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A DoD HAP Sale Is NOT A Short Sale

Let me repeat that.  The Department of Defense Homeowners Assistance Program sale is NOT a short sale.

The only common denominator between the two is that the homeowner is upside down on their mortgage.

An active duty servicemember who meets the qualifications for HAP does not interact with their lender in any way regarding the sale of their home.  They do not have to provide to their lender or the United States Army Corps of Engineers, who administers the program, anything that resembles a short sale package.

They do not have to prove a "financial hardship" to sell their home using HAP.  They do not have to provide W-2's, bank statements, tax returns or a hardship letter.  They do not have to get the lender to approve the sales contract and their Realtor® does not have to spend countless hours on the phone pleading with a negotiator to return their call. 

What they do have to do is provide is the signed application found on the USACE website along with copies of the required documentation.  It includes PCS orders in and out of the duty station, documentation the home was their primary residence while they lived in the area (utility company letter), a copy of the HUD-1 showing the purchase price of the home and a signed sales contract between the service-member and the buyer.  There are a few other items required but these are the basics.  The Realtor® has to provide 3 comps to show that the property is being sold within 10% of Fair Market Value.  There is no haggling over the price or commissions.  No 90 page faxes to send and resend.  No surly negotiator you hope will get back to you. 

Yes as a buyer you will have to wait while the USACE office processes the file.  The process can take a few months.  Just think of the phrase "you're in the Army now" and you'll understand.  The outcome of your contract isn't an unknown.  HAP isn't going to come back to you and raise the sales price.  As the buyer's agent you aren't going to be asked to take a hit on your commission.  All you are asked to do is be patient so the government can do their thing. 

If you read into this a little bit of a rant you are right.  After two years of working with servicemembers to sell their homes under the HAP guidelines I'm still amazed at the amont of misinformation that agents are perpetuating.

 

                                   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 14 commentsCindy Jones • February 29 2012 07:09AM

Comments

While technically it is not a short sale it is a sale which requires third party approval.  Some disclosure is needed for that.  Unfortunately our MLS does not have a field for HAP but it has fields for court approval (probate) & short sales.

Posted by Renée Donohue~Home Photography, Western Michigan Real Estate Photographer (Savvy Home Pix) over 7 years ago

Cindy, You have always provided some clear and up to date information for our service members and their families. I truly understand the phrase "You are in the Army Now". The good News that I like is that you don't have to deal with all that faxing and paper work, and waiting for a negotiator to get back with you. Yes, I love the idea that my commission won't be compromised too.

Posted by Jerry Newman, Texas REALTOR, San Antonio Military Relocation (Brown Realty, 210-789-4216,www.JeremiahNewman.com) over 7 years ago

Renee-we have a field for special addendum in our MRIS which I do have checked.  However since the lender isn't involved it isn't a short sale as it is defined by our MRIS.  As you know the servicemember doesn't have to get any approval from their lender or provide a financial hardship to HAP other than the loss of value on their home.

Posted by Cindy Jones, Pentagon, Fort Belvoir & Quantico Real Estate News (Integrity Real Estate Group) over 7 years ago

Jerry-I'm sure your years of military service also taught you "hurry up and wait." 

Posted by Cindy Jones, Pentagon, Fort Belvoir & Quantico Real Estate News (Integrity Real Estate Group) over 7 years ago

This is a message you could publish every day the six months and you still wouldn't get through to the buyer agents out there.

Posted by Chris Ann Cleland, Associate Broker, Bristow, VA (Long and Foster REALTORS®, Gainesville, VA) over 7 years ago

Chris Ann-I had a particularly distrubing conversation yesterday with an agent and my head almost exploded.

Posted by Cindy Jones, Pentagon, Fort Belvoir & Quantico Real Estate News (Integrity Real Estate Group) over 7 years ago

Good information.  And, I am glad you wrote this.  I would never have known that.  I bookmarked it in case I need for reference later.  Thanks, Cindy!

Posted by Suzanne McLaughlin, Sabinske & Associates, Realtor (Sabinske & Associates, Inc. (Albertville, St. Michael)) over 7 years ago

Cindy, thanks for the great post.  I am now licensed in Florida (in the Florida Keys) and I re-blogged this.  We have a lot of military families getting ready to transfer out of the Keys and they probably don't know they may have options on their upside down mortgage!  Thanks again - hope you are doing great!

Posted by Pamela Stangler, Florida Keys (Lisa Ferringo & Assoc., Coldwell Banker Schmitt) over 7 years ago

Suzanne-glad the information was useful for you.

Posted by Cindy Jones, Pentagon, Fort Belvoir & Quantico Real Estate News (Integrity Real Estate Group) over 7 years ago

Pamela-hope you are enjoying your new location, though this winter it wasn't much colder here than Florida! 

Posted by Cindy Jones, Pentagon, Fort Belvoir & Quantico Real Estate News (Integrity Real Estate Group) over 7 years ago

Cindy, I've learned something from this post.  Good information to know.

Posted by Kay Van Kampen, Realtor®, Springfield Mo Real Estate (RE/MAX Broker, RE/MAX) over 7 years ago

Kay thank you for stopping by.  Hope you are out of harms way with the tornado's that came through your area.

Posted by Cindy Jones, Pentagon, Fort Belvoir & Quantico Real Estate News (Integrity Real Estate Group) over 7 years ago

Cindy.  Your doing a great job of putting information out there...I reblogged it because I feel we can't do enough to get the word out with the CORRECT information...I'm starting to get the hang of what needs to be put into blogs:)

Posted by Cheryl Thomson REALTOR Army Ret, Associate Broker in Northern Virginia ( United Real Estate (703.216.5635) cheryltee47@gmail.com) over 7 years ago

Cheryl-thank you.  The more information we get out locally and nationally about the HAP program the better.

Posted by Cindy Jones, Pentagon, Fort Belvoir & Quantico Real Estate News (Integrity Real Estate Group) over 7 years ago

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