One reason for the absence of a significant pickup in home purchases has been the substantial tightening of underwriting standards for mortgages. In addition, households’ concerns about their future prospects for employment and income have likely deterred many potential homebuyers from committing to mortgage payments that might be difficult to make if they lose their jobs.
Housing has played a central role in magnifying the recession and delaying the recovery. In Los Angeles, there is huge demand for information on foreclosure recovery from organizations that serve families going through the process of losing their homes.