Foreclosure and Housing Instability

Foreclosure occurs when a homeowner fails to make mortgage payments, leading the lender to reclaim the property. This often results in housing instability, which can disrupt families and communities. When homes are foreclosed, displaced residents may struggle to find affordable housing, leading to increased homelessness or overcrowding. Foreclosure can also lower property values in the surrounding area and create economic challenges for local neighborhoods. Overall, it affects not just the individuals involved but also the broader community's social and economic health.