HAP Question of the Week: #4

Welcome Brunswick Maine Homeowners!  It's time once again for the HAP question of the week!  And just in time, for I just heard that the government is closing on it's first home in Brunswick next week.  So continue to send me your questions...I love answering them!

Question # 4:  What is the Private Sale Augmentation Benefit? 

Answer:  This benefit was designed to help sellers who have to sell their house for less than their mortgage payoff.  This applies to people who are trying to sell their home on the open market but because of current market conditions they can't get enough for their home to pay off the mortgage. THis is where the Private Sale Augmentation Benefit comes in to play. Most of the time,  the sale proceeds plus the HAP benefit are enough to cover the loan payoff and the closing costs. So in a nutshell, HAP may pay the difference at closing between the sale price of the home and the loan balance.  Remember that you will have to pay taxes on the difference, but that's nothing compared to being able to pay off your mortgage!

While HAP is a valuable safety net, you will always do better if you sell your home on the open market verses selling it to the government. If you would like to find out how much your home would sell for, call The Hershey Home Team!  And please continue to send us any questions you may have concerning the HAP process!