Michael O. Humphrey requests the following information be passed on his behalf to our military veterans who may want to use or have questions on the Housing Assistance Program (HAP). 

"If you lost money because you had to transfer on military orders and needed to sell your house at a loss, or worse, were unable to sell at all, there may be some relief available to you from a newly expanded Homeowner's Assistance Program (HAP).

1. The following groups may be eligible for relief:

(a) Wounded, ill, and injured (30% disability or greater) military members and civilian DoD employees who relocate from a residence for medical treatment, rehabilitation, or retirement due to a injury incurred while deployed in the line of duty after 11 September 2001;

(b) Surviving spouses of military members and DoD employees killed while deployed in the line of duty after 11 September 2001, who choose to relocate;

(c) Military and civilian personnel affected by the BRAC process in 2005; and

(d) Military members who executed PCS orders between 1 February 2006 and 30 September 2012, AND who purchased their primary residence before 1 July 2006.

2. If you are in one of the groups listed above, and meet some additional eligibility requirements, your favorite Uncle can assist in the following ways:

(a) Already Sold Your Home. If you sold your primary residence at a loss, AND meet all the other qualifications, the Government will reimburse you for up to 90% of the difference between your purchase price and subsequent sale price, as well as any closing costs. The definition of primary residence for HAP purposes is fairly straightforward in the regulations -- it is the home from which you commute (or commuted) to your primary place of duty.

(b) Unable to Sell Your Home. If you were unable to sell your principal residence after reasonable efforts, AND meet all the other qualifications, the Government will purchase your home for the GREATER of: (1) 75% of the member's purchase price, or (2) the value of the outstanding mortgage balance. "Reasonable effort to sell" is defined very carefully in the regulations and at a minimum requires 120 days of active time on the market.

(c) Foreclosure or Short Sale. If you are being foreclosed upon regarding your principal residence, AND meet all of the other qualifications the Government will pay all legally enforceable liabilities for the member that are directly associated with the foreclosed mortgage.

(d) Exception. For wounded servicemembers/civilians and surviving spouses, a different set of rules apply. Those in this category are eligible for compensation up to 95% of the purchase price of their home, whether they were able to sell it for a loss or not at all. In addition, for these groups, there are no limitations on the date in which the home was purchased.

3. More details:

(a) Under current law, the "expanded" HAP benefits will be taxable as income.

(b) HAP benefits are not available to those who voluntarily separated from the military (including retirement), those who entered the military AFTER their home purchase, or those with something less than an Honorable Discharge.

(c) Mortgages that have been refinanced and had cash taken out for a purpose other than something related to the house (e.g., used to pay bills, for a vacation, for a car, etc.) will not be fully covered by HAP.

(d) There are limits on the mortgages that qualify tied to Fannie Mae/Freddie Mac qualifying loans, and the amount depends on where the home was located.

(e) Finally, these benefits are only available until 30 September 2012 under current law. And, much like the recent "Cash for Clunkers" program, there is only a limited pool of money. Bottom line: don't wait to apply! You snooze, you lose! The early bird gets the worm! The squeaky wheel gets the grease! You get the idea.

4. More details on eligibility and an application for these benefits can be found at the web site http://edocket.access.gpo.gov/2009/pdf/E9-23418.pdf. If you need further assistance, contact your local Naval Legal Service Office and make an appointment to speak with an attorney. Bangor, (360) 396-6003; Bremerton, (360) 476-4275; Everett, (425) 304-4551; Whidbey Island, (360) 257-2126."

This information is part of the Naval Legal Service Office Northwest Legal Assistance Department's Fleet Outreach Program for all ships and shore activities in the Puget Sound. The Naval Legal Service Office Northwest has locations at Naval Base Kitsap Bangor, Bremerton, Whidbey Island and Naval Station Everett and provides on-site services such as predeployment briefs, powers of attorney and wills by request. Mr. Michael Humphrey is the Outreach Coordinator and can be reached at (360) 396-6003 in the NBK-Bangor location.

Please Mr. Humphrey a call if you have questions on HAP and are stationed in the Puget Sound Region.

Thanks,

Marty