AHP Homeowner Get Started Presentation

Homeowners whose homes are worth less than their mortgage

Homeowners who have astable source of income

Homeowners who prefer to remain in their homes in lieu of foreclosure

AHP will realize their mission by:

Purchasing the home from the homeowner via short-sale

Leasing the home back to the homeowner at an affordable payment

Recording the option enables the homeowner to repurchase the home at a pre-determined price

Giving the homeowner the opportunity to repurchase the home at a price significantly less than what they previously owed.

Creating equity for the homeowner

A “short-sale” is when your lender allows you to sell your home for less than what is owed to them to satisfy the entire balance due.

AHP takes it a step further by negotiating a purchase price below your balance due AND below the current market value of your home.

AHP will always attempt to purchase the home for the lowest price possible

Rent will not exceed rent of comparable properties in the area

Five year lease with payment amounts

established at three percent. Repairs and maintenance

Major defects that require immediate repair are escrowed at closing

and completed within 60 days Additional repairs and maintenance during the lease

The option to purchase is recorded with the County Recorder to protect the participants’ interest in their homes

Recording the option ensures that participants benefit from the equity created by AHP’s short-sale purchase

The homeowner can repurchase the home for the amount it cost AHP-Affiliate Investor to acquire the home, plus:

15% in years 1 and 2 20% in year 3 25% in year 4 30% in year 5 Plus cost of repairs needed during the

lease period

AHP will create instant equity by purchasing the home for less than its current market value

Homeowner’s repurchase price will remain significantly below what was previous owed on the home.

Homeowner can direct the AHP-Affiliate Investor to sell the home at any time. All net proceeds at time of sale above the option price are paid to the homeowner

Repairs

Financial Counseling

Homeowner never has to leave home during the AHP process

Home Inspector estimates cost of repairs

AHP includes repair costs in short-sale acquisition cost

Estimated cost of repairs placed in escrow

Repairs completed after the transfer

AHP-Affiliate Investor pays for repairs during lease period

The cost of repairs will then be added to the repurchase price

The participant will receive financial counseling

• Budget counseling• Credit score improvement• Down payment savings plan• Review financing options at the time of

repurchase

The goal is to qualify you to repurchase your home with an FHA loan ASAP

FHA will provide you with a low down payment loan at favorable rates:

Two years after bankruptcy Three years after foreclosure Must establish positive credit Alternative credit must be in good

standing: lease, utilities, cable, phone

An Akron homeowner refinanced her home for $72,000 in February, 2006

Her monthly housing expense was over $730

CitiResidential eventually approved AHP’s short sale purchase for $15,250

Participant now leases home for $405 monthly (saving $325 per month)

Participant can purchase the home for $17,538…the same home she refinanced for $72,000 in 2006

Dec 22 Dec 23

Value $30,000 Value $30,000

Loan $70,000 Option $17,538

Equity - $40,000 Equity + $12,462

AHP creates equity forfamilies who have none!

If the participant decides to move or chooses not to exercise the option to purchase, home will be listed for sale.

The participant will receive at closing all net seller proceeds over the option price

Within the five year lease period, the participant does not exercise the option (for any

reason) and authorizes AHP to sell the home

Sale price (value increased during lease)………………….. $50,000

Less selling costs (closing, commission, etc)……………. -

$5,000

Less option price ………………………………............ - $17,538

Proceeds to participant…………………………...

$27,462

List house with local AHP-Affiliate Agent.

Complete Application

Submit documents required by lenders

Sign preliminary AHP offer to purchase

Once lender responds to offer favorably:• Home inspection• Homeowner pays for

inspection to firm of their choice provided they agree to use AHP report format. Inspection fee is often $200-300.

Required by lenders to initiate short-sale negotiations • Low offer is designed to stimulate

negotiations• Unlikely to be approved by your lender• Negotiations may take months to conclude

AHP purchase offers include contingencies to protect participants• Contingent upon short-sale settlement • Satisfaction of all debts and liens required• Lease payment amount specified• Option to repurchase amount specified

Upon lender approval the monthly lease payment and repurchase price will be finalized

You will review and approve final terms including lease and option amount

AHP-Affiliate Investor purchases your home

At the closing, execute:•Lease agreement•Option agreement•Deed transfer•Pay first month and

security deposit due

Begin making monthly lease payments

Work with counselor to get qualified to purchase ASAP

Repurchase anytime before the end of the fifth year repurchase your home

Your lender has the final authority to approve AHP’s offer, which may not be accepted

If AHP’s offer is not accepted by your lender, AHP will continue attempts to negotiate with your lender until all options have been exhausted.

Rejection of AHP’s offer by your lender is simply the first of many rounds in the negotiation process• Expect rejection letters• AHP will continue to negotiate

You pay NO fees to AHP:• No application fee• No upfront fees• No monthly option to purchase fees• No appraisal fee• No cost for financial counseling

Your only fees are: • Home inspection fee to firm of your choice.• Legal fees, if needed, to attorney of your

choice.

Your pre-determined repurchase price equals:• The acquisition cost of your home by an

AHP-Affiliate Investor• Include $2,000 Program Fee to AHP• Plus 15% - 30%• Plus cost of any repairs paid by AHP-

Affiliate Investor during the lease period

AHP’s primary goal is to return your home to you as soon as possible

There is no obligation! You may cancel the AHPforeclosure prevention process any time prior tothe closing

“The best suggestion you may give to a friend or family member in danger of losing their homeis to call American Homeowner Preservation”