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American Homeowner PreservationHow to Stay in Your

Home

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1. Do you owe more than your home is

worth?

2. Do you have a stable income source?

3. Do you want to stay in your home instead of

foreclosure?

Do You Qualify?

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AHP Mission

AHP Help!

1. AHP investor

buys your home via

short sale—creating

equity and preventing foreclosure

4. Allows homeowner

to repurchase

home at price

significantly less than existing

mortgages.

2. Leases your home to you for no more

than 33% of income

3. Records option to

ensure that you benefit from equity created by short sale

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AHP True Success Story

An Akron homeowner refinanced for $72,000 in February, 2006 and housing expense was $730/month.

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

She now pays $405/month and has option to repurchase her home for $17,538.

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Getting Through The Terms

Short Sale: when a lender allows you to sell a home for less than amount due on existing mortgages

Equity: The value of a property, minus debt and/or other obligations

Recording the Option: Recording encumbers the property and creates a public record

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Apply, Negotiate, Close, Lease, Buy Back

1. Submit documents required by lenders

2. List home with AHP affiliate agent

3. Sign preliminary AHP offer to purchase

Step One: Apply

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Negotiate

Required by lenders to initiate short-sale

1. Low offer to stimulate negotiations

2. Unlikely to be approved by lender3. May take months for approval

AHP purchase offers protect participants

4. Dependent upon lender approval5. Satisfaction of all debts and liens

required6. Lease payment identified7. Repurchase price identified

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Close

At closing, homeowner and investor sign:

1. Lease agreement2. Option agreement

Homeowner pays: 1. First month’s rent2. Security deposit

Approval

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Lease

Rent is comparable to similar homes Any amount over 33% of income may be deferred and

added to option price. 5-year lease with payment amounts

increasing 3% annually.

Repairs escrowed at closing and completed within 60 days Cost of additional repairs and maintenance during

lease period added to option price

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Buy Back

1. Work with counselor to qualify to repurchase ASAP

2. Repurchase anytime before the end of 5-year contract

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Repurchasing Your Home

Homeowner can repurchase home for amount AHP Investor acquired home for, 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

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The Golden Parachute

If participant moves/chooses not to exercise option to repurchase, home listed for sale.

The participant receives 50% of net seller proceeds over the option price at closing

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More About Golden Parachute

Sale price:$50,000 value increased during lease

Less selling cost: $5,000 closing, commission, etc

Less option price: $17,538

Proceeds to participant: $13,731

50% of Net Seller Proceeds

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Repairs

2. AHP includes repair costs in short-sale acquisition cost and places the money in escrow.

3. Repairs completed after transfer of sale; Cost added to repurchase price

1. Home Inspector estimates repair costs.(Report paid for by homeowner to any inspector. Typically costs $200-300)

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Housing Counseling

1. Budget counseling2. Credit score improvement3. Down payment savings plan4. Review financing options at

the time of repurchase

The participant may receive financial counseling, including:

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FHA Loans

FHA may provide you with a low down-payment loan at favorable

rates:2 years after bankruptcy3 years after foreclosureMust establish positive creditAlternative credit in good

standing: lease, utilities, cable, phone

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How Much Will This All Cost?

You pay NO fees to AHP: No application or upfront fees No monthly option to purchase

fees or appraisal fee. No cost for financial counseling

Your only cost includes: Home inspection fee to firm of

your choice. 1st month’s rent & security

deposit at closing

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Remember…

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

You may cancel the AHP foreclosure prevention process any time prior to closing with no obligation

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American Homeowner Preservation

Call 1-800-555-1055

Web: www.AHPoh.orgEmail:

info@AHPhelp.com