Rising foreclosures reshaping communities - USATODAY.com
Here is a Fred Pilot find from USA Today on the impact of the high and rising rate of mortgage foreclosures on neighborhoods, not just the folks who lose their homes. From what I have read, I'd say we aren't yet seeing the light at the end of the foreclosure tunnel. And of course many HOAs are trying to figure out how to handle non-payment issues.

And as thousands of homeowners across the nation are learning, it's not only home values that are being affected by the foreclosure crisis. When foreclosures rise, as they have in Water's Edge and other middle-class areas amid the meltdown of the subprime mortgage market, they can unravel the social fabric and reshape neighborhoods. The crime rate can rise while the quality of the schools goes down. Homeowner associations can see their treasuries drained. Nearby businesses close their doors, and local tax revenue suffers. These problems used to be concentrated in poor, urban and minority neighborhoods where mortgage defaults are more common. The real estate boom, turbo-charged by looser lending standards that began in 2000, changed that. Communities across the country, including some exclusive neighborhoods, have begun to feel the collateral damage of the pandemic use of adjustable-rate mortgages, or ARMs, that required little or no down payments or proof of income.