HAP PCS Eglin AFB and Hurlburt Field 6 Things You Need To Know

By now most Eglin Air Force Base and Hurlburt Field airmen are aware of the Homeowner Assistance Program (HAP). HAP has been expanded to help service members pay off much of their mortgage loss when PCSing to a new base and the value of their property has dropped below its mortgage balance. By using HAP the service member may avoid a short sale. There are many rumors floating around about HAP. I had the good fortune of speaking at length to the regional representative who covers the U.S. Army Corps of Engineers Savannah District. Savannah District services the military in the Eastern United States and Europe. Hopefully, the following Q and A I gleaned from our conversation will help you better understand your HAP PCS options:
1. How long will it take to get HAP benefits? Four to six months from time of application. Why so long? HAP is currently understaffed. There are over 4200 applicants in the Savannah District, around 6400 nationally. Savannah District has 55 employees, separated into 5 teams, each lead by a Realty Specialist. They are processing 80-100 applications per person. Three to four people are manning the toll-free lines. Most of the applications are missing data, so about 30 reps are assigned to asking applicants to complete all the needed information.
2. How can I get the quickest approval from HAP? The Savannah regional representative made it very clear Do your part-- send in as complete a package as possible. The Savannah District processes PCS applications in order of completeness! Remember, you dont need your orders to apply. Eligibility for HAP is determined a few weeks after application. (Of course, priorities are always Wounded Warriors, Surviving Spouses) Apply as soon as you know you will be getting orders.
3. Should I be concerned about the minimum marketing time on the HAP website of 120 days? If your home sells sooner than 120 days, HAP will still consider the offer if it is close to fair market value. It is important for you to get your real estate agent to do a market analysis supporting the contract price to provide to HAP. HAP wants agent assistance. If not, they use what is called an Automated Valuation Model (AVM) that is provided by a company called Core Logic. These valuations may not be as accurate as what your agent provides, and HAP is aware of that.
4. What else should I know about the calculations to determine my HAP benefit? The HAP website leaves out some very important information about the amount of your benefit. It is based not only your original purchase price, but on capital improvements you have done with receipts to show proof. For example, if you put on a new roof, installed a water heater, built a retaining wall, etc, those are considered capital improvements. What is not a capital improvement would be fixing a broken air conditioner, etc. Reference the IRS Selling Your Home publication for a guide on what a valid improvement is, HAP uses the same.
5. Will HAP pay more than the 90% reimbursement stated on their website? In reality, HAP will consider reimbursing up to 95%, per the regional rep I spoke with.
6. Will HAP pay more than 7% of the contract price towards closing costs, including your real estate agent commission? In reality, HAP will reimburse 10% towards closing costs. As the HAP regional rep stated, they want service members to be competitive in the market place, so if it helps to pay a bit toward buyer’s costs, they will do so. Currently under review is a national policy on exactly what costs HAP will cover. For example, they will not pay a buyer’s homeowner insurance, but might consider paying points.
This is a recap of just part of my discussion with the HAP regional rep. If you are a service member at Eglin AFB, Hurlburt Field, Whiting Field or Duke Field, and are considering HAP or a short sale for your next PCS move, give me a call or email me at itswendy@rulnickrealty.com. I will be happy to fill you in on the rest of the scoop.
It's Wendy
Wendy Rulnick, Broker, CRP, CRS, GRI, ABR Rulnick Realty, Inc.
Call toll-free 1-877-ITS-WNDY (1-877-487-9639) or local 850-650-7883 ext 204
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HAP is Back! Eglin PCS and Hurlburt Field PCS- New Info!

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. You may be reimbursed your mortgage interest, tax and insurance premiums you paid from the time the Army Corps of Engineers receives your application.
7. 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 95% of your purchase price minus your sale price plus closing costs may be your benefit.
8. 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.
9. Some of your closing costs will be paid for, including title services and Realtor fees.
10. 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.
11. 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.
12. Your benefits will be taxable as income to you.
13. 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.
14. 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.
If we can help with your move, call me at 850-650-7883 ext 204

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

HAP: Save Eglin and Hurlburt Airmen from Foreclosure!

HAP has done it again! I recently wrote about the military's Homeowner Assistance Program that is supposed to help our United States service members. When they have orders to relocate, or pcs, to a different military base, the newly expanded HAP would to cover up to 90% of the loss in the service member's upside-down mortgage. That would be wonderful, because many of our airmen, soldiers, marines and sailors purchased homes that are now worth less than the mortgage balances. The HAP program would probably save them from foreclosure or short sale. HAP has provided NO assistance since the initiative was expanded by the American Recovery and Reinvestment Act of 2009 that became law this February. HAP has continually removed information from its website. They have thousands of applicants awaiting help. They have done nothing.

And now it's worse.Just this morning, I was notified by Don Duft, a fellow Realtor serving military, that HAP HAS COMPLETELY REMOVED ITS WEBSITE.Friends, this is OUTRAGEOUS! Last time I wrote there is no help from HAP, now they are completely missing. It is time to take action! Don has shared a draft letter that I modified for your use. You may customize it to write your Senator or Congressman to do something to help our military members. Tell them HAP is TOO LATE to help thousands who have orders to pcs. Action must be taken NOW to support the men and women who defend us every day!
Honorable Senator or Congressman________

As Realtor working with Veterans and United States military members it appears that the DOD Homeowners Assistance Program is not responding to those authorized to be assisted in the 2009 Stimulus bill – those Active Duty Military in a Permanent Change of Duty Station (PCS). The 2009 PCS season is at its peak and the DOD does not have the rules issued by which an applicant can benefit. In fact, nothing has been done.

It is time that you step in to intervene for these deserving Active Duty Military members so they can complete their PCS move assisted by the program the Senate and House crafted and was signed into law. These brave men and women do not deserve foreclosure or ruined credit, while defending our nation. It is not encouraging and when you call it is even more discouraging.

Sincerely,YOUR NAME HERE
You can find your Senators here and your Congressmen here. Please do what you can and take a stand to help those who help us.

It's Wendy!
Wendy Rulnick, Broker, CRP, CRS, GRI, ABR Rulnick Realty, Inc. 850-650-7883
Eglin AFB and Hurlburt Field FL Real Estate
Short Sales & Pre Foreclosure Help for Eglin AFB and Hurlburt Field.
Read Real Estate Blog
Email Wendy to sell your home or buy a home: itswendy@rulnickrealty.com
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. Wendy is a short sale and pre-foreclosure specialist and has been featured in "Kiplinger Personal Finance Magazine" and "Florida Realtor Magazine".

HAP - Help Eglin AFB and Hurlburt Field PCS to New Bases!

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 is - "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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Eglin AFB and Hurlburt Field: HAP Program Gets DOD Directive

The Homeowner Assistance Program (HAP) for the military has just received the Department of Defense directive that will affect military PCS sellers who are upside down on their mortgages. I have published a series of updates on HAP, and this just-released update is summarized from the HAP website due to the urgent need for Eglin Air Force Base and Hurlburt Field airmen who have received orders:

Although DoD guidance has been established, we are unable to begin processing applications until we comply with rule making procedures established by the Administrative Services Act. District field offices are reviewing applications for compliance with DoD guidance and will notify applicants of eligibility as early as possible.Implementation Rules and Eligibility Criteria for American Recovery and Reinvestment Act (ARRA) Expansion of the DoD Homeowners Assistance Program (HAP)
The overall goal of the HAP is to minimize the amount of financial harm, risk of foreclosure, credit damage, or bankruptcy experienced by servicemembers and DOD civilian beneficiaries when they are compelled to move in an unprecedented real estate market as a result of their service to the United States. In that vein, the following policies provide a solid basis for determining eligibility for the ARRA HAP expansion and ensure this effort is managed efficiently and successfully.

• As the second priority category, the new policy will expand the HAP BRAC benefit by removing the requirement that the homeowner show that the BRAC closure or realignment action was the cause of the drop in the value of the home.
• The Department is also creating a temporary benefit for qualifying Permanent Change of Station (PCS) moves
• In all cases, the benefit is for a primary residence only, and the benefit may only be used once.
• Use Purchase Price as the Prior Fair Market Value (PFMV) for all beneficiaries, including BRAC
o Current Policy: PFMV is determined at the date of the BRAC announcement.
o Description of Change: The BRAC announcement date is not relevant to many new HAP beneficiaries. The best equivalent PFMV is to use the purchase price of the home. For BRAC and PCS moves, the home must have been purchased prior to July 1, 2006.
o Outcome: Avoids unnecessary claim costs because BRAC announcement date was near the peak of housing market and BRAC announcement date is no longer relevant.
• Set the allowable Private Sale reimbursement to 90% of Prior Fair Market
Value for BRAC (non-causation) and PCS move beneficiaries
o Current Policy: Prior HAP allows for 95% Private Sale reimbursement
o Description of Change: Losses on private sales will be reimbursed at 95% of PFMV for Wounded Warriors and Surviving Spouses, as well as BRAC communities that can prove causation. It will be reduced to 90% of PFMV for all other beneficiaries.
o Outcome: Communities that can show BRAC causation have an incentive to do so; reduces per-claim costs for BRAC (non-causation) and PCS moves; maximizes assistance to the fullest extent for Wounded Warriors and Surviving Spouses, and makes overall policy consistent with 10% individual loss eligibility threshold.
• Government acquisition (or mortgage payoff) will be 75% of PFMV for all beneficiaries (except Wounded Warriors/civilians and surviving spouses) who have made reasonable efforts to market their home and cannot sell under reasonable terms and conditions. Wounded Warriors, wounded civilians, and surviving spouses who cannot sell under reasonable terms and conditions will receive 90% of PFMV.
o Current Policy: Government acquisition is 75% of Prior Fair Market Value.
There is no standard level of effort a homeowner must make before the government acquires a home or pays off the outstanding mortgage.
o Description of Change: While statute allows purchase up to 90%, current policy limits government acquisition to 75% of PFMV. Only wounded warriors, wounded civilians, and surviving spouses would receive the full 90% of PFMV for government acquisition of their houses. As previously noted, losses from private sales will be reimbursed up to 95% of PFMV for wounded warriors, wounded civilians, and surviving spouses. These changes also strengthen current policy by specifying government acquisition is allowed only if applicant is not able to sell home after 120 days of marketing it at a price level deemed appropriate for its local market circumstances by the US Army Corps of Engineers, and therefore the applicant is in danger of foreclosure.
o Outcome: Prior HAP experience with government acquisition of homes has shown significant maintenance costs from acquired homes and resulted in reduced HAP resources being available to pay other applicant claims. Incentives have been built into the existing HAP program over time to favor private sales rather than government acquisition. Strengthening current policy discourages government purchase of homes and costly carrying expenses. It also allows HAP resources to go further and assist more applicants.
• Cap the Maximum Home Purchase Price as an eligibility threshold
o Current Policy: There is no maximum home value established for a beneficiary receiving a HAP benefit.
o Description of Change: Links the maximum cap to the 2009 Fannie Mae/Freddie Mac Conforming Loan Limits (as amended by the ARRA of 2009), which range from $417,000 to $729,750 (depending on county or Metropolitan Statistical Area). The 2009 Conforming Loan Limits would apply to all homes in the program from FY 2006 to FY 2012.
o Outcome: Prevents taxpayers from ‘bailing out' million-dollar homes, but is adjusted by region to account for cost variations.
4• Claims Processing
o For BRAC or PCS moves, the ARRA requires that home must have been purchased before July 1, 2006.
o For BRAC moves to be eligible, the property must be sold by September 30, 2012.
o For PCS claims to be eligible, the home sale must result from PCS orders issued on or before December 31, 2009, and the application must be recieved by March 31, 2010.
o Outcome: These policies are designed to ensure that regardless of when a claim arrives, there will be sufficient resources available for Wounded Warrior, wounded civilian, and Surviving Spouse claims, as well as for BRAC claims (most of which will occur in FY 2010 and FY 2011).
• Pay PCS claims for home sales resulting from PCS orders issued by December 31, 2009, or until available ARRA resources are depleted.
o Outcome: Uses allowable statutory authority under the ARRA to set an end date for the PCS portion of expansion program based on projections of when the available funding will be depleted. The PCS home sale deadline will be reviewed as initial claims are processed and can be extended, if resources allow, based on a close monitoring of claims payment history.

Here are the program sales price limits, based on Fannie Mae and Freddie Mac, for Eglin AFB, Hurlburt Field and the rest of the United States.
Also, read Major Jason Trew's letter to Congress regarding the HAP July 2006 cut-off date for assistance.

We expect more details to be forthcoming, check back on this blog. As always, consult an experienced real estate agent to help you with selling your PCS property.

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, Destin real estate agent, to list and sell your home or condo or help you buy a home or rental property 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.