Our team has just completed helping a client sell their home under the military expanded HAP (Homeowners Assistance Program).  It is a program that is not well advertised and probably not well understood.

In the case of our clients, They purchased their home in June 2006 for $470,000.  They bought using a conventional loan and put approximately $90,000 down.  Since then, the value of their home plummeted to $300,000.   Our clients still owed $352,000 .   The service member had PCS'd to his new service station.  However, his family remained behind in Woodbridge partly because they weren't sure what to do about the house.  If they rented it out, they would be $900 in the red each month.  It would appear that the only way they could sell it was through a short sale, but they didn't want to risk any potential adverse effects on their credit.  Then they heard about the military HAP and decided to give it a try.

My clients submitted the application and were deemed eligible.  In a little short of three months, they sold their home.  The HAP paid the deficiency in the mortgage, paid closing costs including Realtor fees,  and our clients even got back a better part of their down payment.  Yes, with the military HAP, they were able to leave the settlement table with cash in their pockets. 

For the military, this is the best alternative to a short sale for those that meet the eligibility criteria. If you have further questions on the military HAP, do not hesitate to contact us.