Virginia Beach Military Real Estate Home Owners to get Stimulus Help | Virginia Beach Real Estate News For Buyers And Sellers

HAP Update Virginia Beach/Hampton Roads Military Real Estate Home Owners to get Stimulus Help

filed under: Real Estate, Sellers posted on September 29th, 2009

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This an update to the previous article from 10 March and May, 2009 about the Real Estate Home Owners Assistance Program (HAP) available to service members and DOD civilians in the Virginia Beach and Hampton Roads area.

My inside sources at the Pentagon tell me that an announcement is coming soon from the White House or Office of Secretary of Defense very soon.

Once that announcement takes place then the bureaucrats can start processing the hundreds of applications they have from military personnel meeting the real estate guidelines. Hard to believe our Government takes so long to implement programs but not to be unexpected.

New HAP Real Estate Guidelines:

With the expansion, the Pentagon can now provide partial reimbursement for home-sale losses to other groups. Note that the highest priority is wounded warriors who relocate for medical treatment or medical retirement due to their disability and surviving spouse homeowners.

The priority order for the benefits are as follows:

– Wounded service members relocating for treatment or medical retirement, and for the surviving family members of those who have died while on deployment.

– Military and Defense Department civilian employees affected by BRAC without the need to prove whether the base closure or the general housing market decline caused the loss.

– Normal permanent change of station moves, but only on a retroactive basis that covers PCS moves between July 1, 2006, through Dec. 31, 2009.

Also:

For a member to qualify under the new rule, not only would the individual need to personally experience a 10% loss between the purchase price and sale price of their home, but the home must also be in a housing market area that has also suffered a 10% or greater decline.

All active and former members of the Army, Navy, Marine Corps, Air Force and Coast Guard, as well as DoD civilians who have sold a home since 2006 may visit the Homeowners Assistance Program Website to learn specific program criteria and eligibility.

The Government wants private real estate sales to take place versus acquiring them.

Set the allowable private sale reimbursment to 90% of Prior Fair Market Value for PCS move beneficiaries.

With only 555 Million appropriated the money may not last long. What is not clear is whether service member closing costs/fees are included in this or are a separate reimbursement. This item could impact home owners needing to sell under this program.

End of update

Help is on the way for Virginia Beach and Hampton Roads real esate home owners with the latest stimulus plan as reported by the Virginia Pilot online.

The stimulus provision is titled the Military Homeowners Assistance Program (HAP).

The stimulus signed into law by President Obama February 17th, will be extended to certain military homeowners who bought homes before July 1, 2006 and who sell the homes before Sept. 30, 2012. Read eligibility here………

HAP was originally written in response to rising foreclosures and the credit crisis, and seeks to add more than $400 million to help military homeowners who are in the middle of foreclosure, or unable to sell their homes in the event of a permanent change of station order.

More information on the HAP will be forthcoming.

As of this posting, HAP executors have not received guidance or implementation directives. Some items to consider:

1. Permanent reassignment requires move of more than 50 miles.

2. Reassignment ordered between 1 February 2006 and 30 September 2012 (or earlier date designated by Secretary of Defense).

3. Property purchased (or contract to purchase signed) before 1 July 2006.

4. Property sold by owner between 1 July 2006 and 30 September 2012, or earlier date designated by Sec. Def.

5. Property was the primary residence of the owner

6. Owner has not previously received these benefit payments.

posted by Dennis Blackmore

This entry was posted on Tuesday, September 29th, 2009 at 1:52 am and is filed under Real Estate, Sellers. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.