Destin Florida Short Sales & Real Estate by Wendy Rulnick: Florida: Eglin AFB

As an Eglin AFB area agent who specializes in HAP listings, I frequently receive offers from agents who are not familiar with the HAP program.  Since our Emerald Coast area is home to Air Force, Navy, Army and Marines at Eglin AFB, Hurlburt Field, Duke Field, Whiting Field and Camp Rudder, you will find several listings that are sale type “HAP” when searching the Emerald Coast MLS.

 If a HAP home seems right for your buyer, what do you do?

First, know what HAP means.  It is the Homeowners Assistance Program for the Department of Defense.  HAP helps military members who have orders to relocate, but own homes with negative equity, cover their mortgage losses in order to sell.  The HAP program was expanded in 2009 to help Wounded Warriors, Surviving Spouses, BRAC-impacted service members and PCSing service members.  If the service member qualifies, HAP will pay their mortgage deficit at closing.

How does HAP benefit your buyer? AP HExplain to your buyer why HAP is more favorable than buying a short sale. With HAP, the waiting time is normally 60 days for final approval, and 30 days to close. That is better than a short sale which could take 120 days or more for approval.  And most HAP sellers have been pre-approved for the HAP program, which  will save even more time.  (Ask the listing agent to find out.)

What do you put in the HAP contract?  Specify that it is “contingent on HAP approval”.  Use a date-certain closing date that is 60 days out.  I know, this seems to contradict that HAP wants 60 days for approval, but they also want a 60 day closing date written in the offer (not closing “within 30 days of HAP approval”).

Price?  HAP wants contracts that are near fair market value.  They will validate pricing through their internal system, and also via the listings agent’s market analysis.

Terms? HAP contracts should be “as is”.

Closing cost assistance?  HAP may pay some of the buyer’s closing costs. It depends on what type of HAP program the seller is using.  If it is a HAP GAPS (Government Assisted Private Sale), where the seller is getting a reimbursement, your buyer may not be able to get as much closing costs paid as a GA (Government Acquisition).    

What’s next? Depending on what type of HAP sale is best (GAPS or GA), HAP may replace your contract with a new one that is between the United States and your buyer.  If there is a replacement contract, your buyer can pick his own title agent. The U.S. will simultaneously buy the house from the seller and sell it to your buyer on the same day.

Finally – congratulations are in order!  You’ve found your buyer a new home in Crestview, Navarre, Fort Walton Beach or Destin Florida, had a quick closing and helped a U.S. military member with the HAP program!

It's Wendy!

Wendy Rulnick, Broker, Rulnick Realty, Inc.

Call toll-free 1-877-487-9639 or local 850-650-7883 ext 204

Email Wendy: itswendy@rulnickrealty.com

Destin Short Sales & Pre Foreclosure Help.

Read Wendy's Destin Real Estate Blog

Wendy is a short sale, HAP and pre-foreclosure specialist and has been featured in "Kiplinger Personal Finance Magazine" and "Florida Realtor Magazine". Call Wendy Rulnick, Broker/Owner, to list and sell your home or condo on the Emerald Coast of Florida in Walton, Okaloosa and Santa Rosa County-  Destin, Santa Rosa Beach, Fort Walton Beach, Niceville, Bluewater Bay, Navarre, Seagrove Beach, Watercolor, Sandestin, Seaside, Crestview, Rosemary Beach, Mary Esther, Shalimar, Eglin AFB, Hurlburt Field. 

HAP is the Homeowners Assistance Program that helps Eglin Air Force Base or Hurlburt Field airmen PCSing to new bases who have upside-down equity in their homes.  That is, their mortgage balances are more than the fair market values of their properties. HAP helps those military members who are ordered to transfer to new bases avoid foreclosure, short sale and VA Compromise Sale by paying off the mortgage balance not covered by the sales proceeds due to declining market values.  If you qualify for HAP, there are three main programs for assistance:  Government Acquisition (GA), Government Assisted Private Sale (GAPS), and Private Sale (PS).  

In this article, we’ll example the Government Assisted Private Sale (formerly called Private Sale Augmentation).  Will it work for you? Let’s see…. 

GAPS is a more complicated HAP program, but you could end up putting dollars in your pocket if the calculations work in your favor. To figure out how much of your mortgage and closing costs it will cover, HAP calculates  90% of your prior fair market value (your purchase price plus costs of improvements), adds about 7% for closing costs, then subtracts out your new purchase price and mortgage payoff, plus any buyer credits and actual closing costs.  If you have put enough improvements into your home, or the purchase price is high enough, or your mortgage payoff low enough, that's where this program makes sense - your mortgage and closing costs will be covered and you get money back at closing. Let's look at an example.

For our example, let’s start with these numbers.

Original Purchase Price             $300,000

Improvements                             $20,000

Total Prior Fair Market Value    $320,000 (PFMV)

PFMV $320,000 x 90% =              $288,000 (HAP benefit)

Sale Price                                    $200,000

HAP Closing Cost Estimate       $14,000 (sale price x 7%)

Outstanding Mortgage               $250,000

Seller Subsidy,Closing Costs    $7000

Now, to put our calculations together….

Property Benefit = .90 X 320,000(PFMV) = 288,000 - 200,000 (sale price)  = $88,000 (property benefit)

Estimated HAP Benefit = 88,000 + 14,000 (est closing costs)  = 102,000
Cash to Closing = (200,000 purchase price  + 102,000 = 302,000) - (250,000 mortgage balance  + 7,000 seller subsidy = 257,000) = 45,000
SELLER GETS $45,000 Back at closing!

How would the GAPS HAP Program not work for the Eglin AFB Service Member? Let’s alter the numbers, and pretend the outstanding mortgage balance were higher, let’s say $285,000, and the sale price lower, like $180,000, and all the other numbers were the same.

In that case:

Cash to Closing = (180,000 purchase price  + 102,000 = 282,000) – (285,000 mortgage balance  +7,000) = 292,000) =  -10,000 Uh Oh!! Seller would have to bring $10,000 to closing!  This GAPS program would not work to the benefit of the Eglin or Hurlburt airman.

What’s the alternative? Use the standard HAP Government Acquisition (GA) program.  In the GA program, HAP will simply pay off the mortgage balance at closing, plus 3% buyer credit of allowable closing costs.  There would be a closing first between the U.S. and the service member, then a same-day closing between the U.S. and the buyer the service member found through his Realtor who specializes in HAP.

There are more detailed criteria that apply to each HAP scenario.  If you are PCSing, need to sell, and want to avoid foreclosure, short sale or VA Compromise Sale, HAP may be your best option.  Questions?  Give me a call.

It's Wendy!

Wendy Rulnick, Broker, Rulnick Realty, Inc.

Call toll-free 1-877-487-9639 or local 850-650-7883 ext 204

Email Wendy: itswendy@rulnickrealty.com

Eglin AFB Short Sales & Pre Foreclosure Help.

Read Wendy's Eglin AFB Real Estate Blog

Wendy is a short sale and pre-foreclosure specialist and has been featured in "Kiplinger Personal Finance Magazine" and "Florida Realtor Magazine". Call Wendy Rulnick, Broker/Owner, to list and sell your home or condo on the Emerald Coast of Florida in Walton, Okaloosa and Santa Rosa County-  Destin, Santa Rosa Beach, Fort Walton Beach, Niceville, Bluewater Bay, Navarre, Seagrove Beach, Watercolor, Sandestin, Seaside, Crestview, Rosemary Beach, Mary Esther, Shalimar, Eglin AFB, Hurlburt Field. 

If you are an Eglin Air Force Base, Hurlburt Field or Whiting Field airman, have PCS orders and need to sell your home, you may have heard of HAP. HAP is the Department of Defense’s Homeowner Assistance Program.  The program was expanded to help PCSing service members sell their properties, when “upside down” in mortgage value.  For example, you owe $250,000 on your mortgage, but your Navarre Florida home is only worth $150,000. If you qualify, HAP may pay your entire shortfall at closing when you find a buyer.  This is a wonderful program that can help you avoid foreclosure, short sale or VA Compromise Sale on your Navarre, Crestview, Niceville or Destin Florida area home.

Here is an overview of HAP Steps and Mortgage Qualifications:

1. Your current mortgage balance must be 90% of your Prior Fair Market Value (PFMV).  PFMV is your original purchase price plus any capital improvements you can substantiate.

2. If you refinanced your loan after purchase, HAP will only cover the original loan amount.  So if your refinanced mortgage amount (or equity line) is higher than your initial loan, you can submit home improvement receipts that add up to the difference. If they don’t add up to the difference – you would have to pay the excess amount yourself.

3. You apply for HAP.

4. You list your Navarre, Crestview, Freeport, Niceville or Fort Walton Beach area home with a Realtor specializing in HAP (can be done simultaneously with HAP application).

5. We find a buyer for your home who pays fair market value with reasonable closing costs.

6. You submit the purchase and sale contract, with a market analysis to HAP.

7. Your file is assigned to a HAP Benefits Realty Specialist. The Specialist will gather any necessary documents from you, such as Applicant Date Request Sheet, buyer pre-approval, property survey, Mechanic’s Lien Affidavit, and Election of Benefits letter.  The contract purchase price will be reviewed to ensure it is for fair market value. Your Benefits Realty Specialist will also request the loan payoff amount from your mortgage company.

8. Once you are approved, HAP will send you an Offer Letter. When you sign it, HAP will proceed to order title work on your property. HAP has its own title company, and your buyer may choose any title company he wants.

9. The U.S. will then write a substitute contract between the buyer we found and the U.S. HAP states they will “pay any agreed to Buyers closing costs and Realtor commissions, given that they are at a standard and customary rate. HAP does not cover home warranties. Any repairs requested from the Buyer during the inspection will be the responsibility of the Applicant and will need to be taken care of within the time frame agreed to on the original contract between the Applicant and Buyer. Any personal property items agreed to remain with the property will be included in the new sales contract. The Applicant is responsible to provide these agreed to items and ensure that are conveyed with the property at closing.”

10.  The final signed copy of the replacement contract will be sent out to you, the buyer, Realtors, and title agent.  Your HAP closing documents will be express mailed to you.  You will have to sign, date and get your documents notarized as required.  If there are any outstanding monetary amounts due from you, such as mortgage interest, or loan not covered by HAP, you will need to include a certified check with your closing package.

11.  Congratulations – your Crestview, Navarre, Niceville or Destin home is sold and your mortgage is paid off!

If you are an Eglin or Hurlburt airman, and need to take advantage of HAP, apply soon.  Funding is limited. Contact Wendy Rulnick for a HAP program overview and move “on”!

It’s Wendy!

Wendy Rulnick, Broker, Rulnick Realty, Inc.

Call toll-free 1-877-ITS-WNDY (1-877-487-9639) or local 850-650-7883 ext 204

Email Wendy: itswendy@rulnickrealty.com

Wendy is a short sale, HAP,  VA Compromise and real estate specialist and has been featured in "Kiplinger Personal Finance Magazine" and "Florida Realtor Magazine". Call Wendy Rulnick, Broker/Owner, to list and sell your home or condo on the Emerald Coast of Florida in Walton, Okaloosa and Santa Rosa County-  Destin, Santa Rosa Beach, Fort Walton Beach, Niceville, Bluewater Bay, Navarre, Seagrove Beach, Watercolor, Sandestin, Seaside, Crestview, Rosemary Beach, Mary Esther, Shalimar, Eglin AFB, Hurlburt Field. 

If you are an Eglin Air Force Base or Hurlburt Field airman, you may have heard of “HAP”.  HAP is the Department of Defense Homeowner Assistance Program that was expanded to help PCSing service members who are “upside down” in their mortgage loans.

You may have read the HAP website and think you don’t qualify for the program.  One of the main qualifications is that you owned your home prior to July 1, 2006. Think again!  There is almost a footnote on the site, that corrects the ownership date requirement:

 "Q. If I had a contract to purchase my home prior to July 1, 2006, but closed after that date, do I qualify?  

 A. If you are a Military PCS eligible applicant and were under contract to purchase prior to 1 July 2006 and closed after that date, you would qualify"

According to the Emerald Coast Association of Realtors statistics, about 400 properties were placed under contract between January to July 1, 2006 which closed in July or later.  These homes were in Navarre, Crestview, Destin, Fort Walton Beach and Freeport Florida.  One of these buyers may have been “you”!  I just helped an Eglin AFB airman whose home purchase and sale agreement was dated June 30, 2006, and who closed later in July.  He is qualified for HAP!

If you are an Eglin, Hurlburt or Duke Field airman in need of HAP PCS assistance, investigate your options before resorting to short sale, VA Compromise sale or foreclosure.  Contact a HAP - experienced real estate agent.

It's Wendy!

Wendy Rulnick, Broker, Rulnick Realty, Inc.

Call toll-free 1-877-ITS-WNDY (1-877-487-9639) or local 850-650-7883 ext 204

Email Wendy: itswendy@rulnickrealty.com

Short Sale, HAP, VA Compromise Sale Help.

Wendy is a short sale and pre-foreclosure specialist and has been featured in "Kiplinger Personal Finance Magazine" and "Florida Realtor Magazine". Call Wendy Rulnick, Broker/Owner, to list and sell your home or condo on the Emerald Coast of Florida in Walton, Okaloosa and Santa Rosa County-  Destin, Santa Rosa Beach, Fort Walton Beach, Niceville, Bluewater Bay, Navarre, Seagrove Beach, Watercolor, Sandestin, Seaside, Crestview, Rosemary Beach, Mary Esther, Shalimar, Eglin AFB, Hurlburt Field. 

This beautiful home on Shire Lane in Silver Oaks, Crestview Florida just sold.  The home had impeccable upkeep. It was 2751 square feet, four bedrooms, two full baths and two car garage. The landscaping was outstanding. The sale price was $218,000.

This home sold as an Eglin Air Force Base HAP Private Sale.  HAP (Homeowners Assistance Program) is a program which assists U.S. military service members relocating to new bases, called PCS (permanent change of station).  In these cases, the service member's mortgage exceeds the market value due to home values declining.  Under certain circumstances, HAP will cover the mortgage loss.  With a HAP Private Sale, the government reimburses the military service member after closing for the loss, including closing costs up to 3% for conventional loans.  The service member would bring funds to closing to cover the deficit between the contract net and the mortgage balance.  HAP would reimburse based on 90% of the original sale price plus improvements. 

With a HAP Augmented Sale (also called Government Aquisition), HAP will cover the loss at closing not to exceed the mortgage payoff.  You can see that the HAP Private Sale will help the service member recoup more of their losses.  HAP Private Sale is not an option for all service members, since the mortgage deficiency may be significant, and they would have to initially cover the loss with their own funds, while waiting for reimbursement.

For help with your Eglin Air Force Base or Hurlburt Field HAP sale, contact an experienced real estate agent specializing in HAP, VA compromise sales and short sales.

 It's Wendy!

Wendy Rulnick, Broker, Rulnick Realty, Inc.

Call toll-free 1-877-487-9639 or local 850-650-7883 ext 204

Email Wendy: itswendy@rulnickrealty.com

Wendy is a short sale, pre-foreclosure and HAP specialist and has been featured in "Kiplinger Personal Finance Magazine" and "Florida Realtor Magazine". Call Wendy Rulnick, Broker/Owner,to list and sell your home or condo on the Emerald Coast of Florida in Walton, Okaloosa and Santa Rosa County-  Destin, Santa Rosa Beach, Fort Walton Beach, Niceville, Bluewater Bay, Navarre, Seagrove Beach, Watercolor, Sandestin, Seaside, Crestview, Rosemary Beach, Mary Esther, Shalimar, Eglin AFB, Hurlburt Field. 

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The military's Homeowner Assistance Program is getting speedier all the time!  I just had another HAP contract approved, this time for a Crestview Florida home sale in the Redstone subdivision.  The sellers were PCSing from Eglin Air Force Base more than 50 miles away.  They purchased their home prior to July 2006, their property value had declined at least 10% and they met other HAP requirements.  Primarily, they owed more on their mortgage than the property was worth. 

That's where HAP comes in to help our military service members.  HAP will pay the mortgage shortfall at closing to assist the service member relocate to a new base. 

For this Crestview Florida HAP sale, the airman sent in a complete application along with the real estate contract and market analysis which I provided.  HAP approved the sale in about four weeks.

Here are some quick hints for Eglin Air Force Base or Hurlburt Field HAP sellers:

HAP will normally contribute 3% of the purchase price for closing costs on conventional sales.

HAP will pay the Realtor fee.

You must keep your mortgage current, pay any liens, judgments and prorated property taxes.

To speed your approval process, always send in a complete application, and hire an experienced HAP real estate agent.

It's Wendy!

Wendy Rulnick, Broker, Rulnick Realty, Inc.

Call toll-free 1-877-ITS-WNDY (1-877-487-9639) or local 850-650-7883 ext 204

Email Wendy: itswendy@rulnickrealty.com

Eglin AFB FL Real Estate

Eglin AFB and Hurlburt Field Short Sales & Pre Foreclosure Help.

Read Wendy's Emerald Coast Real Estate Blog

Wendy is a short sale and pre-foreclosure specialist and has been featured in "Kiplinger Personal Finance Magazine" and "Florida Realtor Magazine". Call Wendy Rulnick, Broker/Owner,to list and sell your home or condo on the Emerald Coast of Florida in Walton, Okaloosa and Santa Rosa County-  Destin, Santa Rosa Beach, Fort Walton Beach, Niceville, Bluewater Bay, Navarre, Seagrove Beach, Watercolor, Sandestin, Seaside, Crestview, Rosemary Beach, Mary Esther, Shalimar, Eglin AFB, Hurlburt Field

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If you are buying a home around Eglin Air Force Base or Hurlburt Field, you may want to know about HAP properties. HAP stands for Homeowner Assistance Program, and it is designed to help military service members sell homes with upside-down mortgages. 

For example, if you are looking at a Crestview Florida home where the military seller owes $250,000 on the mortgage, and the home is only worth $150,000 (very common), this might be a scenario where HAP could help.  If the seller qualifies, HAP will cover his mortgage loss at time of sale, and allow you to buy it without waiting for a “short sale”.

HAP, run by the Army Corps of Engineers, assists airmen 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 generally meet these criteria:

1.    They entered into a contract to purchase their current home before July 2006.

2.    It was their primary residence when they got orders to move

3.    Their orders were between February 1 2006 through September 30, 2012.

4.    The property must have declined at least 10% in value.  (That should not be in problem in the Eglin AFB and Hurlburt Field market).

If you find a property in Crestview, Fort Walton Beach, Niceville or Navarre Florida that is specified as “HAP”, what does this mean to you?

1.     Your real estate contract should have language stating it is “contingent on HAP approval”.

2.    You should allow up to 90 days for approval.  The HAP processing time was about six months at the beginning of the year, but it is speeding up.  You may be approved quicker.

3.    HAP generally will pay competitive closing costs, perhaps 3% of the purchase price.  Be prepared that they may not agree with what you are asking.

4.    HAP wants fair market value for the property.  Do not expect to pay much less.  HAP will request the listing agent provide comparable sales data, and they will do an independent analysis, as well.

5.    Realize the Eglin AFB or Hurlburt Field service member will do the initial negotiations with you, and may not accept or may counter offer your proposal.

When it is time to close, HAP will do what is called an “Augmented sale” or “Government Acquisition”.  They will actually buy the property from the service member, then sell it directly to you. 

As you begin your home search in Crestview, Navarre, Niceville and Fort Walton Beach Florida, remember to check out HAP homes.  You may be HAPpy you did!

Eglin and Hurlburt Field HAP help

It's Wendy!

Wendy Rulnick, Broker, Rulnick Realty, Inc.

Call toll-free 1-877-ITS-WNDY (1-877-487-9639) or local 850-650-7883 ext 204

Email Wendy: itswendy@rulnickrealty.com

Search Crestview, Navarre and Fort Walton Beach FL Real Estate

Crestview, Navarre and Fort Walton Beach Short Sales & Pre Foreclosure Help.

Read Wendy's Blog

Wendy is a short sale and pre-foreclosure specialist and has been featured in "Kiplinger Personal Finance Magazine" and "Florida Realtor Magazine". Call Wendy Rulnick, Broker/Owner,to list and sell your home or condo on the Emerald Coast of Florida in Walton, Okaloosa and Santa Rosa County-  Destin, Santa Rosa Beach, Fort Walton Beach, Niceville, Bluewater Bay, Navarre, Seagrove Beach, Watercolor, Sandestin, Seaside, Crestview, Rosemary Beach, Mary Esther, Shalimar, Eglin AFB, Hurlburt Field. 

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Are you a U.S. military service member at Eglin Air Force Base who has been relocated by the government to a new base? Do you have to do a short sale?  Is your lender Chase? If so, you may not get any special consideration, despite PCS (permanent change of station) orders.

I am currently in negotiations with Wells Fargo and Chase, as junior lien holder, for a Fort Walton Beach Florida short sale.  The Eglin Air Force Base seller was transferred, or PCSd (permanent change of station), to a new base and had to sell his home.  Of course, he was substantially upside-down in his mortgage balance compared to his market value.  He has no choice but to follow orders and relocate.  He was not qualified for HAP due to the original purchase cut-off date of July 2006.  There is little hope of renting out the property to cover the mortgage payments.  This is a common scenario in my neck of the woods around Fort Walton Beach and Crestview Florida.

In the past few years, I have sold dozens of Eglin Air Force Base and Hurlburt Field military service member homes as short sales or VA Compromise sales.  U.S. government orders were never questioned and always deemed a sufficient hardship. These are not voluntary relocations.  They are required to ensure our safety and freedom. Not once have I had a request for cash or a promissory note from a short sale lender.  That is, until now.

It seems that Chase, after sending its loan to a collection agency, feels that the open line of credit my military airman has on a charge card is sufficient for him to cash advance $25,000.  With no release of the rest of his deficiency balance. There is no consideration to the new debt service our Eglin Air Force Base airman would incur.  Chase’s stance is that he either pays $25,000 and remains liable for deficiency balance, or he pays $35,000 to settle the account in full. 

That is, while he is fighting for us in Afghanistan. 

(Stay tuned for the end of the story.)

Wendy Rulnick, Broker, Rulnick Realty, Inc.

Call toll-free 1-877-ITS-WNDY (1-877-487-9639) or local 850-650-7883 ext 204

Email Wendy: itswendy@rulnickrealty.com

Eglin Air Force Base Real Estate

Eglin Air Force Base Short Sales & Pre Foreclosure Help.

Read Wendy's Eglin and Hurlburt Field Real Estate Blog

Wendy is a short sale and pre-foreclosure specialist and has been featured in "Kiplinger Personal Finance Magazine" and "Florida Realtor Magazine". Call Wendy Rulnick, Broker/Owner,to list and sell your home or condo on the Emerald Coast of Florida in Walton, Okaloosa and Santa Rosa County-  Destin, Santa Rosa Beach, Fort Walton Beach, Niceville, Bluewater Bay, Navarre, Seagrove Beach, Watercolor, Sandestin, Seaside, Crestview, Rosemary Beach, Mary Esther, Shalimar, Eglin AFB, Hurlburt Field. 

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Are you an airman PCSing from Eglin AFB or Hurlburt Field?  Are you upside down in your mortgage and owe more than your current property value?  If so, you may know I have been checking the HAP website daily for the last several months.  As I have previously reported, the site was taken down at one point, and all information was removed. 

Today, the site has changed and information is posted that may be useful to relocating military who might qualify for the government assistance to cover some of the loss.

1.  Qualifications include: PCSing more than 50 miles, having purchased your home or entered into a contract to purchase prior to July 1, 2006, you lived there and it was your primary residence, and your orders were between February 1 2006 through September 30, 2012.

2. Your home must have declined at least 10% in value.  (That should not be in problem in the Eglin AFB and Hurlburt Field market).

3. Assistance will initially be emphasized to those who received orders through December 2009, with a report date no later than February 28, 2010. 

4. HAP benefits are based on the amount you originally purchased the property for (prior fair market value PFMV verified by your settlement statement). The full amount of your negative value will not be reimbursed.

5. The site claims the government will provide benefits within 60 to 90 days of receiving your documents.  I would use caution here, as that claim was also made several months ago and no HAP benefits have yet been paid to my knowledge.

6. The site states that no specific dollar amounts of loss reimbursement are addressed and HAP advises you to contact your local district CoE office. For Eglin AFB,  Hurlburt Field and Duke Field, please contact the Army Corps of Engineers Savannah District.  However, elsewhere on its site, HAP mentions that up to 90% of your purchase price minus your sale price plus closing costs may be your benefit.

7. The government claims they will make up “liabilities” to servicemembers from a foreclosure, but not past due payments or junior liens you obtained after buying the property.

8. Some of your closing costs will be paid for, including title services and Realtor fees.

9. The government recommends you use a Realtor to sell your home and states that using a Realtor will may increase your chances of finding a buyer.

10. You are required to market your home for at least 120 days.  Your initial list price should be obtained by the Corps of Engineers automated value model for at least 30 days.

11. Your benefits will be taxable as income to you.

12. Caution:  Per the Realtor Guide , you or your Realtor must maintain records of price changes, showings, offers, etc to demonstrate that the house was not sold at too low a price.  The CoE office will obtain an appraisal to verify the price was within market range.  If the sales price is considered too low, no benefits will be paid.

 13.  There are maximum price range limits for assistance. In Okaloosa, Walton and Santa Rosa counties the purchase price limit for benefits is $417,000.

Here is the HAP application checklist and HAP application.

As soon as you know you have orders from Eglin AFB or Hurlburt Field, apply for assistance immediately.

Analysis and questions to follow. I would like to hear from you, our local servicemembers.

It's Wendy!

Wendy Rulnick, Broker, serving the entire Emerald Coast of Florida, Navarre, Fort Walton Beach, Crestview, Destin, Freeport, Mary Esther, Shalimar, Santa Rosa Beach.

Rulnick Realty, Inc.

itswendy@rulnickrealty.com

850-650-7883 ext 204

HAP, where are you?

HAP is the Homeowner Assistance Program for U.S. military members “who face financial loss” when selling their homes in order to PCS, or "permanent change of station" to a new base.  In other words, if you are an airman stationed at Eglin Air Force Base, Hurlburt Field or any other base and you have “orders” to move and your mortgage amount is more than the current value of your home- HAP is supposed to help you.  HAP was meant to help cover a significant portion of your losses so you can dispose of your real estate to PCS, even if you are upside-down in  your mortgage, without facing foreclosure.

But what is HAP doing?  I am sorry to say- NOTHING!  Thousands of servicemen have applied for help and many have already relocated - with no financial assistance. I have written a series of posts with information every time I get updates about the HAP program.  Each time I write a new blog, HAP changes its story and so far has done NOTHING to help upside-down Eglin AFB and Hurlburt Field airmen who are forced to relocate to new bases.  On a previous blog I posted a link to the Department of Defense Directive that detailed the new HAP policy for PCS moves.  When I checked the blog links about a week later- I found the information had been REMOVED from the HAP site.   Further, the HAP site used to have an expanded FAQ (Frequently Asked Questions) section that answered many questions about the new PCS help.  Those questions have been since REMOVED.  But not before I quoted them in another post.

Our military members are good citizens and purchased homes when they moved to Eglin AFB or Hurlburt Field.  Now, forced to PCS, they are faced with a choice:

1. Rent out their property, for an amount insufficient to cover their mortgage payment, due to declining rentals.  Most military do not have enough to cover the shortfall.

2. Let the property go to foreclosure.

3. Do a short sale.

4. Bring money to closing to cover the loss- highly unlikely since most Fort Walton Beach, Crestview and Navarre Florida homes purchased in the last few years are $100,000 or more upside-down.

5. Wait for HAP while doing any of the above.

When HAP finally puts an assistance policy in place, these servicemen may get reimbursed part of the loss on their upside-down mortgages.  But my question is-  what good is a reimbursement after a lender has foreclosed or a short sale has been completed?  By the time HAP starts working, it would be too late.  There will already be a hit on the airmen’s credit.  HAP representatives have suggested to me that the affected homeowner “borrow” an amount sufficient to cover the loss in a short sale, then wait for HAP funds.  My question – "HOW can an airman who earns $50,000 borrow a $100,000 note to “cover” an upside-down mortgage?"  He cannot.

HAP, you’ve got to help…  NOW.

It's Wendy!

Wendy Rulnick, Broker, CRP, CRS, GRI, ABR     Rulnick Realty, Inc.

Emerald Coast FL Real Estate

Emerald Coast Short Sales & Pre Foreclosure Help.

Read Emerald Coast Real Estate Blog

Call toll-free 1-877-ITS-WNDY (1-877-487-9639) or local 850-650-7883 ext 204

Email Wendy to sell your home or buy a home: itswendy@rulnickrealty.com

Call Wendy Rulnick, Broker/Owner Rulnick Realty, to list and sell your home or condo on the Emerald Coast of Florida in Walton, Okaloosa and Santa Rosa County-  Destin, Santa Rosa Beach, Fort Walton Beach, Niceville, Bluewater Bay, Navarre, Seagrove Beach, Watercolor, Sandestin, Seaside, Crestview, Rosemary Beach, Mary Esther, Shalimar, Eglin AFB, Hurlburt Field.   Wendy is a short sale and pre-foreclosure specialist and has been featured in "Kiplinger Personal Finance Magazine" and "Florida Realtor Magazine".

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