Replies to This Discussion

Permalink Reply by Tracy on March 22, 2011 at 4:18pm

We only have 1 mortgage on the house and no pmi

Permalink Reply by Tni LeBlanc (805) 878-9879 on March 22, 2011 at 4:45pm

Hi Tracy,

 

Have you checked to see if you are eligble for the HAP program?  http://hap.usace.army.mil/

That is specifically geared to military families.

 

Most lenders will still consider a short sale if the hardship is imminent.  It may be easier once you have the orders in hand, but I would not let that deter me given your situation  - show them that you will not be able to make payments in the near future.  I do think HAP is your best option but not sure if you would qualify --  you should fully explore that first before a short sale though.

 

Good luck!

 

Tni 

Permalink Reply by Tracy on March 22, 2011 at 9:39pm

Hap is over.  You needed orders by september of 2010.  Also the house had to have been purchased by June of 2006, we purchased in November 2006.

Permalink Reply by Tni LeBlanc (805) 878-9879 on March 22, 2011 at 10:42pm

I'm sorry to hear you don't qualify for HAP.  And because your husband has a security clearance this is indeed a big issue.  Even though short sales are relatively common, I have heard of their being issues with security clearances.  You really need to seek out advice from the military, an attorney and a tax advisor.

 

There are at least two types of short sales, traditional and HAFA.  You can apply for either one while current on your mortgage if you have a foreseeable default.  Navy Federal Credit Union is on the list participants on the Making Home Affordable website.  Here is a link to that.  You can contact Navy Federal directly for their HAFA policy.  

 

Good luck!

 



Permalink Reply by Tracy on March 23, 2011 at 1:03am

We are looking into renting the house out but I am scared to do so.  It is an older house and while we have already put a lot of work into it things always pop up.  Add to that the cost if the house is vacant. 

I think you are right about seeking the advice of an attorney and the military.  I think we get free legal council through the military.

Permalink Reply by Tni LeBlanc (805) 878-9879 on March 23, 2011 at 5:01am

Tracy,

 

If after all the proper advice you do decide to rent it out, I would recommend using a well-respected local property manager to help you with the property.  Over the long haul I think property management is the way to go when you have a home in another city that may need repairs here and there - they can coordinate repairs and deal with the tenants.  They can also deal with the vacancies for you.  The money you save by not using them can easily be eaten up with having the home vacant for one month.  Not to mention if you have to make a trip back to deal with any issues.  I use property management myself for a home I own two hours away.  The home is newer.  But last month the sprinklers heads stopped working and the month before it was a doorbell.  I love that someone else is taking care of it.  So, don't be penny wise and pound foolish if you decide to rent it out.  Pick the best possible company and ask for references from landlords they help now with similar properties.

 

Tni

 

Permalink Reply by Tracy on March 23, 2011 at 5:31am

Thank you for the advice.  We have a meeting with a property management agency tomorrow.  I never thought of asking for references but it is a great idea, especially from similar properties.

Permalink Reply by Thomas Zdanowicz on March 23, 2011 at 8:31am

Tracy,

 

You should look into the The Servicemember's Civil Relief Act (SCRA).  It is specfically geared towards servicemembers.   Here is one website that can assist you --->http://www.military.com/benefits/legal-matters/scra/overview

Permalink Reply by Alan Remigio on March 23, 2011 at 12:08pm

Tracy,

 

Believe it or not, as active duty personnel, you have opportunities civilians do not have. Being a part of the Navy FCU or any other banking institution catering exclusively to military dependents, vets and retirees offers alternative options the general public may not have. I believe MWR has a financial support section. I would suggest you talk to your MWR representative regarding your alternatives. They may coordinate an appointment with the Navy FCU to explore solutions or give you direction to other options. I would suggest you go this route before looking outside at alternatives. Both may discuss the alternative government programs, such as HAFA or an option unique to the military. Good to do this now and understand your situation as opposed to waiting to the day you PCS. Good Luck!

Permalink Reply by Tni LeBlanc (805) 878-9879 on March 23, 2011 at 12:14pm

I agree with Alan that your best options are going to be within the military programs and you should fully explore them before doing anything outside of that. 

Permalink Reply by Tracy on March 24, 2011 at 12:02am

The scra is for debt entered into BEFORE military service, we bought this house after he was in the military.  I've spent a lot of time researching and I just don't see the alternatives.  There are even websites devoted to bringing to light the foreclosure issue for the military.  Seems we have a much higher rate of foreclosure than general public.  Also seems like civilian government employees get benefits we don't.  From reading blogs Navy FCU is and has no obligation to be better than any other bank.  My husband will be talking to his command and navy legal so we shall see.  Has anyone out there specifically dealt with a short sale involving a military member?

Permalink Reply by Tracy Hatchell on March 29, 2011 at 8:33am

One thing that is highly important to know for both active military or veterans is that although you may qualify for HAFA you better not have a VA loan when you are doing it. Although the bank may allow the short sale under HAFA or any other program you are still on the hook with the VA since they guaranteed your loan. You will lose your VA eligibility unless you pay the short that they lost when the short sale took place. Go to www.va.gov and look up info about short sales. Don't ever forget a short sale or foreclosure can hurt an active duty person's security clearance.

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