’s school such as from one elementary school to another
  • Decreased access to public services

Communities benefit and improve systems and services which can be provided to families to minimize the amount of harm to children who live in homes which have been foreclosed. Learn program and policy strategies for various sectors.

How Foreclosures Affect Real Estate Communities

Develop Response Strategy for a Coordinated Response Become Organized Regarding Foreclosure Response
Strengthen the Local and State Policy Environment
Develop an Action Strategy for the  Local Community
Assess Foreclosure Prevention Progress

Expand foreclosure monitoring on properties and subsequently monitor homeowners
in their attempt to resolve real estate code violations effectively in reducing the general neighborhood decline.

Bring Properties “Back to Life”Encourage private sector involvement for community betterment.
Obtain, rehab, and handle management of foreclosed properties.
Foreclosures quite often lead a community into rising vacancies as well as decreasing values for existing occupied properties. As communities take the type of steps which rehabilitate and put foreclosures back into use, local governments reduce much of the negative economic spillover from foreclosures properties. Many tools which help in the reusing of foreclosures have roots within existing property initiatives. Foreclosure Response will assist in working out details to help communities get back on track. Review your options and feel free to contact our office for more information about options which will best help the situation within your community.

This section divides the numerous tools for reusing foreclosed properties into two main roles that communities can play:

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