DUE TO CONTINUED STRONG DEMAND, AHP SERVICING TEMPORARILY PAUSES NEW INVESTMENTS
Chicago, IL, May 21, 2019 – AHP Servicing, a specialty servicer of past due residential mortgages, announced today that they will be temporarily pausing new investments in their $50 million Regulation A Offering at the end of the week due to a strong influx of investments.
AHP Servicing uses crowdsourced funds for servicing operations and to purchase past due loans at a discount, working with financial institutions to purchase loans that have fallen behind in payments but have the potential to be restructured or settled. It then works with homeowners to find consensual solutions to stay in their homes or resolve their debt at a discount.
“The response to our current offering has been tremendous. To date, we have raised nearly $15 million of the targeted $50 million fund raise. To ensure that we are prudently placing those funds, we will pause new investments until the funds received are substantially committed to loan purchases,” announced DeAnn O’Donovan, President & CEO of AHP Servicing.
To date AHP Servicing has purchased $2 million in loans and has approved bids on an additional $1 million in loans which they anticipate closing in the coming weeks. AHP Servicing remains committed to value investing in non-performing loans that have the possibility to be restructured or settled.
"This disciplined approach takes time, particularly as we’ve seen prices for many larger portfolios bid up considerably in the last several months, with some investors targeting sale prices at 80 or even 90 cents on the dollar for defaulted loans. While we continue to bid on these larger portfolios, we are finding more success bidding on smaller and off-market transactions to fill the loan purchase pipeline," explained DeAnn O'Donovan.
AHP Servicing intends to resume sales after the funds raised are substantially committed to new investments.
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