Common FAQ's

What is the AHAA Homeowner Protection Plus (AHPP)? AHPP is a Homebuyer Mortgage Payment Protection & warranty program, commonly used as a Real Estate marketing tool.

How does AHPP serve as a marketing tool?In a home sales environment where the most common remedy to slow-moving listings is to lower the price, AHPP serves as a highly effective alternative .

How is AHPP used as a “tool”? Optimally, AHPP is discussed with a Seller at time-of-listing either as an immediate Sales Incentive or, in the event that in 60 days a Full List Price offer has not been made, AHPP is offered  in lieu of reducing the price. Statistics have long proved that the average price reduction agreed to between Buyers and Sellers is 6% or more. AHPP is designed for Sellers who have decided on a willingness to negotiate.

Why not just lower the asking price of the property? Mainly because that is exactly the same strategy being used by every other real estate agent in the neighborhood and the evidence of the ineffectiveness of that strategy fills the MLS books.

What’s the benefit to the buyer of AHPP? Reducing the List Price only results in a financial benefit that is realized by the Buyer in small increments over many, many years by way of a slightly smaller mortgage payment. Conversely, offering AHPP in lieu of a price reduction produces many immediate protections to the buyer; including mortgage payment protection that begins just 30 days after the purchase and an opportunity for the savings Rebate if the homebuyer demonstrates responsible homeownership.

Can AHPP just be added to the Selling Price? The use of the AHPP should not change a home’s Contract Purchase Price. When the “Protection Program” is misused to arbitrarily raise the home’s selling price, this not only creates an inflated home price, but it also creates severe credibility issues between parties to the transaction, and possible loss of sale due to appraisal issues.

Who can enroll a property in the Homeowner Protection Plus? Any lender, builder, seller or Realtor can enroll a home in AHAA Homeowner Protection Plus.

How much will participating in the program cost me? There is no cost to the home buyer.  Home sellers/builders are charged a percentage of the contract sales price for enrolling their property in the AHAA Homeowner Protection Plus Program (This is a percentage determined by the seller ranging from 3-5% of the contract purchase price).  The fee is not due until settlement and is deducted from the seller/builder’s proceeds.

What if a Buyer wants to buy the home but is not interested in AHPP? That’s simple. The Buyer is under no obligation to accept AHPP.

 Once the Seller agrees to enroll and market their property with AHAA Homeowner Protection Plus, are they obligated to pay the fee? No. The Seller is not obligated in any way to AHPP and is able to negotiate any terms desired with the Buyer. No fee is paid to the AHPP unless a Buyer and Seller enter into an agreement, the AHPP Contact Addendum has been signed and the home settles.

What happens if an individual is a member of AHAA Homeowner Protection Plus and finds them-self not able to make their monthly mortgage payment?Should a Buyer find themselves in a hardship that prevents them from being able to make their mortgage payment, the homeowner can submit a claim and their payment will be made for them from their allocated mortgage protection fund. The total mortgage payments made by AHAA cannot exceed the mortgage protection funds available.  If 2 mortgage payments are missed, an AHAA counselor will contact them to review their loss mitigation options and help them get back on the right track. 

There is a detailed agreement and disclosures that the Buyer will receive; containing an array of valuable benefits, helps, and aids designed to do everything possible to help homebuyers keep their homes in the event of financial adversity.

Does the seller pay taxes for participating in AHAA Homeowner Protection Plus? Is the Enrollment Fee tax deductible? Please consult a tax advisor regarding any possible tax implications.

What does a homeowner have to do to get their personal savings plan in place? Within 14 days of closing on their new home, an AHAA post-purchase counselor will contact them to help them create a personal savings plan.

How does one take the online homebuyer/homeowner education course? Simply log-in to www.ahaanow.org and select the education tab.

How does a member make a claim for a Rebate? One can submit the Rebate claim form (found on the website www.ahaanow.org) by simply following the instructions listed on the form. This may be done any time after the one year anniversary of the home settlement. All mortgage payments must be current,  they must have completed the online homeowner education course and  must be able to show verification of a personal savings account; the Rebate is limited to the amount of funds remaining in their mortgage payment protection account.

Can I elect to continue my Mortgage Payment Protection? Yes, a homeowner may elect to continue their mortgage payment protection coverage indefinitely vs. taking the rebate.