Foreclosure Mitigation Toolkit for Communities

Step One: Assess the Foreclosure Situation

The first step in any community effort is assessing the foreclosure situation in your community. This will also enable you to target limited resources to foreclosure hotspots.

Data and Maps

U.S. Credit Conditions in the United States

The New York Fed maintains a website with dynamic maps and data showing credit conditions by county across the U.S. These maps show delinquency rates for various types of credit including auto, bank cards and student loans in addition to mortgage loans. The maps may assist community groups in targeting financial counseling and other resources to at-risk homeowners. Policymakers can also use the maps and data to develop plans to lessen the direct and spillover impacts that delinquencies and foreclosures may have on local economies. Local governments may use the data and maps to prioritize the expenditure of their resources for these efforts.

Visit your Reserve Bank’s website for research reports, data, and practical information, and/or contact your Bank’s Community Development Office with specific requests.

National Delinquency Survey

The Mortgage Bankers Association (MBA) provides quarterly reports on delinquency and foreclosure rates of loans at the national, regional and state levels. The MBA’s National Delinquency Survey, conducted since 1953, covers 80 to 85 percent of all first-lien residential mortgage loans outstanding in the United States. Delinquency and foreclosure measures are broken out into various loan types (prime, subprime, VA and FHA) and fixed- and adjustable-rate products.

Regional and Local Data Resources

State laws require that notices of intent to foreclose real estate be posted for public view, although the exact posting process varies from state to state. These preforeclosure notices, along with actual foreclosure sales data, are compiled regularly by various companies who make the information available for sale. Some counties make maps and listings of property addresses available during the “publication” period prior to the foreclosure sale date. Contact a local title company in your community to get more information on the best local sources for pre-foreclosure and foreclosure sales reports.

Foreclosure Laws

Foreclosure laws and regulations are important to consider and can vary significantly across states. In some states with a judicial foreclosure process, the lender must take the borrower to court to seize the property. In other states, a nonjudicial foreclosure process requires no court action.

Sources for State Laws on Foreclosure

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Narayana Kocherlakota