AHP today announced an initiative to offer bulk REO pools for sale. In order to promptly put vacant homes back in service, thereby mitigating blight in communities, AHP will sell multiple geographically-concentrated pools of vacant REO. These are expected to be sold primarily to investors, who will repair and resell to home buyers or operate as rentals.
AHP purchases pools of distressed mortgages from banks and then offers homeowners sustainable solutions to stay in their homes. Oftentimes, owners no longer want to keep their homes or have already moved out. In these instances, AHP offers cash incentives for families to execute a Deed in Lieu of Foreclosure in order to short cut the often lengthy foreclosure processes.
Properties featured in these bundles will typically be lower-value homes. “Selling these homes in bulk at discounts speeds dispositions and can yield a greater return for AHP. The closings costs and commissions involved in selling a $10,000 home can be vastly disproportionate to what AHP nets. By creating bulk packages, there are savings and efficiencies,” said AHP Founder and CEO Jorge Newbery. To wit, AHP’s first bulk offering features ten properties in the St. Louis, Missouri area. The properties are individually listed for $93,100 but can be purchased in the bulk offering for $75,000. Typical of the expected make-up of these bulk offerings, the St. Louis pool features eight single family residences, one condominium and one vacant lot. Future pools are planned for cities in Ohio, Michigan, Florida and Tennessee, and AHP expects to continue to expand this initiative to additional markets.
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