AHP Servicing, a specialty servicer of past due residential mortgages, has inaugurated a $50 million offering designed to help keep homeowners out of foreclosure.
AHP and other financial organizations purchases loans that have fallen behind in payments but could be restructured or settled—using crowd sourced funding. It then works with home owners so they can stay in their homes, or resolve their debt at a discount.
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DeAnn O'Donovan[/caption]
"AHP empowers socially responsible investors to help financially strapped borrowers and homeowners retain their properties while offering investors a competitive preferred rate of return," said DeAnn O'Donovan, president and CEO of AHP Servicing. "We're flipping the switch on the traditional loan servicing model so that ROI is judged not just by dollars, but also by sense. We create a purpose in addition to creating a profit."
Investors can realize returns as high as 10% annually, distributed in monthly dividend payments to investors, assuming the investment is held for at least two years. If funds are withdrawn earlier than two years, returns will be lower. The aim is to return the principal within five years. So far, AHP's prior offerings have not missed a monthly distribution.
"Our offering diversifies investor returns into an asset class that is not correlated to the stock market," O'Donovan noted. "What's more, our offering is available to both accredited and non-accredited investors. We offer best efforts liquidity and seek to deliver monthly distributions with annual preferred returns up to 10%."
AHP Servicing seeks socially responsible investors who are looking for investments that make real differences in people's lives, and socially conscious investment advisors, their clients and foundations to invest in the offering.
AHP Servicing’s sister company, American Homeowner Preservation, is a crowdfunded offering with a 10-year track record of socially responsible investing that keeps financially distressed homeowners in their homes.
