ECONOMIC STIMULUS BILL WILL HELP MILITARY HOMEOWNERS NEEDING TO SELL

Many of my military homeowners stationed at Ft. Gordon, GA, are concerned about the flat real estate market in the Augusta area because they know they will be receiving orders in the coming months to PCS to another duty station. Some already have left the area, with a savings account significantly lighter since they were forced to write a check at closing just to sell the property. Others have made the decision to rent their homes for the next year or two in hopes the market will recover and they will eventually be able to sell their home and free up their VA certificate so they can purchase a home again.

Although the Augusta real estate market has fared reasonably well during the current economic downturn, the majority of our homeowners are no longer watching their homes increase in value annually. Gone are the days when you could reasonably expect your home to sell for approximately 6 percent more next year than this year. For the past two years, most homes in the Greater Augusta area -- from North Augusta to Evans to Hephzibah -- are worth about the same in 2009 as they were in 2007. And in some pockets of the community, these homes may be worth slightly less. Thankfully, we have not experienced the major pricing correction that other nearby cities have suffered. We certainly did not see our market and home values decline as it did in Atlanta.

For some, the option of renting is a possible solution -- at least for a year or two, in anticipation the real estate market will start to grow again soon. For others, renting their home is not an option. In our market, the current market's rental rates will not always cover the total cost of the mortgage loan, increased insurance costs, HOA fees and miscellaneous funds (such as setting up a repair or maintenance budget). As a result, these families may find themselves "between a rock and hard place."

Thankfully, the Stimulus Bill included some relief for these military homeowners experiencing hardship as a result of the mortgage crisis. The "Homeowners Assistance Fund" program will reimburse those military families who lose money on a home sale due to a forced relocation. You must have purchased a home before July 1, 2006 (an arbitrary date that supposedly signals with home values peaked nationally). According to The Washington Post, some $555 million has been earmarked for the Secretary of Defense to acquire title to a military person's property or reimburse the soldier for losses after a private sale or foreclosure. The program guidelines are currently being written for the disbursement of these funds.

Details on the program are expected soon and those interested in reading more about the program, should visit the following website: http://hap.usace.army.mil/

God Bless Those Who Serve and Protect Our Country and Our Freedoms ...

Ella Perry