Sometimes when people are foreclosed on they're in denial about what's happening to them. They're given a deadline to vacate the premises since the bank is officially taking ownership of the property. If they're not out, the local authorities will come and force them to leave. If it gets to that point, there isn't time to get your possessions. Typcially, you can make arrangements with the bank to go get your things back, but they may charge you storage fees, so you have to come up with that money before you'll have access to collect your things.
People are in debt because they either bought a house they coudlnt' afford, or refinanced and took all the equity they could at the peak of the market. Then, their rate adjusts and there's no way to make the payment. People used equity to fund vacations, cars they couldn't afford with tradition auto financing, furniture... you name it.
When I bought my house I promised myself that the only reason I'd ever take out equity was if it was being put back into the house, a new roof, reinforcing the foundation to prevent earthquake damage, stuff like that. I remember when I told my dad that I wanted to buy a house he gave me the best advice. He said "make sure you own the house, don't let the house own you." Maybe more people needed to hear that advice before getting in over their heads.
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