Military Families-Options if you are Upside Down on Your Mortgage

By
Real Estate Agent with Integrity Real Estate Group

In a real estate market where prices have declined military families with PCS orders face a difficult decision.  Do you hold on to your home and rent hoping for prices to rebound in another 3-5 years or attempt a short sale and hope that your lender will consider PCS orders a "hardship?"

There are two other options that may be available for you to consider as weill. Military families stationed at Fort Belvoir, the Pentagon, Quantico and other Military District of Washington installations who purchased a home prior to July 1, 2006 may find that Homeowner Assistance Program (HAP) may offer some relief if you have upcoming PCS orders to move.

The HAP program is aimed towards helping:

Active Duty Military Personnel with PCS orders who are upside down on their mortgage
Wounded soldiers who must relocate due to medical conditions (wounded after 9/1/2001)
Surviving Spouses (death of military member after 9/1/2001)

If you live in Northern Virginia and you are anticipating PCS orders in 2010 and you qualify for HAP, now is the time to start gathering your documents and call the HAP Field Office for our area (located in Savannah) at 800-861-8144 for additional information.

Download information on how to apply for the HAP program.

If you have a VA Loan you may be eligible for a VA Compromise Sale. In our region of Northern Virginia the VA Regional Office which will provide you with the latest updates is the Roanoke office. The VA Compromise sale does have several factors that are important to remember:

• The property must be sold for fair market value.
• The closing costs must be reasonable and customary
• The compromise sale must be less costly for the Government than foreclosure
• There must be a financial hardship on the part of the seller
• On loans that originated on or before December 31, 1989, the seller must be willing to sign a promissory note
• There must be no second liens or other liens (unless the amount is insignificant).
• The seller must first obtain a sales contract in order to be considered for the program.

To protect the seller's interest, the seller should make the sales contract contingent and/or subject to the approval of a VA compromise sale.

VA Compromise Sale Information Packet

There is an extensive list of VA approved list of Loss Mitigation Servicers available on the VA site. A VA Compromise sale does require that the VA approve the HUD-1 be reviewed and approved by the VA prior to settlement so making sure the buyers documents are in order at least 48 hours in advance is a must.

If you are stationed at Fort Belvoir, the Pentagon, Quantico or any of the Military District of Washington installations give Cindy Jones a call at 703-346-2213. Let's see if a VA Compromise Sale or the Department of Defense HAP program might help you with your future home sale.

Posted by

                                   Real People*Real Lives*Real Estate

If you are interested in learning more about the Northern Virginia Real Estate market including Alexandria, Arlington, Fairfax and Prince William Counties give Cindy Jones and Integrity Real Estate Group a call at 703-346-2213.

Military Relocation Specialist serving military families relocating to and from the Pentagon, Fort Belvoir, Quantico MCB and all of the Military District of Washington installations. 

Military Relocation Professional


Check out www.varealestatetalk.com and www.cjrealtygroup.com for more information.

Integrity Real Estate Group
 
Real People*Real Life*Real Estate

Licensed in the Commonwealth of Virginia



 

 

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Re-Blogged 4 times:

Re-Blogged By Re-Blogged At
  1. Renée Donohue~Home Photography 12/28/2009 12:29 AM
  2. Sybil Campbell 02/21/2010 01:29 PM
  3. Margaret Woda 07/30/2010 08:43 AM
  4. Pat Fenn 12/21/2010 02:40 PM
Topic:
Real Estate General Information
Location:
Virginia Fairfax County Fort Belvoir
Groups:
Military Relocations
RE/MAX Active Rain Bloggers
Northern Virginia Real Estate
Dedicated Bloggers
Addicted to Active Rain
Tags:
military relocation
va loans
fort belvoir relocation
hap
va compromise sale
department of defense hap

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Rainmaker
45,810
Lori Cofer
Beasley Realty - Moscow, ID
REALTOR, Moscow Idaho Real Estate

Cindy,

Our military families make so many sacrifices...I have to say I hadn't thought of the situation until reading your most well informed blog.  I am glad you keep on top of these programs to help!

Dec 27, 2009 12:51 AM #5
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Chris Ann Cleland
Long and Foster REALTORS®, Gainesville, VA - Bristow, VA
Associate Broker, Bristow, VA

Cindy:  Does this mean that pending sales under HAP are about to go through?  There's one on my street that's been under contract since July 10th.  Buyers moved in pre-settlement because getting the HAP guidelines were taking so long.

Dec 27, 2009 02:10 AM #6
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Gerry Michaels
Glasswork Media Arts - Gettysburg, PA
GettysburgGerry Social Meida

Cindy, I was completely unaware of these programs, this is really great information. I have book marked for further reading. Thanks

Dec 27, 2009 06:38 AM #7
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Cindy Jones
Integrity Real Estate Group - Woodbridge, VA
Pentagon, Fort Belvoir & Quantico Real Estate News

Lori-they do and at least in our current market conditions there are options that they can consider to help them sell without undertaking a short sale.

Dec 27, 2009 09:49 AM #8
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Cindy Jones
Integrity Real Estate Group - Woodbridge, VA
Pentagon, Fort Belvoir & Quantico Real Estate News

Chris Ann-I have 5 and one is scheduled for closing this week.  Just waiting to see if the check will make it but it has been cut!  Three more are scheduled in January and final letters with benefits and amounts have been processed.  Fingers crossed.

Dec 27, 2009 09:51 AM #9
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Cindy Jones
Integrity Real Estate Group - Woodbridge, VA
Pentagon, Fort Belvoir & Quantico Real Estate News

Gerry-If you have any military families who may qualify point them to the official websites and they may be among the fortunate ones who qualify for the programs.

Dec 27, 2009 09:52 AM #10
Rainmaker
444,173
Joan Zappa
Eagles Wings Realty - Montrose, CO
Professional treatment of our clients, brings awes

Cindy this is really interesting information. We really owe it to our military personal to help them get through these times.

Dec 27, 2009 11:12 AM #11
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Renée Donohue~Home Photography
Savvy Home Pix - Allegan, MI
Western Michigan Real Estate Photographer

I am working with a potential HAP seller right now!  This is great 411 & worthy of a reblog!

Dec 28, 2009 12:27 AM #12
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Cindy Jones
Integrity Real Estate Group - Woodbridge, VA
Pentagon, Fort Belvoir & Quantico Real Estate News

Nick-absolutely and fortunately these options exists to help out military families underwater today.

Dec 28, 2009 01:15 AM #13
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Cindy Jones
Integrity Real Estate Group - Woodbridge, VA
Pentagon, Fort Belvoir & Quantico Real Estate News

Renee-thanks I'm in a military heavy area and we are seeing a lot of HAP sales.

Dec 28, 2009 01:16 AM #14
Rainer
166,504
Ken Montville
RE/MAX United Real Estate - College Park, MD
The MD Suburbs of DC

Hey, Cindy.  I just went to setlement on a HAP sale for a couple that had been at Walter Reed Army Medical Center and got transferred to Ft. Riley, KS.  They were horribly upside down with their mortgage. Luckily, HAP came through for them.

However, it is not for the faint of heart and the active duty military home owner really needs to stay on top of things.  This is a situation where the Realtor and the home seller really need to be able to work in sync. If everything goes well, the seller is able to sell their home without the stigma of a short sale or foreclosure, the buyer gets a house at a good value and the Realtor gets paid.

It doesn't get much better than that!

Dec 28, 2009 03:28 AM #15
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Cindy Jones
Integrity Real Estate Group - Woodbridge, VA
Pentagon, Fort Belvoir & Quantico Real Estate News

Ken-congratulations.  You are right that it does require that everyone stay in sync.  So far I think I have all of mine lined up and getting close to settlement. 

Dec 28, 2009 06:58 AM #16
Rainer
273,383
Irene Tron
Valparaiso, IN

Thank you for making us aware of the help that is out there for military families.  Post has been bookmarked.

Dec 30, 2009 06:35 AM #17
Rainmaker
884,006
Gail Robinson
William Raveis Real Estate - Southport, CT
CRS, GRI, e-PRO Fairfield County, CT

Cindy - Just wanted to thank you for being on the panel at Rain Camp yesterday.  I really enjoyed meeting you in person.

Jan 13, 2010 05:55 AM #18
Rainmaker
394,850
Elizabeth Cooper-Golden
Huntsville Alabama Real Estate, (@ Homes Realty Group) - Huntsville, AL
Huntsville AL MLS

Cindy, What a great post.   I'm glad you provided our Military families with this great information!

Feb 21, 2010 01:36 PM #19
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Cindy Jones
Integrity Real Estate Group - Woodbridge, VA
Pentagon, Fort Belvoir & Quantico Real Estate News

Irene-it is one of the smartest moves the government made in all of the assistance plans last fall.

Gail-gosh I missed these last few comments for awhile.  Sorry Rain Camp was a blast and I'm still sorting through information.

 

Elizabeth-since I first posted this military families are getting their homes sold under the program without doing a short sale.

Feb 21, 2010 11:25 PM #20
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Margaret Woda
Long & Foster Real Estate, Inc. - Crofton, MD
Maryland Real Estate & Military Relocation

Cindy, I just re-blogged this, following up on our earlier communication.

Jul 30, 2010 08:46 AM #21
Rainmaker
206,770
Pat Tasker
Shorewest Realtors - Germantown, WI
Your Milwaukee Metro Area Agent (WI)

I had a seller that was in the military, and they said his security clearance would be cancelled if he did a short sale...

Dec 21, 2010 02:57 PM #22
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Cindy Jones
Integrity Real Estate Group - Woodbridge, VA
Pentagon, Fort Belvoir & Quantico Real Estate News

Margaret-thanks. 

Dec 22, 2010 12:25 AM #23
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Cindy Jones
Integrity Real Estate Group - Woodbridge, VA
Pentagon, Fort Belvoir & Quantico Real Estate News

Pat-i've had that conversation with a couple of clients with security clearances and it hasn't happened.  For a military familiy who doesn't qualify for HAP and HAS PCS orders it is an explanable situation versus someone who does a strategic default.

Dec 22, 2010 12:26 AM #24
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