Military Personnel get a leg up during housing crisis.

Have you ever heard of the Homeowner's Assistance Program (HAP)?  This program was expanded with the American Recovery and Reinvestment Act of 2009.  The program assists members of the military and select civilian employees sell their houses during the declining housing market.  It's a great program aimed at helping the families move without having to go through the short sale process and therefore keeping their credit intact for their next assignment.

Benefits

Private Sale

Eligible applicants may be compensated for the difference between 95% of the appraised fair market value of the property prior to the announcement date, and the appraised value of the property at the time of sale, or the sales price, whichever is greater. Closing costs are reimbursed for private sales.

Government Purchase

The Government might purchase your property at 75% of your purchase price, or mortgage payoff. If this occurs, the government will sell the home to the buyer you and your realtor located and pay the realtor fees.

NOTE: It is a DOD policy to insure that HAP funding remain available to assist the maximum number of applicants as opposed to using the funds for administratve costs associated with maintenance and resale of a large housing inventory.

Foreclosure Assistance

If foreclosure proceedings have commenced, an applicant may elect to receive foreclosure benefits or private sale benefits. Foreclosure benefits may be paid directly to the applicant to reimburse for foreclosure costs paid by the applicant, or paid to third parties on the applicant’s behalf.

NOTE: Eligible HAP applicants who work at overseas installations announced for closure or realignment may receive only private sale benefits. Government purchase benefits are not available at overseas installations.

How HAP assists you

HAP provides assistance in four ways. For eligible applicants, the Government may:

1. Reimburse you for part of your loss from selling your home.
2. Assist you, if you don’t have funds from the sale of your home to pay-off your mortgage.
3. Purchase your home by paying off the mortgage.
4. Help, if you default on your mortgage.

Qualifying Criteria:

• Any member of the Armed Forces (including Coast Guard) in medical transition who:
• Incurred a wound, injury, or illness in the line of duty during a deployment on or after 11 Sep 2001; and is
• Disabled to a degree of 30 percent or more as a result of such wound, injury, or illness; and
• Reassigned in furtherance of medical treatment or rehabilitation, or due to medical retirement in connection with such disability, and
• Establish and adequate nexus between condition and decision to relocate from primary residence.
• Any civilian employee of the Department of Defense or the United States Coast Guard who:
• Suffer wound, injury, or illness on or after 11 Sep 2001,in the performance of his or her duties during a forward deployment occurring, in support of the Armed Forces; and
• Relocate from their primary residence in furtherance of medical treatment, rehabilitation, or due to medicalretirement resulting from the sustained disability, and.
• Establish and adequate nexus between condition and decision to relocate from primary residence
• Military Deployment: 
• Performing service in a training exercise or operation at a location or under circumstances that make it impossible or infeasible for the member to spend off-duty time in the housing in which the member resides when on garrison or installation duty at the member’s permanent duty station, or home port, as the case may be.
• Civilian Forward Deployment:
• Performing service in an area where the Secretary of Defense or the Secretary’s designee has determined that Service members are subject to hostile fire or imminent danger under Section 310(a)(2) of title 37, United States Code.
• Surviving Spouse:
• The spouse of a member of the Armed Forces or a civilian employee of the Department of Defense or the United States Coast Guard if:
• The member or employee dies as a result of a wound, injury, or illness while deployed (or forward deployed for civilian employees) on or after September 11, 2001, and
• The spouse relocates from the member’s or civilian employee’s primary residence within two years of the death of such spouse.

For more information on this program go to http://hap.usace.army.mil/ 

I recommend you use a real estate professional experienced in working with the Home Ownership Program.