Should lenders (large and small) consider following the mortgage model of Habitat for Humanity. They too originate the mortgage of the homeowners as well as hold their homeowners hand and make the passage way to successful home ownership possible for their homeowners and their default rate is 2 percent. This is in their Dallas office but according to the article (link below), this also holds true for most of their office across the country. This is a great thing but is it a good thing? It’s great because this type of hand holding allows Habitat for Humanity’s home owners to keep their home by staying in constant contact with them and even setting up some systems to help them through the tough times.
Should lenders do this also? Is it fair to ask? Is it fair to expect this type of treatment? After all, first time home owner seminars are offered all over the country by banks and other home agency organizations but they still don’t have the same success touted by Habitat for Humanity? Why? One could argue many reasons but ultimately the responsibility falls upon the home owner. Everyone should take first time home buyer classes and get educated and really understand what it really means to be a homeowner and decide if they are ready for the responsibility? What do you think?