What is American Homeowner Preservation?

[flippinout]

American Homeowner Preservation is an Ohio based company that buys distressed homes and rents them back to the owners. This way the owners can stay in their homes but yet the homes dont belong to them at this point but they still have to maintain the upkeep.

This is the idea about this kind of a deal:

In the plan Baker proposed in 2007, the former homeowner of a foreclosed property could remain in the house as a renter indefinitely, paying fair market rent as determined by an independent appraiser. Baker aimed to create an explicit homeowners' right to rent.
"After the foreclosure, the mortgage holder would now own the house and be free to sell it to another person," Baker wrote in Talking Points Memo. "But the former homeowner would still have the right to remain as a renter, regardless of who owned the house."

The bad part of this situation is that the rent money does not count toward the amount owed on said property and the owner can sell the house at any time. And at a later time, the renter/former owner can buy the house back.

Somehow, this just doesnt sit right with me. And if the previous owners couldnt afford the house payment, how do they afford the rent payment and why not just add to the rent payment and keep the house?