HAP homes
For a Free Colorado Springs Relocation Guide, Email Kathy Torline at KTorline@msn.com
If you are moving to Colorado Springs and are interested in buying a home around Peterson AFB, Schriever AFB, Fort Carson, or the Air Force Academy, you may want to know more 
about HAP properties.
Related Articles:
- 6 BIG advantages of VA loans
- What is allowable for VA Seller Concessions?
- What are my housing choices near Fort Carson?
- Peterson AFB housing, what are my choices?
- 6 Key things to know about the Homeowners Assistance Program for Military families
Let's start with an explanation. HAP stands for Homeowner Assistance Program, and it is designed to help military service members sell homes that are worth less than they paid for it.
For example, if you are looking at a Colorado Springs home where the military home owner owes $250,000 on the mortgage, and the home is only worth $200,000, the owner may be qualified to sale their home in a HAP approved sale. If the seller qualifies, HAP will cover most of the mortgage loss at the time of the sale, and allow a new buyer to purchase it at it's current market value. It's important to note that this is not a traditional short sale and is not subject to lender(s) approval; and it doesn't take nearly as long as a short sale.
HAP, which is run by the Army Corps of Engineers, assists military personnel who are PCSing (permanent change of station) with orders to a new base more than 50 miles away. To qualify for the HAP program, the service members must meet these criteria:
- They entered into a contract to purchase their current home before July 2006.
- Their orders were between February 1 2006 through September 30, 2012.
- The property must have declined at least 10% in value.
If you find a home in Colorado Springs, Fountain, Peyton, or Fountain that is specified as "HAP", these are important facts for a buyer to know:
- Your Colorado Springs real estate contract should include language in the additional provisions section stating it is "contingent on HAP approval".
- You should allow up to 60 days for approval and closing. The HAP processing time was about three months at the beginning of the year, but it continues to speed up. The contract may be approved quicker.
- HAP will pay customary closing costs, maybe up to 3% of the purchase price. If they do not agree with the offer and closing costs, they may counter back.
- HAP wants fair market value for the property. Do not expect to pay substantially less. HAP may request the Listing Agent to provide comparable sales data to justify the contract price.
- Realize the Military Owner will do the initial negotiations with you, and may not accept your offer or may counter your proposal. But final approval on the price is subject to HAP approval.
- Negotiation on inspection items will also take place with the Military Owner, as they are still the owner of the property. It's up to them on how they want to handle inspection requests.
- You will be required to sign a Government contract in addition to the Standard Colorado Real Estate contract.
- When it is time to close, HAP will do what is called a "Government Acquisition". They will actually buy the property from the service member, then sell it directly to you.
If you want to find out more about relocating to Colorado Springs, Contact Kathy at 719-287-1049 KTorline@msn.com
Colorado Springs Real Estate Agent, An Expert You Can Trust
Selling Real Estate in the Colorado Springs area, including Monument, Fountain, Larkspur, Pueblo, Castle Rock, Manitou Springs, Woodland Park, Palmer Lake
Comments(0)