Project Restore

Marcia Griffin, President & Founder, explains HomeFree-USA's revolutionary new program.

Background on Project Restore™

Twelve million homeowners are expected to struggle with foreclosure over the next five years.

Government programs such as the existing National Foreclosure Mitigation Counseling Program and the Administration’s Making Home Affordable Program will have a significant impact on increasing the affordability of many mortgages. Unfortunately statistics show that as many as 55% of homeowners will re-default. Furthermore, homeowners with mortgage difficulties are strapped financially, credit challenged and panic stricken about their homeownership instability.

Solution

There are several economic factors that contribute to recidivism. After saving the homes of more than 12,000 families in the foreclosure and loss mitigation process, HomeFree-USA sees the underlying issue as lack of debt and cash management skills, a lack of financial education, and a reduction in income. With Project Restore™ HomeFree-USA has focused on a long term solution to address these underlying issues.

The program combines high touch coaching, behavior modification and financial education with banking technologies that are already in common usage in the marketplace. It creates a "forced" structure through which we monitor homeowner budgets, ensure the mortgage is paid on time, ehance savings, reduce debt and guide the homeowner until better financial habits are second nature.

Benefits

Community Benefits

• Financially strong and well educated homeowners
• Positive return on the investment made to help struggling homeowners
• Participation in the Administration’s commitment to strengthening the financial stability of Americans to turn the corner in these bad economic times
• Homeowners who can pay their mortgage on time every time
• Community stabilization, less crime and homelessness
• Increased tax revenue base
• Fewer foreclosures

Homeowner Incentives

• Given structure, coaching, classes and time to learn and change habits while in an environment that enforces financial responsibility
• Tools to improve credit status, enhance savings, reduce debt and be a responsible mortgagee
• Stay out of foreclosure and stay in home
• Ability to re-enter the market in a financially sustainable manner

Program Funders

Current supporters and program funders are HSBC, Bank of America, and Freddie Mac.

Summary We see this structured program being analogous to giving someone training wheels while learning to go from a tricycle to a two wheeler. Loan modifications are only the first step of a required longer term process to homeownership success. A longer term program of counseling and education is necessary to ensure that homeowners continue to perform. Smart funders can take full business advantage by capitalizing on the opportunities above while emerging as the goodwill ambassador to helping millions with homeownership and financial stability ---- a rare opportunity in today’s economic environment!