Can someone out in the active world explain to me about what is going on with HAP?

By
Real Estate Agent with Trident Realty Group

I am a local Realtor in San Diego and I have an "outstanding" client who is involved with a HAP deal.  My clients timeframe is 2011 and I am wondering if anyobdy knows when HAP will be sorting through the 2011 files?  We are supposed to close in September and I heard that HAP is running out of funds?  Any information is welcome.

Comments (6)

Cindy Jones
Integrity Real Estate Group - Woodbridge, VA
Pentagon, Fort Belvoir & Quantico Real Estate News

Justin I have closed 30 HAP transactions.  When you say 2011 files what do you mean?  When did your client's PCS from San Diego?  Files are processed by PCS date and PCS files fall behind wounded warrior and widow/widower files. 

I have had multiple transactions close this year all in less than 90 days.  Feel free to call me if you have other questions.

Is HAP running out of funds?  Per a Stars and Stripes recent article:

"As of February, the military had paid out $725.5 million in HAP funds to 4,825 claimants, leaving little of the fund’s $855 million left for the 4,560 claims still being processed. Although officials expect the program to recoup some of its expenses as homes purchased by the government are resold, it still faces a $400 million shortfall."

Aug 17, 2011 09:30 AM
Justin McEntee
Trident Realty Group - Solana Beach, CA

Good Afternoon,

 

The seller is not my client but I am pretty sure the sellers PCS orderes were 2011.  Does that make sense?  So do you think it would be possible that we are under contract and then HAP does not have funds shortly to pay off the mortgage?  That seems crazy to me.  My buyer is doing an interum occupany agreement waiting to be able to purchase the townhome.  I appreciate you writing back to me.  I am very new at activerain and am learning how to use it properly. 

Aug 17, 2011 09:55 AM
Cindy Jones
Integrity Real Estate Group - Woodbridge, VA
Pentagon, Fort Belvoir & Quantico Real Estate News

If the seller's PCS orders were in 2011 then they are not qualified for HAP.  The cut-off date for PCS orders was September 30, 2010.   As a listing agent on HAP transactions all of my contracts contain a contingency clause regarding HAP approval and funding.  I would suggest you talk with the listing agent on the property your client is buying and make sure they have received an approval letter stating they are qualified for HAP.  Hopefully you are wrong about their PCS order date and it was prior to the cut-off.

Aug 17, 2011 10:22 AM
Justin McEntee
Trident Realty Group - Solana Beach, CA

I must not be giving the correct information because the seller has stated that they received an approval letter already.  You are very smart to have your contingency I was very new to the HAP program when this deal first started and I probably relied on the listing agent too much.  Is there anyway to contact HAP to ask Someone information?  The listing agent told me that the seller is the only one that the military will stay in contact with?

Aug 17, 2011 10:39 AM
Cindy Jones
Integrity Real Estate Group - Woodbridge, VA
Pentagon, Fort Belvoir & Quantico Real Estate News

Actually they will talk to the listing agent, I do it regularily on my files.  They prefer email and after a benefits specialist is assigned I've had a few buyers agents on my transactions send inquiries which they respond to.  You need to realize the Regional offices are swamped so unless you have a problem I'd stay out of the way :-)  It generally takes between 75-90 days for a file to be processed, benefits released and closing.

Aug 17, 2011 01:08 PM
Justin McEntee
Trident Realty Group - Solana Beach, CA

Well at this point I am just going to stay out of the way and hope that all turns out as planned.

 

Aug 21, 2011 08:33 AM