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USAffordable Home Unveils Solution for Home Preservation Without Modification

Jacksonville, Florida's ""USAffordable Home LLC"":http://www.usaffordablehome.com recently introduced what it is calling ""a breakthrough product"" designed to preserve homeownership for those struggling to make their mortgage payments. Dubbed the Affordable Home Account, it is not a mortgage, and unlike other current proposals, it does not require modifying an existing mortgage, the company explained. In a press statement, USAffordable Home described it as an ""outside-the-box"" solution that eliminates the time, expense, and legal hurdles required in changing loans to reduce interest rates or postpone principal repayment.
Instead, the Affordable Home Account will provide fixed-cash payments to homeowners to make their monthly payments significantly more affordable. In return for these payments, homeowners will share half of the future appreciation of their homes with USAffordable Home investors. If there is no appreciation, homeowners will owe nothing. The account is targeted to address a broad range of homeowners - from the foreclosure-challenged, to first-time purchasers, to cash-strapped seniors - the company said.
""It's a 'hand up' instead of a 'hand out,'"" said Keith Conner, USAffordable Home's CEO. ""And it can make a dramatic difference in meeting household expenses. For homeowners with a 6 percent mortgage, for example, it will be like making the payment on a 3.3 percent loan,"" Conner explained.
Just as importantly, Conner and his team contend, it supports the recovery of housing values by reducing the supply of ""for sale"" foreclosed properties, as well as increasing demand with better qualified buyers. It will also provide seniors with an attractive alternative to a reverse mortgage or selling their homes, which further reduces the number of homes for sale, the company explained in a statement.
With this service, the company offers lenders and servicers ""a superior alternative to the expense and collateral depreciation that comes with foreclosures,"" USAffordable Home explains on its Web site. ""In many cases there will be no need for loan modification, interest rate reductions or principal forbearance. The program will increase the borrower's capacity for debt service and incent homeowners to maintain and improve the value of the collateral,"" the company says.
USAffordable Home is suggesting that the federal government use its account solution to provide long-term stimulus to the housing crisis. Not only does such an approach make homeownership more affordable for borrowers, but it promises to be an ideal, highly efficient ""investment"" of taxpayer dollars instead of an ""expense"" under the current Troubled Asset Relief Program (TARP) or the next stimulus package, the company said.
Accounts will also be financed by institutional investors -- including state and local pension funds, insurance companies, state housing authorities, endowment funds, and other public-oriented entities that wish to participate in residential real estate as an alternative and attractive asset class, the company explained. USAffordable Home said it believes investment in the program could result in above benchmark returns.
USAffordable Home said it plans to launch the patent pending product in February 2009. For additional information about this unique approach to home preservation, without loan modification, visit the company's ""Web site"":http://www.usaffordablehome.com.

About Author: Carrie Bay

Carrie Bay is a freelance writer for DS News and its sister publication MReport. She served as online editor for DSNews.com from 2008 through 2011. Prior to joining DS News and the Five Star organization, she managed public relations, marketing, and media relations initiatives for several B2B companies in the financial services, technology, and telecommunications industries. She also wrote for retail and nonprofit organizations upon graduating from Texas A&M University with degrees in journalism and English.
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