Turning everywhere, getting nowhere: experiences of seeking help for mortgage delinquency and their implications for foreclosure prevention

The growing literature on financial, demographic, and institutional aspects of the foreclosure crisis largely neglects the experiences and actions of homeowners. This in-depth account of homeowners' responses to mortgage delinquency and the success of the strategies they employ to prevent foreclosure is based on focus groups conducted in 2006 with low- and moderate-income homeowners, and nonprofit housing professionals in five US cities. The events precipitating mortgage delinquency often set off a cascade of trouble placing multiple demands on homeowners' financial, emotional, and social resources. Homeowners pursued foreclosure prevention assistance from a variety of sources including their lender, social welfare agencies, and nonprofit homeownership organizations, but encountered many obstacles to resolving mortgage delinquency. Their unsuccessful attempts to secure assistance contributed to financial and emotional strain and sometimes worsened prospects of preventing foreclosure. Despite the numerous federal policies developed to address the problem of foreclosure, the experiences described by participants in this study continue, indicating the need for more systematic, enforceable, and preventive policies to address foreclosures in the future.