How has the foreclosure crisis and the neighborhood instability it produces affected residents’ sense of collective efficacy and civic engagement? Using 127 semi-structured interviews in two Central San Joaquin Valley communities, South Merced and Planada, we examine residents’ perceptions of their community, collective efficacy, and civic engagement. These California communities are located in a region with one of the highest rates of foreclosure in the state. We find that although community foreclosures arouse concerns about crime and community blight, only relatively personal experience with foreclosure negatively affects collective efficacy. We find that respondents are less likely to volunteer to help solve community problems if they personally know friends or family members affected by foreclosure.