The economic downturn of the last year has caused a great many heartaches. But, perhaps those most unfairly hit are our nation's military. They come and go not on a whim but rather by the orders of good ole Uncle Sam. That means that the average military member who was not fortunate enough to get on base housing a few years ago, and who went out and bought a home, probably is in a very difficult situation if they now have to sell because of PCS (permanent change of station) orders.
Many have had no recourse but to utilize the option of short sale or foreclosure. Short sale is an industry term which simply means that the market will not allow the person to sale their home for what they now owe the lender. The house is essentially upside down. If the lender allows for a short sale they will accept a fair market price and often forgive the home owner for the dept. This is not without consequence as this will be reported on the seller's credit report and could remain there from 2-7 years depending on the bank. For the military member who has little choice in when and where he is stationed, the short sale can be a horrible alternative.
The American Investment and Recovery Act of 2009 passed by Congress and signed by President Obama in February hopes to address this issue. This "stimulus package" has $555 million dedicated to expanding the Homeowners Assistance Program (HAP). HAP is a program administered by the US Army Corp of Engineers and was initially designed in 1966 to "provide some monetary relief to eligible service member (including Coast Guard) and federal employee (including non-appropriated fund) homeowners who suffer financial loss on the sale of their primary residences when a base closure or realignment announcement causes a decline in the residential real estate market and they are not able to sell their homes under reasonable terms or conditions."
The stimulus package will expand the HAP to "provide assistance to relocating military service members, civilian employees, and their families who face financial loss due to the ongoing housing crisis." The Corp of Engineers website has stated that "the Directorate of Real Estate is developing policy guidance for implementing new authorities provided in the recovery act."
The HAP website has stated on the website that the "American Recovery and Reinvestment Act funding policy has yet to be determined. While potential applicants are free to submit application paperwork, we will process the applications based on the implementation guidance, which we expect to receive in the next few weeks."
If you are a military member assigned to Charleston AFB, the Navy Weapons Station, or anywhere else in the Charleston SC Area and would like assistance selling or buying a home please contact me, a U.S. Air Force Veteran:
Michael J. Johnson, Realtor
843-817-5299
1. Crowfield Plantation Real Estate
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