Arizona Family Loses Home to Foreclosure, Neighbors Give Them a Place to Live

Nov. 12, 2010— -- After Michael Toczko lost his job in June as a stock broker near Phoenix, he and his family watched their home fall into foreclosure.

Toczko and his wife, Kristin Hailstone, swallowed their pride and knocked on their neighbors' doors to tell them the news.

"We went to everyone and apologized for hurting their home values. We wanted them to know that we'd done the best that we could, truly, and everyone was just so gracious and all they cared about was keeping our family safe," Hailstone said.

Watch "World News with Diane Sawyer" tonight for more from Phoenix.

One family did more than keep the Toczkos safe. Liz and Joe Larger, a few doors down, took them in.

"We worked out the details," Joe Larger told ABC's Diane Sawyer. "We said, 'We're not each other's babysitters, we don't expect you to do this and you to do that.'"

Today, the Toczkos pitch in with what rent they can afford and together, the two families are a kind of experiment in generosity.

Liz Larger said that the families often "meet and cook a big dinner. It just kind of turns into big meals a lot, which is great."

The story of these two families is a story all too familiar in Phoenix.

The city is a hotspot for foreclosures. According to RealtyTrac, in the third quarter of this year, one out of every 69 homes in the Phoenix area went up for auction.

On top of the swelling number of foreclosed homes, Arizona's unemployment rate was 9.7 percent in September, just above the national unemployment rate. That means nearly one in 10 people are unemployed. In Phoenix, the unemployment rate was 8.9 percent last month.

The Toczkos' and the Largers' decision to consolidate their family homes is becoming less and less unusual. In the cul de sac where they live, three of the five homes have two families per address.