Don't Let Changes To The DoD Homeowners Assistance Program Take You By Surprise

American FlagThis information was originally posted on my Word Press Blog VaRealEstatetalk.com however it's important to get DoD Homeowners Assistance Program changes in front of as many eyeballs as possible.

Over the past few years the DoD Homeowners Assistance Program has helped thousands of service members sell their underwater homes.  The program has morphed and changed a number of times since it was first implemented.  The latest change is a big one and service members who own homes in Northern Virginia need to be aware of the impact.

Previously the DoD HAP program offered 3 options for home sellers.  The most widely used is the Government Acquisition option where the government flips the home from the seller to the new buyer paying off the old mortgage at settlement.  That’s a simplified version but covers the basic idea.

The second option is known as a Private Sale.  In this case the service member sells the home directly to a buyer and then is reimbursed by HAP for the benefits due after the sale is completed.  These sales have worked for service members who made a significant down payment and the current market value was above the amount owed on the mortgage.

The third option which has been eliminated, was known as either the Private Sale Augmentation (PSA) or Government Assisted Private Sale (GAPS).  With this option HAP would provide a check at settlement to cover the difference upfront.   After deductions for closing costs, commission and mortgage payoff, the service member would get a check back from the settlement company based on the HAP benefits formula usually within a few days after the transaction had been completed.

What does this mean if you are considering a DoD HAP sale?

It means you may have a difficult decision to make.  Even though you may have made a down payment or qualified improvements to your home you are going to front the money to get to closing under the Private Sale option.  If you do not have those funds available then you will need to  sell your home under the Government Acquisition option or keep your home as a rental property until the housing market recovers.

If you qualify for the Department of Defense Homeowners Assistance Program and left behind a home in the Northern Virginia are give me a call at 703-346-2213 or drop me an email at cindy@cjrealtygroup.com.  Let’s talk about how the change in the program may impact the sale of your home in Northern Virginia.

You should also contact the HAP Savannah Regional Office to discuss your options directly with a HAP Realty Specialist.

                                   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 10 commentsCindy Jones • March 05 2012 04:40PM


Cindy, really good information and important to share. Thanks.


Posted by Cal Yoder, Homes For Sale in Lancaster PA - 717.413.0744 (Keller Williams Elite) about 7 years ago

Great information Cindy. It's always a pleasure to help someone in the military and these programs need to be constantly updated. When Uncle Sam says go, they have no choice.

Posted by Ellie McIntire, Luxury service in Howard County & Catonsville (Ellicott City Clarksville Howard County Maryland Real Estate) about 7 years ago


Difficult choices for the seller make choosing a knowledgeable Realtor all that much more important.


Posted by Richard Iarossi, Crofton MD Real Estate, Annapolis MD Real Estate (Coldwell Banker Residential Brokerage) about 7 years ago

Cal-this change is a big one as it means some service members who might have recovered some of the money they put into their home may not.

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

Ellie-that's true and if the qualify for HAP it's a help.  Unfortunately this change is going to impact a number of transactions in progress.

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

Rich-and of course HAP doesn't publish these changes so it's up to those of us working in the trenches to dig it out.

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

Cindy, I've never run into this here, but if I do, I'm calling you!

Posted by Ellen Caruso (Daniel Gale Sotheby's International Realty) about 7 years ago

Ellen-you aren't in a military intensive area like we are in Northern Virginia.

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

Appreciate the informative content on DOD homeowners assistance program

Posted by Will Nesbitt, Nesbitt Realty is a family-run brokerage. (Nesbitt Realty at Condo Alexandria) almost 7 years ago

Thanks Will.  Time is running out for anyone to apply and it is taking longer to close sales than it was last summer.

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

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