Welcome to an ongoing discussion of the HAP Program! If you're not familiar with the HAP program, I suggest you read the intro as well as the 1st question of the week. Basically it's a government program designed to help families affected by the closure of a military base. In my community, Brunswick Naval Air Station is the base that is scheduled to close. I've received so many questions regarding this program, I've decided to post one a week along with the answer.
Question 2: What benefits are available under HAP?
Answer: There are numerous benefits available, and each apply to a different situation. If you are eligible, the following benefits may be available to you...
1. Private Sale Benefit: If you took a loss from the sale of your home, you are eligible for the Private Sale Benefit. The government will reimburse you the difference between 95% of the appraised fair market value of the property before the announcement date and the appraised value at the time of sale, or the sale price ...whichever is greater. In our case, the announcement date is June 2005. So basically, if you take a loss on the sale of your house, the government will reimburse you 95% of the profit you could have made before the closure. Closing Costs are reimbursed for private sales. Confused Yet?
2. Private Sale Augmentation Benefit: If you are able to sell your house, but you don't make enough to pay off the mortgage, the HAP Program allows the government to pay off your mortgage for you. This benefit allows applicants to sell their homes for less than the mortgage payoff as long as the sale proceeds combined with the HAP benefit are enough to pay the mortgage balance and all closing costs. . HAP may pay the difference at closing between the sale price and the loan balance (payoff) to the mortgage company and other associated costs may be included
3. Government Acquisition: The government purchases your home by paying off the mortgage. If you choose to go this route, the purchase price you will receive will not exceed 75% of the appraised market value prior to the announcement date, or the current total amount of the mortgage...whichever is greater.
4. Foreclosure Benefit: If foreclosure proceedings have already begun, you may choose to receive foreclosure benefits or private sale benefits. Foreclosure benefits may be paid directly to the applicant to reimburse for foreclosure costs or paid to third parties on the applicant's behalf.
Confusing? Yes...a bit. After all, for the majority of the homeowners involved, this is uncharted territory! I recommend that everyone apply for the program, but keep in mind that HAP is designed to be a last resort..not your first plan of action! If you'd like to discuss the steps involved in the HAP Program, or if you're interested in putting your home on the market, call The Hershey Home Team! Be sure to check back next week for Question #3!
Comments(0)