Military Service members have options instead of foreclosing! There is a better way

HOMEOWNERS' ASSISTANCE PROGRAM FOR MILITARY SERVICE MEMBERS

The Department of Defense (DOD) is proud to offer the Homeowners Assistance Program (HAP) to eligible service members and federal civilian, including non-appropriated fund, employees. The program is authorized by law, and administered by the US Army Corps of Engineers (USACE) to assist eligible homeowners who face financial loss when selling their primary residence homes in areas where real estate values have declined because of a base closure or realignment announcement.

The American Recovery and Reinvestment Act of 2009 (ARRA) temporarily expands the HAP to assist service members and DOD employees who are wounded, injured or become ill when deployed, surviving spouses of service members or DOD employees killed or died of wounds while deployed, service member and civilian employees assigned to BRAC 05 organizations, and service members required to permanently relocate during the home mortgage crisis.

First

There has to be an announcement of a base closing or realignment action which affects your community.

Second

A determination must be made that real estate values have dropped as a direct result of the base closing or realignment announcement.

Eligibility

The applicant must be a military service member (including Coast Guard) or federal civilian employee (including non-appropriated fund) assigned at or near the installation announced for closure or realignment.

Also Eligible Are:

• Civilian and military personnel on overseas tours who transferred within three years prior to the announcement and who are homeowners in the area. Civilian employee homeowners on overseas tours with reemployment rights in the area affected by the announcement. Military member homeowners ordered into on-post housing within six months prior to the announcement.
• All applicants must have been the owner-occupant of their homes for which assistance is being requested on the BRAC announcement date which is May 13, 2005
• A Non-Appropriated employee who was assigned at the installation on the closure/realignment announcement date may also apply. The current BRAC closure/realignment announcement date is May 13, 2005.
• Also eligible are personnel transferred or terminated within six months prior to the announcement who were owner on May 13, 2005.
• Civilian and military personnel on an overseas tour who transferred within 3 years prior to the announcement and who are homeowners in the area; and Civilian employee homeowners on an overseas tour with reemployment rights in the area affected by the closure; and A military member homeowner ordered into on-post housing within six months prior to the announcement.
• In addition, applicants must be relocating beyond commuting distance from the area. All applicants must have been the owner-occupant of the home for which assistance is being requested on the announcement date.
• To qualify, the applicant must also meet other eligibility criteria. These are the general eligibility requirements. If you think you may be eligible, you should submit an application for a formal determination.

HAP Home Price Limits, click here for PDF

Why should you go thru HAP?

Benefits

Private Sale

Eligible applicants may be compensated for the difference between 95% of the appraised fair market value of the property prior to the announcement date, and the appraised value of the property at the time of sale, or the sales price, whichever is greater. Closing costs are reimbursed for private sales.

Government Purchase

The Government might purchase your property at 75% of your purchase price, or mortgage payoff. If this occurs, the government will sell the home to the buyer you and your realtor located and pay the realtor fees. NOTE: It is a DOD policy to insure that HAP funding remain available to assist the maximum number of applicants as opposed to using the funds for administratve costs associated with maintenance and resale of a large housing inventory.

Foreclosure Assistance

If foreclosure proceedings have commenced, an applicant may elect to receive foreclosure benefits or private sale benefits. Foreclosure benefits may be paid directly to the applicant to reimburse for foreclosure costs paid by the applicant, or paid to third parties on the applicant’s behalf. NOTE: Eligible HAP applicants who work at overseas installations announced for closure or realignment may receive only private sale benefits. Government purchase benefits are not available at overseas installations.

How HAP assists you HAP provides assistance in four ways.

• For eligible applicants, the Government may:
• Reimburse you for part of your loss from selling your home.
• Assist you, if you don’t have funds from the sale of your home to pay-off your mortgage.
• Purchase your home by paying off the mortgage.
• Help, if you default on your mortgage.

More information on HAP Program: http://hap.usace.army.mil/homepage.asp