The Impacts of Foreclosures on Families and Communities: A Primer

most tumultuous in the history of U.S. housing markets. The period from 2000 to 2006 saw an unprecedented acceleration in home prices almost everywhere, and homeownership expanded markedly as access to subprime loans and other factors made it much easier for lower-income families to purchase a home of their own. Then it all fell apart. Prices in most regions have since plummeted and foreclosure rates have increased dramatically. Almost all American communities are affected, but levels of foreclosure are much higher in some neighborhoods and metropolitan areas than others. Recognizing that this turnabout was still quite new, in mid-2008 the Open Society Institute asked the Urban Institute to scan available research to assess what we now know about the way foreclosures impact families and communities and about policies and programs suggested or underway to prevent or mitigate those impacts. The results of this work have been documented in a separate report1 and elements have also been made available on a new web site, http://www.Foreclosure-Response.org. In addition, it was felt that this companion piece would be valuable: a brief overview that enables readers to get a sense of the full story quickly—impacts and response strategies—and then identifies sources where they can find more complete information on topics that are of special interest to them. Local practitioners and advocates who want to play a role in responding to the crisis are the primary audience for this work.