Anyone familiar with Department of Defense's Homeowners Assistance Program for soldiers deploying?

I have a few soldiers being relocated for the military. Has anyone experienced this program? Or are there other government programs to assist in the handling of upside homes? How does the process work? Do we submit a normal short sale package to the bank and let them know we're looking for this program approval, like HAFA? I read somewhere the they won't pay for Realtor's commissions? Any information or experience is greatly appreciated! Thank you!

 

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Permalink Reply by Bryant Tutas on April 19, 2011 at 11:47pm

HAP is an awesome program. It is nothing like a regular short sale because it's not a short sale at all. The government pays off the loan in full on behalf of the service member. I've only had one of these but it was a piece of cake. Not only will they pay a commission but they will pay full commission to one broker if they are on both sides of the transaction. And the buyer can be a relative!!

 

The serviceman needs to apply for the program. We have a HAP group set up here

http://shortsalesuperstars.com/group/hapmilitarypcs

 

I hope this helps.

Permalink Reply by Tracy on April 20, 2011 at 12:46am

HAP is over.  You needed to have orders BEFORE September 2010, and the house needed to be under contract before June 2006  http://hap.usace.army.mil/EP_PCS.html

Are these guidelines incorrect?  There seems to be this perception that there are government programs to help us military.  If anyone knows of any, please share.

Permalink Reply by Janice MacMillan on April 20, 2011 at 1:00am
Be sure to prepare your buyers. I just closed on one the end of March, the offer was submitted back in December. There were no less than 6 different people who represented HAP involved in this closing. It was a mess.
Permalink Reply by Bryant Tutas on April 20, 2011 at 1:00am
That's interesting Tracy. The "overview page" in my area is completely different. I know HAP is broken down into regions so it may just depend on where a property is located as to whether or not funds are still available. I think I'd have the serce member contact HAP direct to see if it is available for them.
Permalink Reply by Bryant Tutas on April 20, 2011 at 1:02am

I just found this too:

Q. Will the HAP continue into 2012?
A.
  1. For PCSing service members, PCS orders must be dated between February 1, 2006, and September 30, 2010.
  2. For WII and SS, the HAP will continue indefinitely.
  3. For BRAC 2005 impacted service members and civilian employees, HAP will continue through Sep 2012.


Tracy said:

HAP is over.  You needed to have orders BEFORE September 2010, and the house needed to be under contract before June 2006  http://hap.usace.army.mil/EP_PCS.html

Are these guidelines incorrect?  There seems to be this perception that there are government programs to help us military.  If anyone knows of any, please share.

Permalink Reply by Tracy on April 20, 2011 at 1:25am
I guess I should have been more specific, Expanded HAP for PCS orders, which seems to be the one Jennifer is talking about, has been over for the past 6 months.

Bryant Tutas said:

I just found this too:

Q. Will the HAP continue into 2012?
A.
  1. For PCSing service members, PCS orders must be dated between February 1, 2006, and September 30, 2010.
  2. For WII and SS, the HAP will continue indefinitely.
  3. For BRAC 2005 impacted service members and civilian employees, HAP will continue through Sep 2012.


Tracy said:

HAP is over.  You needed to have orders BEFORE September 2010, and the house needed to be under contract before June 2006  http://hap.usace.army.mil/EP_PCS.html

Are these guidelines incorrect?  There seems to be this perception that there are government programs to help us military.  If anyone knows of any, please share.

Permalink Reply by Susan Krancer on April 20, 2011 at 1:41am
So, what about the folks who bought in 2007 and are now being reassigned?  Why should 2006 arbitrarily be the cutoff for helping the military folks?
Permalink Reply by Josette Skilling on April 20, 2011 at 1:51am

I am working on two HAP sales currently in MD.  The folks in Savannah I've talked to have been terrific and so far the process will be a bit more lengthy but should be no problem.  One of the sales is regular HAP and the other is under the expanded HAP program.  Cindy Jones in Virginia has closed 2 dozen of these transactions and has a very good understanding of their process. 

These are not short sales and require no package to the bank.  The government will make the service member "whole" in the process and pay off the loans.  There is no  short sale and no reason to frighten a buyer beyond extra time in the process.

 

I believe there is a bill in Congress to expand this program beyond the arbitrary deadlines in place now.  I just gave it a quick read when I first saw it and agreed with the premise but can't really quote the new dates being discussed. 

 

Permalink Reply by Joe McDermott on April 20, 2011 at 2:35am

I'm not sure about the variations within the program and eligibility, but we closed one about 45 days ago. The real issue for us was the processing time. My understanding is that processing is handled at the state level and not the federal. Here in California the HAP web-site stated that we should expect a wait of up to 60 days for approval. Turned out it was 9 months because their staff was simply slammed with too many files.

It got done but not without a lot of pain on the sellers part because they had to remain current on the property we were selling and had to pay their rent back in NC for a while. 

You might want to check with your state HAP office to see what they estimate the processing time to be.

Permalink Reply by Robert Boerner on April 20, 2011 at 2:48am
I've got a buyer who made an offer on a property where the seller is utilizing HAP in California.  So far, it seems like a slow process.  Offer submitted in December.  It is now April 20 and we are just hearing the initial approval has been granted.  There is a twist though, at least in our case.  There needs to be two simultaneous escrows.  One for the transaction from owner/seller to the US Govt.  Another from US Govt. to my buyer.  Since my buyer is going to be financing the property (with a VA loan), we need an new purchase contract executed by the US Govt. and my buyer before she can submit a loan application package.  HAP and the listing agent have told me we are closing on May 16th.  I haven't been able to get the new purchase contract (which is a government version and not a Realtor form).  So, they tell me we are closing but I am not sure how we can do that without a loan approval.  I think its gonna get interesting...
Permalink Reply by Raymond Kennedy on April 20, 2011 at 7:43am

I am unsure of any specific programs but I did a Short Sale with Citi handling it through the regular process and nothing was different. They just showed their military orders to relocate as part of the hardship and it closed in a reasonable time with full waiver or liability and all standard fees were paid by the lender such as commission, attorney fees, title etc. At the time we researched various programs but nothing seemed to be very helpful. I still believe the regular Short Sales seems to be the best way in many cases. Once you start giving over control with third parties depending on the programs it tends to complicate it. Just my experience but I have had various types of Short Sales and the standard deals seem to work out the best overall. Can't ignore the programs especially if they have benefits to the seller..


Good to know about HAP moving forward in case I come across the same situation. That is if it is available in that situation. Military clients have been rare in my dealings so far. 

 

Good info though.

Permalink Reply by Cameron Piper - Keller Williams on April 20, 2011 at 6:07pm

I currently have two HAP short sales underway.  Yes short sales.

 

In the first the seller refinanced a couple of times and rolled in their closing costs.  The program only pays the difference between the current sale price and the purchase price.  The seller has additional indebtedness because of the refinancing and closing costs but no money to bring to the closing.  Enter the short sale.

 

The second is for a seller who is considerably behind on the mortgage.  The HAP guidlines specify that they will not pay late fees or accrued interest on a mortgage.  The trick with this one will be getting Wells to understand that they need to forgive late fees and interest owed (in essence shorting the mortgage) to avoid a traditional short sale where they will lose hundreds of thousands more.

 

Jennifer if you find any of your sellers in a similar situation you may need to work a short sale in conjunction with HAP contributions.  Be aware however that they will tell you that the program does not work with short sales and/or sellers who are behind.

 

Cameron Piper

Coldwell Banker Burnet

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