The latest recession is over, at least according to statistics from the Federal Reserve. Yet many people are still feeling the fallout. Some who for several years have met their mortgage payments by dipping into savings are finally facing the harsh reality that they can't hang onto an expensive property much longer.

"Many people lost well-paying jobs during the downturn," says Eric Tyson, author of "Personal Finance for Dummies."

He says the homeowners who cope best with the anticipated loss of a home are those who move forward decisively toward a sale rather than waiting until mortgage payments are late and foreclosure looms.

The number of homeowners in the foreclosure process peaked at 1.2 million in 2010 and has since fallen to 650,000, says Daren Blomquist, a vice president at RealtyTrac (www.realtytrac.com), a publisher of real estate data.

While many of these foreclosures were products of underwater mortgages, in which the current value of the house is less than the money owed, that's now changing.

"Due to rising property values, one-third of those now entering foreclosure have positive equity, which meant they could have sold and probably walked away with some proceeds," Blomquist says.

Tyson says that though a wrenching decision, an involuntary downsizing can sometimes have positives.

For example, some families appreciate the reduced upkeep demands that come with a more modest house, as well as the generally increased financial flexibility.

No matter the pros and cons in your case, you're likely to fare better if you take a strategic approach. Here are a few pointers:

-- Don't procrastinate on tough decisions.

Sid Davis, a real estate broker and author of "A Survival Guide to Selling a Home," says many homeowners delay too long to make the tough decision to sell.

Multiple government and private sector programs are now available to help homeowners struggling to keep their homes after a financial setback. However, assuming you've explored these programs and know you're ineligible, Davis recommends you engage the services of a reputable real estate agent to list your property and attempt to sell it as promptly as possible.

"People who delay getting their property on the market often fall behind on their payments, making it all the more likely their good credit rating will be sacrificed," he says.

-- Investigate your options for the future.

One approach to lessen the psychological pain of an involuntary home sale is to waste no time in starting to look at alternative areas where you could live. The aim here is to select the best community you can afford, keeping your household expenses firmly in mind.

The primary advantage to exploring other neighborhoods early is to give you a tangible vision of your future lifestyle.

"You could be pleasantly surprised by some of the strong qualities of a more affordable neighborhood. For example, the new area might have better parks and more playmates who are the right age for your kids," Davis says.

But he urges you to resist the temptation to tour specific homes until you've received a solid offer for your old place.

"Why get your heart set on a particular house until you know how you'll do financially on the sale of your present property? There's no point to putting the cart before the horse, which can cause serious disappointment," Davis says.

Still, by pinpointing your favorite community early in the process, you'll be primed to find the right home when the appropriate time comes, he says.

-- Get active in the new community of your choice.

Even before you've sold your house, you might wish to become acquainted with residents in your target neighborhood. As Tyson says, beginning to make friends in the new area can help make for a more comfortable transition when your move finally occurs.

"Perhaps you could start doing some volunteer work in the new community or your kids could join a sports league there," he says.

-- Consider throwing a "farewell party."

As Davis says, one way to generate happy memories is to stage an informal "farewell party" involving the friends, family members and relatives closest to you. During the party, pose your guests for photos in the parts of the home you love most.

"Try not to view your move as a major setback. Instead, consider it a chance to reorder your priorities, find new friends and possibly discover a community more to your liking," Davis says.

(To contact Ellen James Martin, email her at ellenjamesmartin@gmail.com.)

While the real estate market traditionally slows in the fall and winter, that doesn't stop diehard buyers who aspire to a property that's newer, larger or simply more to their liking.

Take the true story of a couple in their early 60s, a travel agent married to a government consultant, who sold their multi-level family house and plan to buy a more expensive single-story place with a huge gourmet kitchen and an expansive patio.

"Lots of baby boomers are now aching to bail out of a dated suburban house in favor of a newer one with no stairs. And some of these folks are so restless that they refuse to wait until spring to move," says Sid Davis, a real estate broker and author of "A Survival Guide for Buying a Home."

Other wannabe trade-up buyers are those with young families who've lived in a starter home for several years and are now eager for a larger place in a neighborhood with better schools.

But no matter how desperate you may be for new digs, make sure that your new house will be worth the trouble and expense of moving.

Here are pointers for trade-up buyers:

-- Define precisely what you want in your next home.

Many would-be buyers have only a vague notion of the sort of the home that would make them happy. But it's well worth your time to specify exactly what you want in a property, says Fred Meyer, a real estate appraiser and broker who sells property near Harvard University.

Meyer says trade-up buyers have an advantage over starter-home purchasers because those moving to a second or third home can draw on past experience.

He suggests movers make a list of everything they don't like about their present home. Then they should flip that list to help itemize the highest-priority features they're seeking in the next place.

-- Don't rule out a property that's languished unsold for a long time.

Many buyers are suspicious of any place that's been on the market for an unusually long time, particularly if other homes in the same neighborhood have sold relatively quickly. But Davis says buyers can often do well if they're willing to consider such "stale listings."

"In the vast majority of cases, the only thing wrong with the stale house is that the sellers were trying to price-gouge at the beginning," Davis says.

Trade-up buyers willing to consider such a home can sometimes obtain a high-quality property at a below-market price, he says. That's because the longer a property sits unsold, the more likely its owners are to bargain in earnest.

Still, Davis offers one caveat to those looking for deals among stale listings: Hire a top-notch home inspector to make sure a prospective purchase doesn't have any major defects, such as structural problems.

-- Steer clear of a home that needs extensive remodeling work.

Davis says trade-up buyers who had to do considerable remodeling work on a previous home are generally disinclined to buy another "fixer-upper."

"These days, there are a dwindling number of folks willing to take on big renovation projects, because most people are way too busy, which makes them phobic about remodeling, even for those who can afford top-notch contractors," Davis says.

Suppose, for example, that you've fallen in love with a stately Victorian house in a leafy neighborhood where you'd love to raise your young children. And suppose, also, that you know that property will require a lot of work before you could move in. What should you do then?

In that case, Davis recommends you obtain estimates for all the major work the property needs and carefully evaluate those estimates to decide if you're prepared to invest all the time and money necessary.

-- Factor in the potential pluses of buying during the winter holiday season.

Obviously, not everyone is in a good position to trade up in the immediate future. If you're not, you may need to delay your quest to move to a better home until mid-2015 or later.

Yet purchasers who are now in a positive financial position could do well to move soon, according to Davis, who says the upcoming holiday season might be a good time to make a transition.

"Usually, people trying to sell during the holidays are those who absolutely must move. This could make them very receptive to your offer. And a good price, coupled with exceptionally low mortgage rates, means a double whammy in your favor," Davis says.

(To contact Ellen James Martin, email her at ellenjamesmartin@gmail.com.)

A couple in their early 30s -- an elevator company salesman married to a nurse -- had for five years relished life in a up-and-coming city neighborhood with lots of good restaurants and bars nearby. But after their first child was born, their priorities shifted.

"Like a lot of young homebuyers, their whole orientation became schools, schools, schools," says Ashley Richardson, the real estate agent who assisted them.

Soon the couple pinpointed a suburban neighborhood with a top-rated elementary school, along with parks, playgrounds and a community pool. There was only one catch: high prices.

Working with a limited budget, the couple identified just five houses they could afford in their first-choice neighborhood, all in the bottom 10 percent of the price range there. Of those, only one had enough living space to make it a plausible choice. And that one was located on a busy road. But they knew their limited funds necessitated a compromise, so they took it.

Eric Tyson, a personal finance expert and co-author of "Home Buying for Dummies," says that since the recession, many homebuyers such as the above couple have lowered their expectations for housing.

Here are a few pointers for budget-conscious homebuyers with young children:

-- Make a realistic assessment of your need for a large yard.

Recalling their own carefree childhoods, some parents assume their kids need a similar setting to be happy. But what was important in your formative years isn't necessarily vital for your children now, Tyson says.

"The reality is that kids just don't have as many hours of free time for backyard play as we did when we were growing up," Tyson says.

Rather than focusing solely on yard size, Tyson suggests you think about the outdoor features of the neighborhood as a whole, such as parks and open space.

Surprisingly, neighborhoods where yards are smaller are often more child-friendly than those with oversized grounds.

"It's good for children to live close to their neighborhood friends. That way they don't have to be driven around to see playmates," Tyson says.

-- Find a floor plan that works well for your family.

Tyson says it's more important for families with young children to have a floor plan that encourages togetherness than to own a large house.

Large, comfortable common rooms -- often called "great rooms" -- help draw children out of their bedrooms, thereby allowing parents to monitor their kids at homework time, for example.

-- Look for a home with as many bedrooms as your budget allows.

Newly built houses with a wealth of living space typically feature spacious master bedroom suites. In such houses, secondary bedrooms, designed for children and guests, are usually much smaller.

But Tyson says it's more important for families to have an adequate number of bedrooms than a luxurious master suite.

"People who have fond memories of sharing a bedroom with a sibling may be fine with that sort of setup. However, nowadays, most buyers really want a separate bedroom for every kid, so all the children can get enough sleep, even if they have different school schedules," he says.

-- Realize that a two-story house should give you more space for the money.

Many current homebuyers favor single-level living. Those who've hit middle age or beyond are especially likely to prefer a one-story house free of stairs.

But Tyson says people with school-age children might wish to consider the advantages of living on two levels. That's because it's easier to contain the noise and mess of growing children if their bedrooms are separated from the family's common living space.

With a two-story house, parents can entertain guests on the first level while their kids are playing upstairs. Also, young families can typically get more space for the money in a two-story house.

-- Explore school quality beyond test scores.

Through the Internet, it's now easy to compare schools on the basis of standardized test scores. But there are many other factors to consider as well, says William Bainbridge, president of the SchoolMatch Institute (www.schoolmatch.com), a research group focused on comparative school quality.

Before making your final neighborhood selection, Bainbridge strongly recommends that parents take the time to visit schools and pose questions to teachers and administrators. By doing so, they'll get a feel for the culture of each school and its faculty.

"Intangible factors can make a huge difference to children. You don't want your kids taught in an environment with punitive teachers, even if the school's test scores are stellar," he says.

-- Don't cater to your children's housing preferences.

It's not uncommon for children to protest their parents' plan for a housing move. Why? Because, as Tyson says, "children like constancy."

To mollify their unhappy children, some parents let their kids influence which property they buy. But Tyson says most children adapt quickly to a move and that letting their feelings sway your planning could be a regrettable mistake.

"Maybe your children like one house better than another because it has purple bedrooms. But that's no basis on which to make so major a financial decision," he says.

(To contact Ellen James Martin, email her at ellenjamesmartin@gmail.com.)