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Military Families-Options if you are Upside Down on Your Mortgage

In a real estate market where prices have declined military families with PCS orders face a difficult decision.  Do you hold on to your home and rent hoping for prices to rebound in another 3-5 years or attempt a short sale and hope that your lender will consider PCS orders a "hardship?"

There are two other options that may be available for you to consider as weill. Military families stationed at Fort Belvoir, the Pentagon, Quantico and other Military District of Washington installations who purchased a home prior to July 1, 2006 may find that Homeowner Assistance Program (HAP) may offer some relief if you have upcoming PCS orders to move.

The HAP program is aimed towards helping:

Active Duty Military Personnel with PCS orders who are upside down on their mortgage
Wounded soldiers who must relocate due to medical conditions (wounded after 9/1/2001)
Surviving Spouses (death of military member after 9/1/2001)

If you live in Northern Virginia and you are anticipating PCS orders in 2010 and you qualify for HAP, now is the time to start gathering your documents and call the HAP Field Office for our area (located in Savannah) at 800-861-8144 for additional information.

Download information on how to apply for the HAP program.

If you have a VA Loan you may be eligible for a VA Compromise Sale. In our region of Northern Virginia the VA Regional Office which will provide you with the latest updates is the Roanoke office. The VA Compromise sale does have several factors that are important to remember:

• The property must be sold for fair market value.
• The closing costs must be reasonable and customary
• The compromise sale must be less costly for the Government than foreclosure
• There must be a financial hardship on the part of the seller
• On loans that originated on or before December 31, 1989, the seller must be willing to sign a promissory note
• There must be no second liens or other liens (unless the amount is insignificant).
• The seller must first obtain a sales contract in order to be considered for the program.

To protect the seller's interest, the seller should make the sales contract contingent and/or subject to the approval of a VA compromise sale.

VA Compromise Sale Information Packet

There is an extensive list of VA approved list of Loss Mitigation Servicers available on the VA site. A VA Compromise sale does require that the VA approve the HUD-1 be reviewed and approved by the VA prior to settlement so making sure the buyers documents are in order at least 48 hours in advance is a must.

If you are stationed at Fort Belvoir, the Pentagon, Quantico or any of the Military District of Washington installations give Cindy Jones a call at 703-346-2213. Let's see if a VA Compromise Sale or the Department of Defense HAP program might help you with your future home sale.

                                   Real People*Real Lives*Real Estate

If you are interested in learning more about the Northern Virginia Real Estate market including Alexandria, Arlington, Fairfax and Prince William Counties give Cindy Jones and Integrity Real Estate Group a call at 703-346-2213.

Military Relocation Specialist serving military families relocating to and from the Pentagon, Fort Belvoir, Quantico MCB and all of the Military District of Washington installations. 

Military Relocation Professional


Check out www.varealestatetalk.com and www.cjrealtygroup.com for more information.

Integrity Real Estate Group
 
Real People*Real Life*Real Estate

Licensed in the Commonwealth of Virginia



 

 

Comment balloon 24 commentsCindy Jones • December 26 2009 05:40PM

Comments

Hi Cindy...Time after time your posts reflect your knowledge and ability to assist military families.  Without a doubt knowing programs that will be helpful is going the extra mile that is needed to help so many that must pick up and move, selling their homes during less than desirable times.

This is certainly a specialty that many of us do not know to the extent you do.

Kate

Posted by Kate Elim, Realtor 540-226-1964, Selling Homes & Land a (Dockside Realty) almost 9 years ago

Cindy, what an informative and concise summary of programs to assist enlisted families! Thank you for the education. 

Posted by Andrew J. Lenza (Coldwell Banker Residential Brokerage) almost 9 years ago

Kate-I'm fortunate right now to have 5 familes under contract who are utillizing the HAP program.  If the check arrived then one will close this week before the end of the year.

Posted by Cindy Jones, Pentagon, Fort Belvoir & Quantico Real Estate News (Integrity Real Estate Group) almost 9 years ago

Andrew-thank you for stopping by.  I try to keep up with the programs that will assist military families in our current downturned market.

Posted by Cindy Jones, Pentagon, Fort Belvoir & Quantico Real Estate News (Integrity Real Estate Group) almost 9 years ago

Cindy,

Our military families make so many sacrifices...I have to say I hadn't thought of the situation until reading your most well informed blog.  I am glad you keep on top of these programs to help!

Posted by Lori Cofer, REALTOR, Moscow Idaho Real Estate (Beasley Realty) almost 9 years ago

Cindy:  Does this mean that pending sales under HAP are about to go through?  There's one on my street that's been under contract since July 10th.  Buyers moved in pre-settlement because getting the HAP guidelines were taking so long.

Posted by Chris Ann Cleland, Associate Broker, Bristow, VA (Long and Foster REALTORS®, Gainesville, VA) almost 9 years ago

Cindy, I was completely unaware of these programs, this is really great information. I have book marked for further reading. Thanks

Posted by Gerry Michaels, GettysburgGerry Social Meida (Glasswork Media Arts) almost 9 years ago

Lori-they do and at least in our current market conditions there are options that they can consider to help them sell without undertaking a short sale.

Posted by Cindy Jones, Pentagon, Fort Belvoir & Quantico Real Estate News (Integrity Real Estate Group) almost 9 years ago

Chris Ann-I have 5 and one is scheduled for closing this week.  Just waiting to see if the check will make it but it has been cut!  Three more are scheduled in January and final letters with benefits and amounts have been processed.  Fingers crossed.

Posted by Cindy Jones, Pentagon, Fort Belvoir & Quantico Real Estate News (Integrity Real Estate Group) almost 9 years ago

Gerry-If you have any military families who may qualify point them to the official websites and they may be among the fortunate ones who qualify for the programs.

Posted by Cindy Jones, Pentagon, Fort Belvoir & Quantico Real Estate News (Integrity Real Estate Group) almost 9 years ago

Cindy this is really interesting information. We really owe it to our military personal to help them get through these times.

Posted by Joan Zappa, Professional treatment of our clients, brings awes (Eagles Wings Realty) almost 9 years ago

I am working with a potential HAP seller right now!  This is great 411 & worthy of a reblog!

Posted by Renée Donohue~Home Photography, Western Michigan Real Estate Photographer (Savvy Home Pix) almost 9 years ago

Nick-absolutely and fortunately these options exists to help out military families underwater today.

Posted by Cindy Jones, Pentagon, Fort Belvoir & Quantico Real Estate News (Integrity Real Estate Group) almost 9 years ago

Renee-thanks I'm in a military heavy area and we are seeing a lot of HAP sales.

Posted by Cindy Jones, Pentagon, Fort Belvoir & Quantico Real Estate News (Integrity Real Estate Group) almost 9 years ago

Hey, Cindy.  I just went to setlement on a HAP sale for a couple that had been at Walter Reed Army Medical Center and got transferred to Ft. Riley, KS.  They were horribly upside down with their mortgage. Luckily, HAP came through for them.

However, it is not for the faint of heart and the active duty military home owner really needs to stay on top of things.  This is a situation where the Realtor and the home seller really need to be able to work in sync. If everything goes well, the seller is able to sell their home without the stigma of a short sale or foreclosure, the buyer gets a house at a good value and the Realtor gets paid.

It doesn't get much better than that!

Posted by Ken Montville, The MD Suburbs of DC (RE/MAX United Real Estate) almost 9 years ago

Ken-congratulations.  You are right that it does require that everyone stay in sync.  So far I think I have all of mine lined up and getting close to settlement. 

Posted by Cindy Jones, Pentagon, Fort Belvoir & Quantico Real Estate News (Integrity Real Estate Group) almost 9 years ago

Thank you for making us aware of the help that is out there for military families.  Post has been bookmarked.

Posted by Irene Tron almost 9 years ago

Cindy - Just wanted to thank you for being on the panel at Rain Camp yesterday.  I really enjoyed meeting you in person.

Posted by Gail Robinson, CRS, GRI, e-PRO Fairfield County, CT (William Raveis Real Estate) almost 9 years ago

Cindy, What a great post.   I'm glad you provided our Military families with this great information!

Posted by Elizabeth Cooper-Golden, Huntsville AL MLS (Huntsville Alabama Real Estate, (@ Homes Realty Group)) almost 9 years ago

Irene-it is one of the smartest moves the government made in all of the assistance plans last fall.

Gail-gosh I missed these last few comments for awhile.  Sorry Rain Camp was a blast and I'm still sorting through information.

 

Elizabeth-since I first posted this military families are getting their homes sold under the program without doing a short sale.

Posted by Cindy Jones, Pentagon, Fort Belvoir & Quantico Real Estate News (Integrity Real Estate Group) almost 9 years ago

Cindy, I just re-blogged this, following up on our earlier communication.

Posted by Margaret Woda, Maryland Real Estate & Military Relocation (Long & Foster Real Estate, Inc.) over 8 years ago

I had a seller that was in the military, and they said his security clearance would be cancelled if he did a short sale...

Posted by Pat Tasker, Your Milwaukee Metro Area Agent (WI) (Shorewest Realtors) almost 8 years ago

Margaret-thanks. 

Posted by Cindy Jones, Pentagon, Fort Belvoir & Quantico Real Estate News (Integrity Real Estate Group) almost 8 years ago

Pat-i've had that conversation with a couple of clients with security clearances and it hasn't happened.  For a military familiy who doesn't qualify for HAP and HAS PCS orders it is an explanable situation versus someone who does a strategic default.

Posted by Cindy Jones, Pentagon, Fort Belvoir & Quantico Real Estate News (Integrity Real Estate Group) almost 8 years ago

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