Military Short Sale, The HAP Program and HAP Sale 2012 ~ Help for upside down Military Home Seller and their 2012 PCS dates.

By
Real Estate Broker/Owner with VITUS Realty, LLC 18189

 




Military Short Sale, The HAP Program and HAP Sale 2012 ~ Help for upside down Military Home Seller and their 2012 PCS dates.

 

 

 

Once again spring is here, at least in most areas of the county.  In Seattle and JBLM, we’ve had a couple nice days now.  Anyway, spring 2012 means the annual PCS ( Permanent Change of Station ) House and question markmigration of the military to and from from JBLM Army and Air Force in Pierce County, and PSNS       ( Puget Sound Naval Shipyard ) in Kitsap County.  This also means there are hundreds of Military Members trying to figure out whether to sell their homes that they purchased 3 years ago, and now are upside down on their mortgages, if you owe more than your home is worth you’re in this category.  

 

 

 



For servicemembers upside down and needing help while considering a Military Short Sale in 2012 there are only a few options.

 

 

 

  1. Rent:  In general the majority of those thinking about a military short sale are also thinking of renting.  In most cases those in the military who bought 3-4 years ago zero down, will have to rent 10-15 years to see enough equity increase to break even, and reverse the upside down.
  2. Foreclosure:  Walking is an option.  As nasty as it sounds it’s some people’s best or only option.
  3. HAP Sale:  The  Military Short Sale “get out of jail free” card.  More on The HAP Program Here.  Bottom line you had to have bought before 01-JULY-2006, PCSd before 01-OCT-2010.  Application deadline is 01-OCT-2012.  The Homeowners’ Assistance Program is great if you qualify.
  4. Miltary Short Sale:   The FEB-2012 Billion National Mortgage Settlement created some great short sale possibilities for the Military, including

 

a)      No deficiency judgments.

 

b)      Mandatory Short Sale Agreements.

 

c)      Expedited Processing

 

There are some criteria to qualify.  You must not qualify for a HAP Sale, but bought between 1-JULY-2006 and 31-DEC-2008, or PCSd after 1-OCT-2010.  This means ALL PCSd Military Short Sale sellers. 

 

 

 

HAP LogoA huge benefit of the HAP Program and doing a HAP Sale in 2012, is that no credit hit, this isn’t the case with a Military Short Sale, although you will take a credit hit, you can still save your security clearance.  Hopefully the black marks on your credit for a Military Short Sale will be dealt with by our lawmakers in DC, but currently that’s not the case.  You wont be able to get a mortgage for a couple years after a short sale, but getting out from under a ton of negative equity, maintaining your security clearance and no longer being upside down on your mortgage should more than compensate for that.

 

 

 

If you would like more current 2012 information on Military Short Sales or The Hap Program, or are looking for some Help for upside down Military Home Seller and their 2012 PCS dates. email me johnrockshomes@gmail.com or call or text me John M. Cameron 206-910-0200.



Photo by jscreationszs



 

 

 

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Ambassador
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Cindy Jones
Integrity Real Estate Group - Woodbridge, VA
Pentagon, Fort Belvoir & Quantico Real Estate News
HAP is still going strong. I have two more under contract and another about to go on the market. So far the lenders don't seem to be rolling out any of the programs that were announced by the White House. All calls get the same standard reply "it takes time to roll out new programs.". Yet here we are in prime PCS season.
Apr 09, 2012 08:22 AM #1
Rainmaker
106,420
John Cameron
VITUS Realty, LLC - Seattle, WA
Real Estate Investing Seattle Tacoma

Hi Cindy and thanks for the comment!  Yes I have 3 under contract, but in my area all those PCSing don't qualify for the program, so I'm figure I better start writing to address their issues.  I heard, I cannot quote my source, that HAP is still receiving 200-300 applications per month.  So yeah it's still going...

 

 

Apr 09, 2012 08:30 AM #2
Rainer
16,578
Yvonne Schnee
Keller Williams Realty Moorestown - Lumberton, NJ

It is a great program for everyone who qualifies. I must admit, the funding came through much faster for my seller this past summer. I currently have another under contract & should be closing within the next couple of weeks.

Apr 09, 2012 11:05 AM #3
Rainmaker
106,420
John Cameron
VITUS Realty, LLC - Seattle, WA
Real Estate Investing Seattle Tacoma

Hi Yvonne!

Right now from Offer to close, with Savannah handling ALL the HAP files, it appears to be taking approx. 5 months to close.

Apr 09, 2012 11:45 AM #4
Anonymous
Anthony Dowd

Why are the banks pushing back on the Depart of Justices settlement that would have continued the HAP for PCS members?  The banks are using the Soldiers and Sailors Civil Relief Act (SCRA) to protect themselves from this judgement after they had already agreed to honor the HAP short sale for military members who will PCS in 2012.

Also, is the VA Home Loan Centers HAP short sale program legitimate?  They have told me 3 different things about who is absorbing the remaining balance on the mortgage after a short sale. 

 

Apr 16, 2012 11:10 PM #5
Rainmaker
106,420
John Cameron
VITUS Realty, LLC - Seattle, WA
Real Estate Investing Seattle Tacoma

Well the settlement doesn't extend the HAP dates at all.  It never did.  The comments in the settlement about extending HAP benefits to those that didn't qualify are eroneous.  

HAP and anything related to "VA Home Loan Centers" are completely different.  HAP is managed by the Army Corps of Engineers.  There really is no such thing as a HAP "short sale"...short sale refers to a bank taking less than what's owed on a property.  So HAP and VA compromise short sale are two different things.  

There is NO change of ANYTHING for a military member who is PCSing now.  Unless they have a conventional mortgage that is currently being serviced by one of the big 5 banks in the settlement.  The settlement doesn't apply to VA loans.

Apr 17, 2012 01:19 AM #6
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Rainmaker
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John Cameron

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