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Foreclosure sales of homes where the loans are in default still represent a loss for the banks making the sales. Yet local agencies that work with overextended homeowners say few lenders seem willing to work toward other outcomes.
When people come to the foreclosure prevention program, says Linda Hedstrom at California Human Development, they sometimes have unrealistic hopes. But the keeping the house is often not possible, so damage control becomes the fallback objective.
One secondary effect of the foreclosure wave has been a considerable number of former homeowners who must return to the ranks of renters. But Hedstrom observes the rental market in Sonoma County currently is much tighter than the for sale housing market.
