AMERICAN HOMEOWNER PRESERVATION HELPS FIRST-TIME CHICAGO HOMEBUYER FIX A BIG MORTGAGE MISTAKE

Chicago, IL (PRBuzz.com) August 22, 2013 -- American Homeowner Preservation (AHP) announced today a successful mortgage modification for first-time Chicago homeowner Mattie Griffin, helping the Griffin family avoid foreclosure and stay in their home. AHP was able to provide the Griffins with a principal reduction of 77%, a monthly payment reduction of 75% and settlement of delinquent payments for just 7% of the total owed, making the home and mortgage affordable for them in the long run.

Griffin, a hard-working florist, provides a home for herself, her children and several of her grandchildren. She purchased the home to provide her family with a sense of security and a place to call their own. As a first-time homebuyer, she didn't know much about mortgages when she went through the process, and she trusted that the person who sold her the mortgage was offering her a good deal. She ended up with a large monthly payment of around $2,500 and an interest rate of nearly 10%, much higher than the going rate, but she believed that it was the best she could do - at least that's what they told her.
The payments were high, but she managed to make it work. Then, the economy crashed and Mrs. Griffin's income dropped dramatically because business was down - people who had lost their jobs were not buying flowers, they were struggling to survive. In an economy in recession, the mortgage quickly became more than the family could manage, and they fell behind on their mortgage payments.
Mrs. Griffin's attempts to modify her mortgage with her original lender or refinance through another lender were labor-intensive and ultimately unsuccessful. By the time she received an offer letter from American Homeowner Preservation, she had little hope she would be able to keep her home.
When she received her AHP offer letter, she and her family were very skeptical - they thought it was a scam like so many other offers they had received that went nowhere. However, after researching AHP and talking to a mortgage broker who confirmed that the organization is legitimate, they went to the AHP offices in Chicago to discuss their offer.
"American Homeowner Preservation was different from everyone else we had dealt with," said Theos Griffin, Mrs. Griffin's son. "Other lenders treat you like just another business deal - they couldn't care less about you. AHP was understanding, sympathetic and sensitive to our situation - they treated us like people, not numbers, and they really wanted to help us keep our home. It was a big difference."
Jorge Newbery, Founder and Chief Executive Officer of American Homeowner Preservation, says the Griffins' situation is not all that uncommon. "Mortgages can be very complex, and first-time homebuyers often don't understand how to evaluate the mortgage someone is selling them  compared to other options that might be available," he said. "Unfortunately, mortgage lenders are often incentivized to sell mortgages that may not be the best for a particular family's situation, because they earn a higher commission. So it's important for all buyers, especially first-time buyers, to carefully consider all aspects of their mortgage before they make a final decision and to make sure that they are getting the best deal they can." Newbery continued, "In the Griffins' case, there was never any intent to not pay, they just needed a mortgage they could afford given their new economic reality. It is very gratifying to be able to offer this family the fresh start they needed to be able to stay in their home."
Theos Griffin says the family really appreciated AHP's approach and is very thankful for the help. "They made us aware of options we hadn't even thought of and explained everything to us clearly, so we know what we were signing up for and that it would be workable for us." He concluded, "We were in disbelief that it could be real, that there could be a way to stay in our home. Once we realized we could, we were overjoyed. We were very satisfied with what American Homeowner Preservation has done for us."

American Homeowner Preservation purchases pools of challenged mortgages from banks and other lenders and then offers borrowers solutions 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 foreclosure and preserve neighborhoods, please visit www.ahphelp.com, call (800) 555-1055 or email info@ahphelp.com.

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 and Millstone Landing Collaborate to Lease Option Homes

American Homeowner Preservation LLC, pioneers of the short sale leaseback to assist families at risk of foreclosure, has entered into an agreement with Millstone Landing LLC, the owners of a gated 613 single family development in Vero Beach, Florida, to offer lease options to credit-worthy buyers who cannot obtain financing in today's tight credit environment. Millstone Landing features newly-built quality homes nestled amongst lakes and a nature preserve.

The original developer, Shelby Homes, ended up in bankruptcy after defaulting on a construction loan amounting to $370,000 per home. In 2008, the average sales price of a Millstone Landing home was $618,000. Today, these same homes are offered new for under $260,000, and AHP investors can acquire for $155,000 subject to the leases and options to the end-user buyers. Typically, the end-user buyers are paying Millstone Landing a 10% option deposit and receive a two-year option and two-year lease. The monthly payments average $1,900 monthly, with $900 being credited to the eventual purchase.

For example, a British airline captain, who earns $120,000 annually from his six-year position with BMI Airlines, is under contract to purchase a 3,200 square foot Millstone Landing home for $235,000. Having difficulty qualifying for financing due to their foreign national status, this family wants to execute a lease and option now in order to take advantage of today's depressed prices. After paying a $30,000 deposit, this family can exercise their option to purchase anytime over two years by paying the remaining $205,000. The AHP investor buys the home for $155,000 and receives $1,905 monthly. When the option is exercised, AHP's investor receives $170,500, AHP receives their program fee of $7,750 and the subdivision owner receives the remaining $26,750 minus the $900 monthly credited towards the option price.  In this case, the captain intends to sublet the home until relocating in the future. Similar homes nearby lease for $1,400 - $2,250. The projected annual return to AHP's investors is 16%.

"If financing was readily available, we would be sold-out. However, many prospective buyers cannot qualify for financing, despite strong income and positive credit histories. Thus, American Homeowner Preservation's Lease Option program is a tool which enables us to sell our homes faster. We do take a bit of a hit on the pricing in order to deliver the yield AHP's investors require, plus we have to defer some of our return," said Brian Plunkett, one of Millstone Landing's principals. "Still, the ability to promptly move our inventory and save many months of holding costs makes AHP a good solution for Millstone."

"We are delighted to expand the use of AHP's Lease Option model, particularly at a high-caliber development such as Millstone. The U.S. housing market will remain weak until the excess inventory is sopped up. With a dire lack of financing, many families are unable to take advantage of  today's depressed pricing," said AHP's Director Jorge Newbery. "AHP's Lease Option program fills a void, getting families into homes at attractive prices and terms, facilitating the rapid disposition of inventory by subdivision owners and generating strong returns for AHP's investors." 

American Homeowner Preservation Helps Keep Veterans In Their Home

We came across AHP while out looking for a place to rent since our house was scheduled for sheriff's sale. We had been working for months with a loan modification company. The only thing they did for us was take our money. We told our story to the landlord of a prospective rental home and he hooked us up with AHP. We can never thank him or AHP enough. AHP and Jorge Newbery went above and beyond to help us stay in our home. We now have the opportunity to purchase our home back in a few short years. My husband and I settled in our home after returning from military service overseas. Our children have grown up here and we have all established deep roots in the community. It would have been devastating to move. Thankfully, we no longer have to worry about that. We did plant our Blossoming Cherry tree that we promised our children if we stayed here. It is very beautiful and has blossomed for the first time this summer. I would tell others going through the same thing that we did to not give up. They should not allow their desperation to steer them in the direction of unscrupulous loan modification companies. AHP is the all that they say they are and then some. Thanks to the grace of God and AHP we are able to stay in our home and continue making memories.

We Saved Another One!!

AHP helped us save our home. Without the help of GOD first, AHP and the our real estate lawyer, the bank would of foreclosed on our home. I was laid off of my job in December 2010 and could not qualify for any bank program, which we couldn’t afford anyway. My husband and I owed $192,000 on our home and AHP negotiated the sale for $60,000, approx 70% savings. Now we can get our home back at an affordable price and we never had to move. Our friends and family didn’t believe the program would work, but now they have seen the results for themselves. The people at AHP really work hard for their clients. I have never seen such wonderful customer service and dedication in the owners and staff at AHP. We are constantly recommending AHP to our friends and family who are facing a similar situation.

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.