Does anyone know about American Home Preservation? The reason for my question are the two companies that are acting as the development Team.
Here is their website http://www.ahpoh.org/default.asp From the site they are a 501C3 corporation. Here is the press release that was on Sept 19, 2008 and the Local News in Cleveland is talking about it.
FOR IMMEDIATE RELASE
September 19, 2008
SUMMIT COUNTY PORT AUTHORITY UNANIMOUSLY APPROVES
12.5M BOND PACKAGE TO COMBAT HOUSING CRISIS
Tax-exempt bonds will fund nonprofit group providing alternative to foreclosure
(Akron, OH) -- The Summit County Port Authority voted to issue 12.5Mil in tax-exempt bonds to help citizens in the region who are facing foreclosure on their homes.
In a unanimous vote on Monday, the Authority approved the use of the bonds to help finance the work of American Homeowner Preservation Inc. ("AHP Ohio"). AHP Ohio, which is a new nonprofit organization in the state, is now accepting applications from distressed homeowners in the Summit County region who are in need of an alternative to foreclosure.
AHP Ohio's program allows qualified homeowners who are behind on payments and who owe more than their home is worth, a means of selling their homes and then leasing them back at affordable monthly payments. The program also offers participants the opportunity to repurchase their homes in three to ten years at an amount significantly less than the existing mortgage.
"The AHP Ohio solution is a win for everyone," said, AHP Ohio Executive Director, Rob Fredericks. "Families stay in their homes and avoid painful foreclosure proceedings, their children remain in familiar schools, and neighborhoods avoid the blight of additional foreclosed properties," he said.
The staggering number of Ohio homeowners defaulting on their mortgages has created an unprecedented housing crisis. According to RealtyTrac, Inc., Akron has the 12th highest foreclosure rate in the nation, with one in 43 households in foreclosure.
"We all know the housing crisis is hurting people and communities," said Akron Mayor Donald L. Plusquellic. "We welcome AHP Ohio and are pleased they are joining us and others in the effort to solve the housing crisis," said Plusquellic.
"It is going to take collaboration of the nonprofit, public and private sectors to protect and preserve our neighborhoods," Plusquellic said.
The tax-exempt bonds issued by Summit County Port Authority will be underwritten by Gardnyr Michal Capital, Inc.
There are no fees or costs to apply and participate.
Those interested can attend informational sessions with AHP Ohio representatives any time between Noon - 5:30 PM on Wednesday, September 24 or Wednesday, October 1, 2008 at the Senator Oliver R. Ocasek Government Office Building in downtown Akron. Address: 161 South High Street Akron, OH 44308.
To learn more, residents can also call AHP Ohio at 330.470.4200 or visit the web site at www.ahpoh.org.
The home page of their site says
"A community-based solution to reducing foreclosures in our Ohio neighborhoods
Are you one of the staggering number of Ohio homeowners at risk of defaulting on your home mortgage? An alternative to foreclosure exists that would keep you in your home, your kids in their schools and help preserve your neighborhood. American Homeowner Preservation Inc. provides at-risk homeowners with a solution that helps everyone.
American Homeowner Preservation Inc. is a nonprofit organization that provides homeowners who are behind on payments or in foreclosure a way of selling their home and then leasing it back at an affordable monthly payment. The program will also provide participants with the ability to repurchase their home in three to ten years at an amount significantly less than the existing mortgage. There are no fees or costs necessary to register and apply.
The American Homeowner Preservation Inc. solution is a win for everyone. Families stay in their homes, communities remain vibrant and lenders recover their investments."
From the site they show the Development team as
Website http://www.beaconman.com/
BEACON can provide all of the services necessary to maintain your investment property. Each account being individually tailored to our client's specific needs, we can provide as much or as little assistance as you may require.
Our agents can help you find a home that meets your expectations. We offer homes to meet a wide variety of incomes, sizes, and tastes.We have a friendly office staff and full time maintenance persons to help you with any of your concerns. Call us to begin the search for your new home now.
Website http://www.gardnyrmichael.com/
GMC is a full service investment banking firm that specializes in public finance. Started in 1991, the firm has grown from two professionals to approximately twenty with offices in Alabama, Louisiana, Georgia, and Florida.
The Firm specializes in underwriting, private placement and financial Advisory work for states, cities, counties, and their authorities as well as for more specialized issuers such as 501c3 and special districts.
The firm maintains all major public finance disciplines including originations, structuring, research, sales, and underwriting. While we are not a large national firm, we are a regional firm that has grown steadily as many other firms have exited the market. Since 1991, our professionals have completed over $15 billion in public
Here is an additional link http://www.building-cincinnati.com/2008/07/ahp-wants-cincinnati-support-for-lease.html raises some questions.
Any input from Cincinnati or Columbus Realtors would be appreciated.
American Homeowner Preservation has a great concept. Most other programs help families by modifying loans to reduce the interest rate and payments temporarily. However, this does not rectify the underwater situation where families owe $100,000 on a house worth $70,000. AHP addresses this, providing a long-term solution for homeowners in trouble. My understanding is that AHP started a pilot program in Northeast Ohio to test their concept and then did not get the bond financing they anticipated, and that they are now using conventional financing to buy the homes to keep the families from foreclosure. We should support AHP and similar programs: this is a solution which costs no taxpayer money and works because the losses are taken by the banks, which is the way it should be.
I learned recently that American Homeowner Preservation has become an investor-based firm. After researching the company, I've learned that it yields a much higher return than buying into other investments in such a tough economy. It's less demanding since the company negotiates with homeowners and banks to allow the investor to buy the title of the house going into foreclosure, with a contract allowing the family to stay in the home. American Homeowner Preservation has a management company that takes care of the property, and the family is charged a rent based on their income. The family has the option of purchasing the home back from the investor within five years, and can have the investor sell the home at any time and gain the funds above the option price. Because the investor has the safeguard of owning the title and having a signed contract by the family, it seems like a much safer investment than owning stock at the moment.