Helping Borrowers Buy Back Homes
Cincinnati-The main goal of American Homeowner Preservation here is to evaluate a lender's nonperforming mortgage portfolio and provide an innovative liquidation opportunity. The company buys these loans secured by low-valued homes at under $75,000 and keeps the homeowner as a tenant.
The program consists of lenders referring delinquent borrowers to AHP along with a target net recovery amount. AHP then contacts the borrower, explains the program and schedules a home inspection.
Most borrowers are thrilled with AHP's offer, with an option to lease and repurchase the home at greatly reduced prices from what they previously paid. Thus, AHP is often able to close referrals in 15 to 45 days, says AHP director Jorge Newbery, who has 17 years of real estate experience with a specialty in distressed property.
If a homeowner comes to AHP and says he wants to stay in the home, the homeowner will sell it to the company, who will still work with them to get an affordable lease that's not more than a third of their income and a favorable option to repurchase. Most of the families it helps have credit challenges and AHP provides counseling to help get them in a position to qualify to repurchase their home with an FHA loan. The target date is usually three years.
"Our challenge is we stall at the servicer level on many occasions. It's improved of late and hopefully it will improve more."