Habitat for Humanity is an international, non-profit, non-government, ecumenical Christian organization that’s dedicated to building decent, simple and affordable housing. The homes they build are built with labor that’s been volunteered and they’re sold at no profit. The organization determines who is chosen to get the habitat home when it’s built. They’re chosen by their ability to pay back their affordable, non-profit mortgage, their personal need and their willingness in working with Habitat.
By working with Habitat, they are expected to put in so many hours of “sweat equity”, if not in their homes than others. The mortgage payments the first few years are like a rent-to-own contract, with the money going towards the construction of future homes.
The owner of the new home also makes an agreement with Habitat that if they want to sell their home before the mortgage is paid, they will sell it to the organization for no more than what it cost to build. This also helps to prevent a Habitat for Humanity Mortgage Foreclosure.
Outside of the Unites States, some of the homes are sold with interest.
Habitat for Humanity was founded by Millard and Linda Fuller in 1976. They have an international headquarters in Atlanta that promotes the activities in the different chapters that manage the construction, homeowner selection and mortgages. By the year 2005, there have been 200,000 habitat homes built, housing one million people in their homes.
Every possible thing is done to avoid a Habitat for Humanity Mortgage Foreclosure on one of their homes. If one of the owners of the homes is having difficulty paying their Habitat for Humanity Mortgage, foreclosure can be avoided by selling the home back to the organization.
Different cities have a large Habitat for Humanity Mortgage Foreclosure Prevention Program, which provides advocacy, counseling and referrals. Occasionally, they offer financial help to families that are behind in their mortgage payments. Different groups such as the Family Housing Fund and The Wilder Research Center have determined that it is cheaper to prevent the foreclosure of a home than for it to be foreclosed.
Preventing a Habitat for Humanity Mortgage foreclosure is not only better for the individual involved, but also more beneficial for the community. Homes that are foreclosed often go months with no tenants, making them decrease in value and lower the value of the neighborhood.
Although most foreclosures are prevented if possible, there is occasionally still some Habitat for Humanity Mortgages foreclosures. These types of situations are usually when the person has not made payments for many months, possibly a year, and may have left the area. Otherwise, a Habitat for Humanity Mortgage foreclosure is very rare.