BiggerPockets

American Homeowner Preservation Acquires 6.6MM of Non-Performing Mortgages

Thursday, July 07

American Homeowner Preservation LLC completed over $6,600,000 in non-performing mortgage and REO acquisitions in June, bringing year-to-date acquisitions to over $10,000,000.  AHP has utilized private investors to fund these acquisitions from both banks and hedge funds. By taking control of the mortgages or occupied REOs, AHP can craft solutions to keep families in their homes. Thus far, AHP has cut monthly payments by an average of almost 40% and provided options to families to repurchase their homes at prices averaging 63% less than their prior mortgage balances. American Homeowner Preservation can be contacted at (800) 555-1055 or www.ahphelp.com.

American Homeowner Preservation Recognizes Outstanding Employee Denisse Bays

Tuesday, April 26

BBB: American Homeowner Preservation Gets an 'A'

Tuesday, April 26

CINCINNATI, OH - April 12, 2011 –

The Better Business Bureau recently gave foreclosure prevention company American Homeowner Preservation (AHP) an "A" rating. AHP provides a short sale leaseback program to families who owe more than their homes are worth.  When existing lenders approve, families are able to short sell and stay in their homes with lease payments averaging 40% less than prior mortgage payments. In addition, participants receive an option to repurchase their homes at amounts averaging 54% less than what was owed on their underwater mortgages

"Every family has a unique set of circumstances, dictating a customized resolution. Government, banks and servicers have tried to apply one-size-fits-all solutions to these millions of families, and the results have been miserable for all involved," said American Homeowner Preservation Director Jorge Newbery. “The solutions offered to families are tailored as solutions for the banks and then are imposed on the families. The reverse is what works: find a solution for each individual family, and then try to make it work for the bank," Newbery continued. "We are encouraged by the 'A' rating from the BBB."

23% of all residential properties with a mortgage are underwater with an aggregate $750 Billion Dollars of negative equity, according to a March 2011 CoreLogic report. "The 11.1 Million homes at risk of foreclosure could result in the largest displacement of American families in history," said AHP's Michelle Weadbrock. "Our goal is to keep these families in their homes with affordable leases and favorable options."

AHP does not charge fees to homeowners. Families seeking assistance are encouraged to contact AHP at (800) 555-1055 or www.ahphelp.com.

Contact:
Jorge Newbery
American Homeowner Preservation
800-555-1055
Email

American Homeowner Preservation Saves Another

Tuesday, April 05

"We were introduced to your program by Gil Bivens of Aztec Financial in Phoenix, Arizona. The entire process was surprisingly very simple. When Gil gave us an initial presentation about the program and how much money we were going to save, it was hard to believe that the bank would allow us to sell our house to an investor and allow us to buy it back at its market value, which was estimated at about $30,000.00, compared to what we owed $152,000. We can now buy our house back for about $36,000 for a huge savings of about $116,000. Our monthly payment went from $1,064 to $639.00. Overall, we love AHP for helping us save our home. Bottom line, we are blessed for what AHP has done and would recommend anyone, going through tough times to take a chance and let AHP help them."

American Homeowner Preservation: Trustees Helping Investors

Sunday, March 20

Some states are experimenting with principal write-downs, using the Treasury Department’s Hardest Hit Fund to finance them, and the results have in some cases been positive. We’re talking about 40,000 borrowers at most, a paltry sum compared to those in need, but it could lead to data showing the stability of principal reductions as a modification strategy (data we already have, but this would be in the current context). And this is even more interesting:

When American Homeowner Preservation was first conceived, the vision was a solution which benefited homeowners, investors as well as existing lenders. In practice, homeowners and investors have recognized the advantages and have responded mightily. However, AHP’s offers of prompt resolutions which maximize lenders’ recovery on their troubled mortgages have generally been poorly received by lenders. As a result, approximately 15% of AHP short sale offers are ultimately approved by lenders and a great deal of time and effort is spent trying to resolve the other 85% of applicants who ultimately cannot be assisted due to lack of cooperation from existing servicers.

To solve this challenge, AHP has been bidding to acquire pools of REO’s and subperforming mortgages at large discounts. By gaining control of the REO’s and mortgages, AHP can then approach each family and offer them an AHP Lease/Option if they want to stay, or an incentive payment if they want to move.

If the family does not want to stay or the home is vacant, the home is marketed through local real estate agents to sell promptly at discounted prices to cash buyers. Because the pool properties are purchased at substantial markdowns, they can be resold at wholesale prices and still generate a good return.

Basically you have American Homeowner Preservation using private investor money to buy up mortgage pools and give the borrowers the solutions they need, not the ones that maximize profits for the company. I don’t know that there’s that much money out there to do this on a grand scale, even though the short-term returns are pretty high, but it’s an exciting development, and it shows you can do well and do good at the same time. Frankly, it’s what the government did with the Home Owners Loan Corporation in the 1930s, and what they should be doing today.

American Homeowner Preservation Buying Pools of Defaulted Mortgages & REO's

Monday, March 14

When American Homeowner Preservation was first conceived, the vision was a solution which benefited homeowners, investors as well as existing lenders. In practice, homeowners and investors have recognized the advantages and have responded mightily. However, AHP's offers of prompt resolutions which maximize lenders' recovery on their troubled mortgages have generally been poorly received by lenders. As a result, approximately 15% of AHP short sale offers are ultimately approved by lenders and a great deal of time and effort is spent trying to resolve the other 85% of applicants who ultimately cannot be assisted due to lack of cooperation from existing servicers.

To solve this challenge, AHP has been bidding to acquire pools of REO's and subperforming mortgages at large discounts. By gaining control of the REO's and mortgages, AHP can then approach each family and offer them an AHP Lease/Option if they want to stay, or an incentive payment if they want to move.

If the family does not want to stay or the home is vacant, the home is marketed through local real estate agents to sell promptly at discounted prices to cash buyers. Because the pool properties are purchased at substantial markdowns, they can be resold at wholesale prices and still generate a good return.

This approach creates a built-in pool of potential AHP clients. Effort now squandered in dealing with uncooperative servicers and lenders can be better spent providing families with long-term solutions to stay in homes in which AHP has taken over the lender position. Ideally, acquisitions of REO's and delinquent note pools will become the primary driver of families to AHP.

AHP completed their first note pool purchase in February and dispositions have proven successful. Now, AHP has entered into a rolling contract with a large bank to acquire their REO's, the majority of which are still occupied. The REO's are expected to continue to be acquired on an ongoing basis.

In a quest to keep AHP a Main Street solution without the poison which comes from Wall Street money, AHP is utilizing private investors to fund the REO and Note purchases. Investors receive assignments of the Notes and Defaulted Mortgages, or Participation Agreements and Security Agreements on the REO's. Due to the anticipated short 14 - 90 day life of most of these investments, the annualized returns are projected to be significant. Investment sizes range from $9,000 on up, well within the reach of many investors. AHP puts 10% down each acquisition and, due to the time value of money, AHP and investors both have the incentive to turn over investment funds as fast as possible. Also, bridge investors receive the first right to acquire the homes of those families who choose to stay with an AHP Lease and Option.

American Homeowner Preservation is excited about this next step in their evolution.