AMERICAN HOMEOWNER PRESERVATION HELPS CHICAGO FAMILY AVOID FORECLOSURE

American Homeowner Preservation (AHP) announced today it has completed a mortgage modification for a Chicago family, ending their 3-year mortgage nightmare that almost ended in foreclosure. By working with AHP, the family was able to reduce their monthly mortgage payments by 54%, reduce their mortgage principal by two-thirds and settle their delinquency at a 96% discount. With these modifications, the family was able to avoid foreclosure and stay in their home.

The married couple fell into arrears on their mortgage when the husband was laid off in 2010 from his 15-year job as a professional house painter. Despite a dogged search, he was only able to find temporary part-time work because of the depressed job market. The wife’s wages as a school security guard just weren’t enough to make up the difference, so they fell behind on their mortgage payments.

The family’s experiences working to resolve their difficulties with their lenders were typical of others in the same situation: as soon as they thought they were making progress toward a loan modification, the lender lost their paperwork or sold their loan, eliminating credit for payments they had made and requiring that the whole process be restarted. The family tried to modify their mortgage or refinance with their original lender plus three additional lenders, but none of their efforts was successful. By the time they received an offer from AHP, they had all but lost hope they could ever stay in their home.

After carefully researching AHP, they called to discuss their options. “This family was intent on staying in their home, and AHP wanted to help them accomplish this,” says Jorge Newbery, Founder and CEO of American Homeowner Preservation. “In their case, we were able to offer them a substantial reduction on their principal, from $177,000 down to $60,200. Further, we settled the $70,000 delinquency for $2,500, spread over two installments. Finally, we dropped the monthly payment from $1,508 to $700. The results are financially transformative for the family and generate strong returns for our investors. This really is an example of our ability to create a positive outcome for everyone concerned—the family, the neighborhood and our investors – while avoiding all of the negatives that accompany a foreclosure.”

American Homeowner Preservation Celebrates Five Year Anniversary

American Homeowner Preservation (“AHP”) is celebrating five years’ of providing families at risk of foreclosure with viable long-term solutions to stay in their homes. Founded in 2008 as a 501c3 nonprofit in Cincinnati, AHP pioneered the short sale leaseback as a foreclosure remedy for struggling homeowners. Faced with resistance from many banks which insisted that families vacate their homes in order to have their short sales approved, AHP changed their strategy in early 2011: now a for-profit headquartered in Chicago, AHP purchases pools of nonperforming mortgages from banks and other lenders and then offers borrowers sustainable solutions to stay in their homes, including reduced payments and discounted principal balances. If homes are vacant or families want to move, AHP offers deficiency waivers and incentive payments to cooperate with short sales in order to put the homes back into productive service.

Originally modeled to be financed with municipal tax-exempt bonds, American Homeowner Preservation’s efforts are now primarily supported by accredited investors, both high net worth individuals and institutional investors. “Doing good for families and communities and doing well by achieving attractive returns for our investors do not have to be mutually-exclusive–achieving both is possible,” said Founder and Chief Executive Officer Jorge Newbery. Since inception, AHP has assisted hundreds of families, reducing payments by an average of over 40% and cutting principal balances by an average of more than 50%. “Solutions are prompt, easy-to-understand and simply require families to choose the option they want. We avoid the endless document requests and opaque, inefficient processing of the big banks,” explained Asset Manager Michael Nelson.

Further, American Homeowner Preservation has helped return hundreds of abandoned, vacant homes to productive use. “Frequently, families are overwhelmed with the threat of foreclosure, do not understand their options and get frustrated with the never-ending maze laid out by their banks. Thus, they move out, the homes get vandalized, and the neighborhood is further blighted,” explained Newbery. “Many lenders apparently hesitate at foreclosing on vacant, vandalized homes due to municipal requirements to maintain and they sell these loans to AHP. We will try to contact the homeowners and offer them a modest cash incentive to sign a Deed in Lieu or cooperate with a short sale. We prefer paying struggling families than paying lawyers to foreclose,” Newbery added. “Returning these homes to productive use is essential to the stabilization of many communities devastated by the foreclosure crisis.”

American Homeowner Preservation’s evolution continues, but the mission of helping families stay in their homes remains the same. “Even with the recent improvements in some housing markets, there are still millions of homeowners at risk of foreclosure who are struggling to stay in their homes.” said Newbery. “AHP wants to help these families.”

AMERICAN HOMEOWNER PRESERVATION HELPS NEW JERSEY HOMEOWNER AVOID FORECLOSURE

American Homeowner Preservation (AHP) announced today it has completed a mortgage modification for New Jersey homeowner William Beltran, ending his 3-year mortgage ordeal and enabling him to stay in his home of more than a decade. After purchasing Beltran’s mortgage, AHP was able to provide a principal reduction of almost 30 percent and reduce his monthly payments to an amount affordable based on his current income, saving the family from foreclosure.

Beltran, a psychologist, initially ran into mortgage trouble after developing a chronic medical condition that adversely impacted his ability to work. He tried to resolve his mortgage problems in a number of ways on his own, including seeking a mortgage modification from his original lender, seeking an independent refinance, applying for help from the federal government’s Home Affordable Refinance Program (HARP), working with an attorney and turning to a local nonprofit organization. None of these efforts were successful, and many of them added further to his indebtedness–the attorney alone cost $11,500, which turned out to be wasted.

When he received an offer letter from American Homeowner Preservation, Beltran was skeptical. “It sounded too good to be true,” he said. After speaking with other homeowners who had worked with AHP and checking the firm’s record with the Better Business Bureau and elsewhere, he started to believe they really could help. Then, he called AHP to discuss his options.

“Talking to AHP was the first time in a long time I felt like I was treated with respect, not contempt,” Beltran said. “We had an honest discussion of my options and my situation, and I was not pressured to choose one option over another. Once I decided what I wanted to do, the process couldn’t have been easier. I only had to submit my documents once and they were received– before, I was dealing with never-ending document requests even after I had already submitted them multiple times.”

“William is a great example of how an unexpected health problem can snowball into a foreclosure situation. He was doing everything right, everything the government and big banks tell families to do, yet he and the majority of families end up worse off,” said Jorge Newbery, Director of American Homeowner Preservation. “To help him stay in his home and end his anxiety so he can focus on his health and his family is very rewarding,” Newbery continued. “And to be able to do that while still providing our investors with a solid return so we can help others in the same situation is even better. Doing good for families and communities and doing well by achieving attractive returns for our investors do not have to be mutually-exclusive–achieving both is possible. ”

William couldn’t be more pleased with the outcome of his relationship with AHP. “I am infinitely happy,” he said. “It is incredibly thrilling and humbling to be able to stay in my home, especially since, for a while, I was pretty much waiting for the sheriff to show up at my door at any time. Selling or moving was not something I even wanted to consider. This is my home – it’s where my children grew up and where I have a lifetime of memories. I am so grateful.”

American Homeowner Preservation (“AHP”) purchases pools of challenged mortgages from banks and other lenders and then offers borrowers who want to stay in their homes viable, sustainable solutions with reduced payments and discounted principal balances. If homes are vacant or families want to move, AHP offers deficiency waivers and incentive payments to cooperate with short sales in order to put the homes back into service.

To learn more about how AHP helps prevent foreclosures and preserve neighborhoods, please visit www.ahphelp.com , call 800.555.1055 or email info@ahphelp.com.

American Homeowner Preservation Acquires 6.6MM of Non-Performing Mortgages

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.

“Each family has a unique set of circumstances, dictating customized resolutions,” said AHP Director Jorge Newbery. ”Traditionally, government, banks and servicers have tried to apply one-size-fits all solutions to these millions of families, and the results have been disappointing for all. AHP approaches each family, asks them what they want and what they can afford, then concocts a solution which makes sense for the family, AHP and our investors. AHP’s priority is what makes sense for the family, not what makes the most money for AHP or our investors. We can provide fantastic solutions for struggling families and still generate strong returns for AHP investors. The two are not mutually exclusive.”

AHP’s most common fix is a short sale leaseback of the home to an investor who agrees to provide an affordable lease and favorable repurchase option to the family. AHP provides counseling during the five years lease term to maximize the likelihood that the family will qualify for financing to repurchase. ”I wasn’t able to pay my mortgage because I lost my warehouse job at a supermarket. The company closed after I worked there two years. AHP really does help people to not lose their homes,” said Antonio Diaz of Dallas, whose monthly payment dropped from over $800 to $461 and who can repurchase for $19,780 the home which previously secured his $59,850 mortgage.

Unlike many mortgage holders, AHP encourages non-arm’s length transactions. One Indianapolis family owed over $100,000 on their mortgage. When AHP offered to have an investor buy the home for $22,000 and leaseback to the family, the homeowner proposed that his brother come up with the $22,000. ”My brother was able to buy my house and now I’m now renting from him. I wasn’t able to pay my mortgage because I lost my job after the company shut down. I was there for four years, then my interest rate increased and my lender wouldn’t let me do a loan modification. Now I paint houses but, unfortunately, there’s not a lot of work or money. Still, I can pay the rent that was set up with my brother and AHP. I’m very pleased how everything turned out,” said former homeowner turned renter Martin Jiminez.

In some cases, AHP can cut principal and modify the loan. “I feel like this was an answer to my prayers. I work as an interventionist for Memphis City Schools during the school year, but these past summers I haven’t found a summer job. I ended up using all my savings and not being able to afford my home. The whole AHP staff was very instructional,” said Angela Johnson, whose $59,000 mortgage balance was reduced to $24,000 and $750 payment dropped to $400.

AHP has agreements to acquire over $19,700,000 in defaulted mortgages in July. “The banks and hedge funds selling these nonperforming mortgages want reliable buyers who close on time at fair prices. As we continue to perform, we are being offered larger and larger pools,” continued Newbery. ”We look forward to keeping more and more struggling families in their homes with realistic long-term solutions, while providing our investors the ability to earn favorable returns in a socially responsible manner.”

American Homeowner Preservation can be contacted at (800) 555-1055 or www.ahphelp.com.