The US Department of Defense, in conjunction with the Army Corps of Engineers, recently announced the Homeowner Assistance Program (HAP). The program is designed to “assist eligible homeowners who face financial loss when selling their primary residence homes in areas where real estate values have declined because of a base closure or realignment announcement.” The program can benefit civilian personnel in some cases as well. Here are some of the basics taken directly from the website established as a resource for affected individuals:
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.
An eligible applicant may elect to sell the property to the government and receive, as the purchase price, an amount not to exceed 75% of the appraised fair market value prior to the date of the announcement, or the current total amount of outstanding mortgages, whichever is greater.
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:
- Reimburse you for part of your loss from selling your home.
- Assist you, if you don’t have funds from the sale of your home to pay-off your mortgage.
- Purchase your home by paying off the mortgage.
- Help, if you default on your mortgage.
For more information on this program visit http://hap.usace.army.mil/homepage.html
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