SOURCE: American Homeowner Preservation

Foreclosure prevention

April 06, 2010 07:06 ET

American Homeowner Preservation Expands Foreclosure Prevention Program Nationwide

CINCINNATI, OH--(Marketwire - April 6, 2010) -  American Homeowner Preservation (AHP) today announced the expansion of an innovative foreclosure prevention program to keep families in their homes in eight States hit hardest by the housing crisis. AHP's program allows homeowners who owe more than their homes are worth a means of selling their homes and leasing them back at affordable monthly payments. The program also offers participants the opportunity to repurchase their homes at amounts averaging 54% less than what was owed on their underwater mortgages.

"The AHP solution is a win for everyone," said American Homeowner Preservation Director Jorge Newbery. "Families stay in their homes, lenders receive prompt cash dispositions on troubled loans and neighborhoods avoid the blight of additional vacant bank-owned homes. The expansion from Ohio to Arizona, California, Florida, Georgia, Illinois, Michigan, and Nevada will enable thousands of families to avoid foreclosure." According to a recent First American CoreLogic report, more than 7.6Million of the 20.8Million mortgages outstanding in these eight States are underwater, with homes worth less than existing mortgages.

Families unable to qualify for a mortgage modification and other foreclosure relief efforts have found AHP to be their best solution. "I have four children and do everything I can to fight and hold on while looking for work and maintaining the home for my children," said David Droge, 47, who was assisted through the AHP program. Laid off from his job in flight operations and owing $201,000 on his Akron home now worth under $100,000, "I was left with not many options" to pay the $1,700 mortgage payments. American Homeowner Preservation was able to get Droge's existing lenders to approve his short sale, and Droge's lease payments are now $958 plus he has a recorded option to repurchase his home for $59,668. "Our goal is to keep families in their homes with a lease they can afford and give them an option to repurchase at an attractive price. This creates incentive for families to stay, pay their lease and then repurchase," said Newbery. AHP provides counseling post-closing to maximize the likelihood that families will qualify for financing to repurchase in the five-year option term.

AHP does not charge fees to homeowners. Informational sessions with AHP representatives are scheduled in the eight States starting April 20 in Cleveland, Ohio.

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