HAP and the Fort Meade home owner

Being in the military or government service has it's unique rewards and challenges.  One of them being the need to move every 2 - 5 years.  So what happens when you invest in Fort Meade real estate and then are transferred (sometimes with very short notice) to another duty station via PCS orders and are caught with a home value that is less than when you purchased?

We're seeing many home owners in the area opting to rent their homes and ride out current market conditions with the hopes that they can break even or make a profit in a few years.   In addition to renting, we have been seeing a lot more short sale activity in the Anne Arundel county real estate market (more on that in another blog), but now it appears that we have a third option open to Fort Meade homeowners. 

The HAP (homeowners assistance program) which has been expanded to cover "service member homeowners permanently reassigned during the home mortgage crisis" or basicall anyone with PCS orders and a real estate market that has declined in value".

Basic eligibility requirements are:

• Military personnel only
•  PCS orders dated between 2/1/2006 and 9/30/2010 *
• Must have purchased your home prior to 2/1/2006
• County home values must have declined at least 10%
• Your homes' value must have declined at least 10%
• You may only received benefits once under this program
• You must move at least 50 miles from  your current home
• You must sell your home after 07/01/2006
   

If you qualify the benefit pays up to 90% of your purchase price as outlined below:

$200,000     Purchase price
$180,000     90% of purchase price
$150,000     Home sale price
$130,000     Mortgage pay off amount
$  30,000     Basic HAP benefit (total of 90% of purchase value less home sale price)
$  10,500     HAP reimbursement of closing costs (7% of sales price)
$  50,000     Cash after mortgage pay off
$  60,500     reimbursement to military applicant
$  - 0 -          Tax liability to military member

If you are not able to sell your home within 120 days and you are approved for the program applicants are eligible to receive the greater of 75% of the purchase price or mortgage pay off.

*  HAP will not reimburse or pay-off second mortgages, including equity lines of credit unless obtained when home purchased, or fund were used to improve home.

This program could be of great benefit to families who own real estate  in the Fort Meade area.  If you are thinking of selling your home and want to take advantage of this program you will need a Realtor who can work with you to document values and other information needed to process your application.   Contact us today for additional information on the program and how to apply.

* subect to availability of funds.