Kenyon Meadows MD interviews Jorge Newberry CEO and founder of American Homeowner Preservation (AHP). AHP raises money from investors and buys up distressed mortgages from banks at deep discounts often in low income neighborhoods. They then work with the borrower to come up with a financial solution to keep them in their home. This often includes writing off several thousand dollars of debt, lowering interest rates and extending the term of the loan. Because the mortgage are acquired at such deep discounts, American Homeowner Preservation has the ability to offer these substantial modifications while still paying attractive returns to investors in the 12% range. Additionally the investment minimum is just $100, making it an incredibly affordable way to participate in in this alternative real estate asset while stabilizing neighborhoods.
We talk about the lingering aftermath of the mortgage crisis, and delve into a case study of a borrower who was able to stay in their home after an AHP modification.