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Short Sales And the Department of Defense Homeowners Assistance Program (HAP)

Short Sales and DoD HAP Among the questions I get from military families on the  DoD Homeowners Assistance Program (HAP) is why won't DoD pay me directly for the money I lost on a short sale ?

First to clarify.   Why would an active duty military member undertaken a short sale instead of using the DoD HAP program in the first place?   The final approval for the DoD HAP program did not happen until Fall 2009.  Prior to then active duty military families, wounded warriors, surviving spouses and mandatory retirees had to complete a short sale or rent out their home in order to make a required PCS move.

The HAP program does allow for a qualified service member to apply for the program retroactively.  In the case of a short sale there are two possible scenarios.  If the lender held the qualified service member liable for a deficiency between the mortgage payoffs, often in the form of a promissory note, then a payment can be made directly to the lender to pay off that deficiency judgment. 

If there was no deficiency and no on going financial liability then there will be no benefit paid to the lender or the service member.  A service member cannot profit from a prior short sale.

Work is underway to make clarifications and updates to the rules for the DoD HAP program that were original published in the Federal Registry in September 2009.  Those new updates should be published in January 2011. 

In the meantime if you live in the Northern Virginia area and meet the current eligibility rules for the program give me a call at 703-346-2213.  I've settled 20 HAP transactions this year, including both Government Acquisition sales and Private Sales and understand the process thouroughly.  Let me help you take advantage of the DoD HAP benefits to sell your home.

 

 

 

                                   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 15 commentsCindy Jones • November 17 2010 05:16PM

Comments

Cindy, Great information for you market area!

Posted by Liz and Bill Spear, RE/MAX Elite Warren County OH (Cincinnati/Dayton) (RE/MAX Elite 513.520.5305 www.LizTour.com) over 8 years ago

Cindy. I'm closing on my first HAP deal next week. The military member was very good at doing his side of the deal and the transaction has been very smooth. What really surprised me is that the buyers of the property are the parents. HAP has no issue with this at all.

US Gov is buying the house and paying off about 150,000 in excess financing. Great deal for the military. It keeps them from having to do the short sale.

Posted by Bryant Tutas, Selling Florida one home at a time (Tutas Towne Realty, Inc and Garden Views Realty, LLC) over 8 years ago

Bliz-DoD HAP is across the country and I get inquiries from just about everywhere, including calls from soliders stationed in the Middle East, about the program and qualifications.

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

Bryant-congratulations.  HAP does not have some of the crazy "arms length transaction" rules as lenders due with short sales. 

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

Great information Cindy.  I'm glad to see that you're having such great success helping our military families with the DoD HAP program.

Posted by Tamara Inzunza, Close-In Alexandria and Arlington Living (RE/MAX Executives) over 8 years ago

Another informative post on the ins and outs of the HAP program.  I know you are keeping your ears to the ground on all of the changes and updates to the program.

Posted by Pat Fenn (Marketing Specialist for CJ Realty Group/Cindy Jones Broker ) over 8 years ago

Tamara-thanks for you comment.  I still have one more listing to close this year with HAP and new regs are being reviewed now.  Hopefully I'll have more information to share with agents and eligible service members soon.

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

Pat-I'm in the midst now of reading clarifications to the old rules which should be published in Janaury.

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

You are the go to source in Northern Virginia for HAP info.  Glad to see you are keeping on top of it all.  Wouldn't expect anything less from you.

Posted by Chris Ann Cleland, Associate Broker, Bristow, VA (Long and Foster REALTORS®, Gainesville, VA) over 8 years ago

Chirs Ann-Thanks.  A whole new slew of regulations to read before they are published in January. 

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

Cindy - another great post! It is so important to get this information out to our clients!

Posted by Barbara-Jo Roberts Berberi, MA, PSA, TRC - Greater Clearwater Florida Residential Real Estate Professional, Palm Harbor, Dunedin, Clearwater, Safety Harbor (Charles Rutenberg Realty) over 8 years ago

Hi Jones,

I am so happy to hear that our serviceman who are putting their lives on the line have assistance in terms of being underwater on their homes. If anyone deserves help, its them because a lot of times they are not even in the area to deal with the short sale issues because of being oversees. You are the go to person. Congrats!

Posted by Trustworthy Responsive-Personal-Banking, Younullre not just a client-your a FRIEND! (HOMEPATH, USDA, VHDA, FHA, VA, CONV & JUMBO MORTGAGES) about 8 years ago

Steve-thank you for stopping by and your comment in support of our troops.

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

Thanks for the information its hard to find the actual wahat to do process for the Military homeowner who is coming up short and wants to use HAP funds.  Margaret C.

Posted by Margaret C. Taylor, St Marys/Calvert/Charles MD Real Estate Agent (Century 21 New Millennium MD) almost 8 years ago

Margaret-Just closed another HAP sale today.

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

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