Homeownership
The nationwide foreclosure crisis has sparked a dramatic increase in the demand for pre-purchase counseling services, as first-time homebuyers seek to take advantage of the low-cost housing options now available. Pre-purchase counseling is critical to ensuring that the dream of homeownership is not only attainable, but sustainable. There are now 33 Network members who provide counseling services to families in their communities, where housing counselors are helping lowe- income families buy and manage a home they can afford. Face-to-face counseling has been the traditional method used successfully by Network members, but changing client demographics and preferences, combined with staff capacity challenges due to the surging demand, have caused members to explore new counseling modalities for their business operations. For pre-purchase counseling and education, the Network is committed to developing innovative solutions that focus on web-based learning, using advanced techniques borrowed from other industries.
A Pilot Program Supported by Fannie Mae
With support from Fannie Mae, the Housing Partnership Network has launched a pilot initiative aimed at stabilizing those neighborhoods hit hardest by the foreclosure crisis. Through this pilot program, the Network is distributing Fannie Mae funds to six members that provide counseling services in communities with a significant stock of real estate-owned properties (REOs). The funds support efforts to strengthen links between pre-purchase counseling and neighborhood stabilization efforts, while increasing the number of first-time homebuyers who successfully purchase previously foreclosed homes. Since the pilot began in 2009, the program has helped create nearly 650 new homeowners, with an additional 1,000+ families on track to secure mortgages within 90 days.
