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.

BBB: American Homeowner Preservation Gets an 'A'

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 Helps Phoenix Pastor Avoid Foreclosure

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Ines Silva has been a Pastor for over 35 years, guiding hundreds of families through the challenges which they encountered. Yet, when the Silva family found themselves at risk of losing their Phoenix, Arizona home of twenty years to foreclosure, Pastor Silva turned to American Homeowner Preservation to provide a long term solution to his family's crisis. As a result, the home was sold for $32,000 to an AHP investor, who provided the Silva family a five year lease to stay in the home at $639 monthly, 40% less than their previous $1,064 mortgage payment. In addition, the Silva family received a recorded option to repurchase their home at $36,800, 75% less than their prior $152,000 mortgage balance.
"The entire process was surprisingly very simple. When we saw 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 today's market value," said Pastor Silva. "Overall, we love AHP for helping us save our home. Bottom line, we are blessed for what AHP has done and would recommend that anyone going through tough times take a chance and let AHP help them," he continued. "AHP is pleased to be able to keep families in their homes with a win-win solution for homeowners, investors and lenders. To help a family such as the Silvas, who have dedicated their lives to their community, is particularly gratifying," said AHP media director John Wills

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

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.

ING Direct Blacklists American Homeowner Preservation

ING Direct, the Dutch-bank and internet-based mortgage lender, has objected to American Homeowner Preservation’s program to keep families in their homes, and ING will no longer consider AHP short sales. “ING DIRECT will also be adding your company to our exclusionary list as your company strictly finds investors to keep sellers in their home, while the bank takes a significant loss.  This is against ING DIRECT’s short sale policies and guidelines, and as such you will no longer be able to work on this short sale file or any future ING DIRECT accounts,” Adam Agostinelli of ING Direct Retail Asset Management advised in an email to AHP. “We are disappointed in ING’s failure to recognize that AHP’s program can reduce ING's losses and concurrently keeps struggling families in their homes,” stated AHP’s Michelle Weadbrock.
Although ING Direct President Arkadi Kuhlmann (pictured atop motorcycle) has rightfully bragged of ING's lower-than-average 2.88% default rate, ING did require a bailout by the Dutch government and has recently been accused of violating federal truth-in-lending laws. In addition, Kuhlmann states that “the European Commission has mandated that we be sold by 2013” as part of a move to break up large financial institutions. Is now the time  for ING Direct to amend their short sale policies so that maximizing ING’s recovery while allowing families to remain in their homes is an option?