Tuesday, August 31, 2010
Monday, August 30, 2010
Friday, August 20, 2010
Thursday, August 19, 2010
Wednesday, August 18, 2010
Another example of Bureaucracy in Action
A New Orleans lawyer sought an FHA loan for a client. He was told the loan would be granted if he could prove satisfactory title to a parcel of property being offered as collateral. The title to the property dated back to 1803, which took the lawyer three months to track down. After sending the information to the FHA, he received the following reply.
(Actual reply from FHA):
"Upon review of your letter adjoining your client's loan application, we note that the request is supported by an Abstract of Title. While we compliment the able manner in which you have prepared and presented the application, we must point out that you have only cleared title to the proposed collateral property back to 1803. Before final approval can be accorded, it will be necessary to clear the title back to its origin."
Annoyed, the lawyer responded as follows:
(Actual response):
"Your letter regarding title in Case No.189156 has been received. I note that you wish to have title extended further than the 206 years covered by the present application. I was unaware that any educated person in this country, particularly those working in the property area, would not know that Louisiana was purchased by the United States from France in 1803, the year of origin identified in our application.
For the edification of uninformed FHA bureaucrats, the title to the land prior to U.S. ownership was obtained from France, which had acquired it by Right of Conquest from Spain . The land came into the possession of Spain by Right of Discovery made in the year 1492 by a sea captain named Christopher Columbus, who had been granted the privilege of seeking a new route to India by the Spanish monarch, Queen Isabella. The good Queen Isabella, being a pious woman and almost as careful about titles as the FHA, took the precaution of securing the blessing of the Pope before she sold her jewels to finance Columbus 's expedition. Now the Pope, as I'm sure you may know, is the emissary of Jesus Christ, the Son of God, and God, it is commonly accepted, created this world. Therefore, I believe it is safe to presume that God also made that part of the world called Louisiana. God, therefore, would be the owner of origin and His origins date back to before the beginning of time, the world as we know it, and the FHA. I hope you find God's original claim to be satisfactory. Now, may we have our damn loan?"
The loan was immediately approved.
These are the same geniuses charged with the Government mortgage bailout.
(Actual reply from FHA):
"Upon review of your letter adjoining your client's loan application, we note that the request is supported by an Abstract of Title. While we compliment the able manner in which you have prepared and presented the application, we must point out that you have only cleared title to the proposed collateral property back to 1803. Before final approval can be accorded, it will be necessary to clear the title back to its origin."
Annoyed, the lawyer responded as follows:
(Actual response):
"Your letter regarding title in Case No.189156 has been received. I note that you wish to have title extended further than the 206 years covered by the present application. I was unaware that any educated person in this country, particularly those working in the property area, would not know that Louisiana was purchased by the United States from France in 1803, the year of origin identified in our application.
For the edification of uninformed FHA bureaucrats, the title to the land prior to U.S. ownership was obtained from France, which had acquired it by Right of Conquest from Spain . The land came into the possession of Spain by Right of Discovery made in the year 1492 by a sea captain named Christopher Columbus, who had been granted the privilege of seeking a new route to India by the Spanish monarch, Queen Isabella. The good Queen Isabella, being a pious woman and almost as careful about titles as the FHA, took the precaution of securing the blessing of the Pope before she sold her jewels to finance Columbus 's expedition. Now the Pope, as I'm sure you may know, is the emissary of Jesus Christ, the Son of God, and God, it is commonly accepted, created this world. Therefore, I believe it is safe to presume that God also made that part of the world called Louisiana. God, therefore, would be the owner of origin and His origins date back to before the beginning of time, the world as we know it, and the FHA. I hope you find God's original claim to be satisfactory. Now, may we have our damn loan?"
The loan was immediately approved.
These are the same geniuses charged with the Government mortgage bailout.
Monday, August 16, 2010
Sunday, August 15, 2010
Monday, August 9, 2010
Friday, August 6, 2010
HAP PROGRAM FOR MILITARY MEMBERS
ANSWERS TO YOUR QUESTIONS ABOUT THE HAP PROGRAM
Q. What is “Expanded HAP”?
A. Congress created in the HAP program in 1966 (see Section 3374, Title 42 United States Code) to financially compensate eligible military and civilian Federal employee homeowners when the real estate market was adversely affected directly related to the closure or reduction-in-scope of operations due to Base Realignment and Closure (BRAC). The Army Corps of Engineers runs it on behalf of all the military branches. The American Recovery and Reinvestment Act of 2009 (ARRA), Public Law 111-5, expanded the HAP to provide assistance to:
* Wounded members of the Armed Forces (30% or greater disability) and wounded Department of Defense (DoD) and Coast Guard civilian homeowners reassigned in furtherance of medical treatment or rehabilitation or due to medical retirement in connection with their disability;
* Surviving spouses of the fallen
* Base Realignment and Closure (BRAC) 2005 impacted homeowners relocating during the mortgage crisis; and
* Service member homeowners undergoing Permanent Change of Station (PCS) moves during the mortgage crisis.
Q. How Do I Apply?
A. Visit the HAP web site: http://hap.usace.army.mil/ and download the application package. Complete the application and mail to the U.S. Army Corps of Engineer District responsible for the area in which your home is located.
Q. Will the Application Packages Be Handled on a First-Come First-Served Manner?
A. Applications will be processed as quickly as possible according to eligibility in the following order:
1. Wounded, Injured, and Ill. Within this category, applications will generally be processed in chronological order of the wound, injury, or illness.
2. Surviving Spouses. Within this category, applications will generally be processed in chronological order of the date of death of the member or employee.
3. BRAC 2005 Members and Civilian Employees. Within this category, applications will generally be processed in chronological order of the date of job elimination.
4. Permanently Reassigned Members of the Armed Forces. Within this category, applications will generally be processed beginning with the earliest report-not-later-than date of PCS orders.
Q. If I am eligible, what should I do after I mail in my completed application?
A. Each individual’s situation is unique. Contact the CoE District office where your home is located for assistance.
Q. What rights do I have if I am not satisfied with decisions made regarding Expanded HAP?
A. You have the right to appeal any decision denying benefits or contesting the amount of benefits allowed. No particular format is required. Simply submit a written statement of your objections to the district office. The appeal will be reviewed at the district level. If favorable action cannot be taken, your appeal will be submitted to higher headquarters. If a favorable decision cannot be made at this level, a final decision will be made by the Deputy Under Secretary of Defense (Installations and Environment).
Q: Who is eligible for Expanded HAP assistance?
A. ARRA Expanded HAP applies to certain:
1. Wounded, Injured, or Ill service members and DoD (including Coast Guard) civilian employees
2. The surviving spouse of a member of the Armed Forces or of a civilian employee whose spouse dies as the result of a wound, injury, or illness incurred in the line of duty
3. Base Realignment and Closure 2005 impacted service members and civilians
4. Permanent Change of Station (PCS) servicemembers
Q. What are the specific eligibility requirements for Wounded, Injured, or Ill?
A. For members of the Armed Forces – Those who receive a disability rating of 30% or more for an unfitting condition (using the Department of Veterans Affairs Schedule for Ratings Disabilities), or who are eligible for Service member’s Group Life Insurance Traumatic Injury Protection Program, or whose treating physician (in a grade of at least captain in the Navy or Coast Guard or colonel in Army or Air Force) certifies that the member is likely, by a preponderance of the evidence, to receive a disability rating of 30% or more for an unfitting condition (using the Department of Veterans Affairs Schedule for Ratings Disabilities) for wounds, injuries, or illness incurred in the line of duty while deployed, on or after September 11, 2001.
For Civilian Employees of DoD (including employees of non-appropriated fund instrumentalities) or the United States Coast Guard who suffer a wound, injury, or illness (not due to own misconduct), on or after September 11, 2001, in the performance of duties while forward deployed in support of the Armed Forces, whose treating physician provides written documentation that the member, by a preponderance of the evidence, meets the criteria for a disability rating of 30% or more (this documentation will be certified by a physician in the grade of at least captain in the Navy or Coast Guard or colonel in Army or Air Force).
For both military and civilian applicants there must be a need to relocate from the primary residence in furtherance of medical treatment, rehabilitation, or due to medical retirement resulting from the wound, injury, or illness, and a need to market the primary residence for sale due to the wound, injury or illness. (For example, the need to be closer to a hospital or a family member caregiver or the need to find work more accommodating to the disability.)
Q. What are the specific eligibility requirements for a Surviving Spouse?
A. The surviving spouse of a Service member or of a civilian employee whose spouse dies as the result of a wound, injury, or illness incurred in the line of duty while deployed (or forward deployed for civilian employees) on or after September 11, 2001, and who relocate from the member’s or civilian employee’s primary residence within two years of the death of spouse.
Q. What are the specific eligibility requirements for Base Realignment and Closure (BRAC) 2005?
A. BRAC 2005 applies to members of the Armed Forces and civilian employees of the Department of Defense and the United States Coast Guard (not including temporary employees or contractors) and employees of non-appropriated fund instrumentalities who: — purchased their primary residence before May 13, 2005 (the date of the BRAC 2005 announcement). — were assigned on May 13, 2005, to an installation or unit identified for closure or realignment under the 2005 round of the BRAC Act of 1990: — whose position is eliminated or transferred because of the realignment or closure and accepts employment, or is required to relocate because of transfer, beyond the normal commuting distance from the primary residence (50 miles) — suffered at least a 10% home value loss between July 1, 2006 and date of application for Expanded HAP benefits for the county/parish/city in which the primary residence is located, and a decline of at least a 10% personal home value loss from the date of purchase to date of sale.
Q. What are the specific eligibility requirements for Permanent Change of Station (PCS)?
A. PCS refers to the assignment or transfer of a member to a different permanent duty station (PDS), to include relocation to place of retirement, under a competent authorization/order that does not specify the duty as temporary, provide for further assignment to a new PDS, or direct the military service member return to the old PDS.
To qualify, a service member must have:
* owned home prior to July 1, 2006.
* have PCS orders dated between February 1, 2006 and September 30, 2010
* be reassigned to a new duty station or home port outside a 50-mile radius of the member’s former duty station or home port. The orders must specify a report-no-later-than date of on or before February 28, 2010. These dates may be extended to September 30, 2012 at the discretion of the DUSD(I&E) based on availability of funds.
* suffered at least a 10% home value loss between July 1, 2006 and date of application for Expanded HAP benefits for the county/parish/city in which the primary residence is located, and
* 10% decline of personal home value loss from the date of purchase to date of sale.
Q. Would a federal civilian employee who chooses to PCS for a higher paying job qualify for the program?
A. No. Simply moving for a better job would not meet the current qualifications of the Expanded HAP. As a federal civilian employee, you would only qualify for the Expanded HAP if you were assigned to a BRAC organization or installation and your position was moving or being eliminated.
Q. Will individuals assigned to an installation after the announced BRAC action be eligible for HAP benefits if they purchased their homes after the closure/realignment announcement?
A. On May 13, 2005, BRAC 2005 Members and Civilian Employees must have been assigned to an installation or unit identified for closure or realignment under the 2005 round of the Base Realignment and Closure Act of 1990. Applicant must also have been the owner/occupant at the time of the announcement date. However, military members may be eligible if they qualify for the PCS benefit and purchased the home prior to July 1, 2006. Contact the CoE district where the home is located for further information.
Q. Is a service member or federal employee who is not attached to the installation eligible for HAP benefits?
A. No. Any service member or federal employee (including Non-Appropriated Fund employees) must be assigned to or employed in connection with an installation at the time of public announcement (May 13, 2005) of the closure action to be eligible.
Q. If a BRAC 2005 impacted civilian is RIF’d with no job offer, can he/she qualify for HAP benefits?
A. Yes under certain circumstances. Contact the CoE district where the home is located for further information.
Q. Is there a cap on the benefits the Expanded HAP will pay per applicant?
A. The Primary Fair Market Value (PFMV) may not exceed an amount equal to the 2009 Fannie Mae/Freddie Mac conforming loan limits (as amended by the ARRA of 2009). These conforming loan limits range from $417,000 to $729,500. These apply for the duration of the Expanded HAP and are established for each city/county/parish as appropriate.
Q. If I retire do I qualify for HAP benefits?
A. If you are a BRAC 2005 eligible applicant you would qualify only if your position is moved or eliminated. Permanently Reassigned Members of the Armed Forces (PCS) who are reassigned or who otherwise relocate for the following reasons are NOT eligible for Expanded HAP benefits:
1. Members who retire prior to reaching their mandatory retirement date,
2. Members who are a new accession into the Armed Forces or who are otherwise entering active duty.
3. Members who are voluntarily separated or discharged,
4. Members whose separation or discharge is characterized as less than honorable,
5. Members who request and receive voluntary release from active duty (REFRAD),
6. Members who are REFRAD for misconduct or poor performance.
Q. If a person owns a farm (say 60 acres) and maintains a home on the farm, how much of the property qualifies under the HAP?
A. Only the dwelling and the portion of the land that would reasonably constitute a residential property within the area.
Q. What is the basis for HAP benefits?
A. HAP benefits are based on the prior fair market value (PFMV) of the applicant’s home. For Expanded HAP, the PFMV is the home’s purchase price (verified by Form HUD-1 settlement sheet from your purchase) and the eventual sales price when you sell the home.
Q. How long before I will receive my benefits?
A. The normal processing time is between 60 and 90 days provided all required documents are submitted.
Q. If I have to sell my home at a loss and I qualify for the Expanded HAP program, will I be able to recoup 100 percent of my loss?
A. No, but it can substantially offset your losses. Each individual’s situation is unique. Contact the CoE District office where your home is located for assistance.
Q. Will my Expanded HAP benefits be taxable?
A. No. President Obama signed HR 3548, Unemployment Compensation Extension Act of 2009 into law and thereby exempted Expanded HAP benefit payments from taxation. Payments to military members are not subject to social security or Medicare taxes.
Tax documents will be certified by the HQUSACE Finance Center, and distributed to applicants and the Internal Revenue Service (IRS) on an annual basis.
Q. If I am foreclosed upon, what will the government pay or not pay?
A. The government will pay all legally enforceable liabilities; but will not make up past payments. If you deed the property back to the mortgage company in lieu of foreclosure, your application will be processed as a private sale. The Government will not pay outstanding judgment liens, encumbrances of a personal nature, or junior mortgages acquired after acquiring the property unless the junior mortgage was obtained at the same time as the original mortgage or used to improve the property.
Q. Who pays the closing costs when the government purchases a home under the Expanded HAP?
A. The Government will pay for title services to close the transaction, and any other allowable closing costs.
Q. For VA loans, will the Government retire or assume my mortgage so eligibility can be restored?
A. The Government will either liquidate or assume VA mortgages on residential properties. An applicant must request restoration of his/her eligibility from the V A.
Q. In a private sale, can I use a realtor to sell my home?
A. Yes. Using a realtor may increase your chances to find a buyer. The Expanded HAP will pay all normal sellers’ closing costs, including realtor fees.
Q. A real estate agent expects a commission. Will the Government pay commissions when the Government purchases an applicant’s home?
A. No. Applicants should ensure that the listing agreement for their property contains the following statement: “In the event the herein listed property is sold to the United States of America, or an agency thereof, the listing broker will not be entitled to any commission or other consideration as a result of such sale.” If the listing agreement does not contain the above statement and any commission is due, it is the applicant’s responsibility to pay the commission.
Q. Will I have to bring any money to closing?
A. If you occupy your home until or nearly until the closing date and have not made payment for the month, you will be responsible for interest due for the previous month plus year-to-date real estate taxes.
Q. At what point should I market my home?
A. As soon as you know you will be relocating. Two eligibility requirements for the program are 1) the applicant must have made a reasonable effort to sell the home, and 2) relocated beyond a reasonable commuting distance. However, in some instances, an applicant may be eligible without relocating, provided they lost their job due to a base closure or realignment and demonstrate a financial hardship.
Q. What constitutes a reasonable effort to sell my home?
A. Your primary residence must be listed, actively marketed, and available for purchase for a minimum of 120 days. With regard to marketing, up must demonstrate that the asking price was within the current market value of the home as determined by the CoE automated value model (AVM) for no less than 30 days. It is your responsibility to explain marketing efforts by detailing how the asking price was gradually reduced until it reached the true current fair market value (i.e., maintaining a log containing date and asking price recorded over period of time indicating number of visits by prospective buyers and offers to purchase). If you are unable to sell the primary residence, the CoE will determine whether efforts to sell were reasonable.
Q. Will local appraisers have input into appraised values?
A. Home appraisals for Expanded HAP are prepared by an independent contract Automated Valuation Model company. Local appraisers may have input if the applicant chooses to appeal the decision for eligibility and wishes to purchase an appraisal.
Q. If I rent my house before I sell it, will it impact HAP benefits?
A. No. Rental income is not deducted from benefit payments.
Q. Is there any information I should include in the lease regarding the Expanded HAP?
A. Make certain the lease agreement contains the following clause: “If the leased premises are approved for purchase by the United States of America under the Homeowners Assistance Program, pursuant to P.L. 89-754 and P.L. 111-5, the Lessor shall have the right to terminate this lease by providing to the Lessee either a 30 or 60-day written notice to vacate the premises.”
Q. I had a contract to purchase my home prior to July 1, 2006, but closed after that date, do I qualify?
A. If you are a Military PCS eligible applicant and were under contract to purchase prior to 1 July 2006 and closed after that date, you would qualify. For applicants eligible as Wounded, Injured or Ill and Surviving Spouses the requirement to purchase the primary residence prior to July 1, 2006 does not apply.
For more information, check out http://hap.usace.army.mil/
Posted in homeowner | Tagged real estate, distressed property, Lisa Patton, Woodbridge, Northern Virginia, Prince William County, Fort Belvoir, BRAC, HAP, Homeowners Assistance Program, DoD | Leave a comment
News You Can Use – A Holiday in August?
Q. What is “Expanded HAP”?
A. Congress created in the HAP program in 1966 (see Section 3374, Title 42 United States Code) to financially compensate eligible military and civilian Federal employee homeowners when the real estate market was adversely affected directly related to the closure or reduction-in-scope of operations due to Base Realignment and Closure (BRAC). The Army Corps of Engineers runs it on behalf of all the military branches. The American Recovery and Reinvestment Act of 2009 (ARRA), Public Law 111-5, expanded the HAP to provide assistance to:
* Wounded members of the Armed Forces (30% or greater disability) and wounded Department of Defense (DoD) and Coast Guard civilian homeowners reassigned in furtherance of medical treatment or rehabilitation or due to medical retirement in connection with their disability;
* Surviving spouses of the fallen
* Base Realignment and Closure (BRAC) 2005 impacted homeowners relocating during the mortgage crisis; and
* Service member homeowners undergoing Permanent Change of Station (PCS) moves during the mortgage crisis.
Q. How Do I Apply?
A. Visit the HAP web site: http://hap.usace.army.mil/ and download the application package. Complete the application and mail to the U.S. Army Corps of Engineer District responsible for the area in which your home is located.
Q. Will the Application Packages Be Handled on a First-Come First-Served Manner?
A. Applications will be processed as quickly as possible according to eligibility in the following order:
1. Wounded, Injured, and Ill. Within this category, applications will generally be processed in chronological order of the wound, injury, or illness.
2. Surviving Spouses. Within this category, applications will generally be processed in chronological order of the date of death of the member or employee.
3. BRAC 2005 Members and Civilian Employees. Within this category, applications will generally be processed in chronological order of the date of job elimination.
4. Permanently Reassigned Members of the Armed Forces. Within this category, applications will generally be processed beginning with the earliest report-not-later-than date of PCS orders.
Q. If I am eligible, what should I do after I mail in my completed application?
A. Each individual’s situation is unique. Contact the CoE District office where your home is located for assistance.
Q. What rights do I have if I am not satisfied with decisions made regarding Expanded HAP?
A. You have the right to appeal any decision denying benefits or contesting the amount of benefits allowed. No particular format is required. Simply submit a written statement of your objections to the district office. The appeal will be reviewed at the district level. If favorable action cannot be taken, your appeal will be submitted to higher headquarters. If a favorable decision cannot be made at this level, a final decision will be made by the Deputy Under Secretary of Defense (Installations and Environment).
Q: Who is eligible for Expanded HAP assistance?
A. ARRA Expanded HAP applies to certain:
1. Wounded, Injured, or Ill service members and DoD (including Coast Guard) civilian employees
2. The surviving spouse of a member of the Armed Forces or of a civilian employee whose spouse dies as the result of a wound, injury, or illness incurred in the line of duty
3. Base Realignment and Closure 2005 impacted service members and civilians
4. Permanent Change of Station (PCS) servicemembers
Q. What are the specific eligibility requirements for Wounded, Injured, or Ill?
A. For members of the Armed Forces – Those who receive a disability rating of 30% or more for an unfitting condition (using the Department of Veterans Affairs Schedule for Ratings Disabilities), or who are eligible for Service member’s Group Life Insurance Traumatic Injury Protection Program, or whose treating physician (in a grade of at least captain in the Navy or Coast Guard or colonel in Army or Air Force) certifies that the member is likely, by a preponderance of the evidence, to receive a disability rating of 30% or more for an unfitting condition (using the Department of Veterans Affairs Schedule for Ratings Disabilities) for wounds, injuries, or illness incurred in the line of duty while deployed, on or after September 11, 2001.
For Civilian Employees of DoD (including employees of non-appropriated fund instrumentalities) or the United States Coast Guard who suffer a wound, injury, or illness (not due to own misconduct), on or after September 11, 2001, in the performance of duties while forward deployed in support of the Armed Forces, whose treating physician provides written documentation that the member, by a preponderance of the evidence, meets the criteria for a disability rating of 30% or more (this documentation will be certified by a physician in the grade of at least captain in the Navy or Coast Guard or colonel in Army or Air Force).
For both military and civilian applicants there must be a need to relocate from the primary residence in furtherance of medical treatment, rehabilitation, or due to medical retirement resulting from the wound, injury, or illness, and a need to market the primary residence for sale due to the wound, injury or illness. (For example, the need to be closer to a hospital or a family member caregiver or the need to find work more accommodating to the disability.)
Q. What are the specific eligibility requirements for a Surviving Spouse?
A. The surviving spouse of a Service member or of a civilian employee whose spouse dies as the result of a wound, injury, or illness incurred in the line of duty while deployed (or forward deployed for civilian employees) on or after September 11, 2001, and who relocate from the member’s or civilian employee’s primary residence within two years of the death of spouse.
Q. What are the specific eligibility requirements for Base Realignment and Closure (BRAC) 2005?
A. BRAC 2005 applies to members of the Armed Forces and civilian employees of the Department of Defense and the United States Coast Guard (not including temporary employees or contractors) and employees of non-appropriated fund instrumentalities who: — purchased their primary residence before May 13, 2005 (the date of the BRAC 2005 announcement). — were assigned on May 13, 2005, to an installation or unit identified for closure or realignment under the 2005 round of the BRAC Act of 1990: — whose position is eliminated or transferred because of the realignment or closure and accepts employment, or is required to relocate because of transfer, beyond the normal commuting distance from the primary residence (50 miles) — suffered at least a 10% home value loss between July 1, 2006 and date of application for Expanded HAP benefits for the county/parish/city in which the primary residence is located, and a decline of at least a 10% personal home value loss from the date of purchase to date of sale.
Q. What are the specific eligibility requirements for Permanent Change of Station (PCS)?
A. PCS refers to the assignment or transfer of a member to a different permanent duty station (PDS), to include relocation to place of retirement, under a competent authorization/order that does not specify the duty as temporary, provide for further assignment to a new PDS, or direct the military service member return to the old PDS.
To qualify, a service member must have:
* owned home prior to July 1, 2006.
* have PCS orders dated between February 1, 2006 and September 30, 2010
* be reassigned to a new duty station or home port outside a 50-mile radius of the member’s former duty station or home port. The orders must specify a report-no-later-than date of on or before February 28, 2010. These dates may be extended to September 30, 2012 at the discretion of the DUSD(I&E) based on availability of funds.
* suffered at least a 10% home value loss between July 1, 2006 and date of application for Expanded HAP benefits for the county/parish/city in which the primary residence is located, and
* 10% decline of personal home value loss from the date of purchase to date of sale.
Q. Would a federal civilian employee who chooses to PCS for a higher paying job qualify for the program?
A. No. Simply moving for a better job would not meet the current qualifications of the Expanded HAP. As a federal civilian employee, you would only qualify for the Expanded HAP if you were assigned to a BRAC organization or installation and your position was moving or being eliminated.
Q. Will individuals assigned to an installation after the announced BRAC action be eligible for HAP benefits if they purchased their homes after the closure/realignment announcement?
A. On May 13, 2005, BRAC 2005 Members and Civilian Employees must have been assigned to an installation or unit identified for closure or realignment under the 2005 round of the Base Realignment and Closure Act of 1990. Applicant must also have been the owner/occupant at the time of the announcement date. However, military members may be eligible if they qualify for the PCS benefit and purchased the home prior to July 1, 2006. Contact the CoE district where the home is located for further information.
Q. Is a service member or federal employee who is not attached to the installation eligible for HAP benefits?
A. No. Any service member or federal employee (including Non-Appropriated Fund employees) must be assigned to or employed in connection with an installation at the time of public announcement (May 13, 2005) of the closure action to be eligible.
Q. If a BRAC 2005 impacted civilian is RIF’d with no job offer, can he/she qualify for HAP benefits?
A. Yes under certain circumstances. Contact the CoE district where the home is located for further information.
Q. Is there a cap on the benefits the Expanded HAP will pay per applicant?
A. The Primary Fair Market Value (PFMV) may not exceed an amount equal to the 2009 Fannie Mae/Freddie Mac conforming loan limits (as amended by the ARRA of 2009). These conforming loan limits range from $417,000 to $729,500. These apply for the duration of the Expanded HAP and are established for each city/county/parish as appropriate.
Q. If I retire do I qualify for HAP benefits?
A. If you are a BRAC 2005 eligible applicant you would qualify only if your position is moved or eliminated. Permanently Reassigned Members of the Armed Forces (PCS) who are reassigned or who otherwise relocate for the following reasons are NOT eligible for Expanded HAP benefits:
1. Members who retire prior to reaching their mandatory retirement date,
2. Members who are a new accession into the Armed Forces or who are otherwise entering active duty.
3. Members who are voluntarily separated or discharged,
4. Members whose separation or discharge is characterized as less than honorable,
5. Members who request and receive voluntary release from active duty (REFRAD),
6. Members who are REFRAD for misconduct or poor performance.
Q. If a person owns a farm (say 60 acres) and maintains a home on the farm, how much of the property qualifies under the HAP?
A. Only the dwelling and the portion of the land that would reasonably constitute a residential property within the area.
Q. What is the basis for HAP benefits?
A. HAP benefits are based on the prior fair market value (PFMV) of the applicant’s home. For Expanded HAP, the PFMV is the home’s purchase price (verified by Form HUD-1 settlement sheet from your purchase) and the eventual sales price when you sell the home.
Q. How long before I will receive my benefits?
A. The normal processing time is between 60 and 90 days provided all required documents are submitted.
Q. If I have to sell my home at a loss and I qualify for the Expanded HAP program, will I be able to recoup 100 percent of my loss?
A. No, but it can substantially offset your losses. Each individual’s situation is unique. Contact the CoE District office where your home is located for assistance.
Q. Will my Expanded HAP benefits be taxable?
A. No. President Obama signed HR 3548, Unemployment Compensation Extension Act of 2009 into law and thereby exempted Expanded HAP benefit payments from taxation. Payments to military members are not subject to social security or Medicare taxes.
Tax documents will be certified by the HQUSACE Finance Center, and distributed to applicants and the Internal Revenue Service (IRS) on an annual basis.
Q. If I am foreclosed upon, what will the government pay or not pay?
A. The government will pay all legally enforceable liabilities; but will not make up past payments. If you deed the property back to the mortgage company in lieu of foreclosure, your application will be processed as a private sale. The Government will not pay outstanding judgment liens, encumbrances of a personal nature, or junior mortgages acquired after acquiring the property unless the junior mortgage was obtained at the same time as the original mortgage or used to improve the property.
Q. Who pays the closing costs when the government purchases a home under the Expanded HAP?
A. The Government will pay for title services to close the transaction, and any other allowable closing costs.
Q. For VA loans, will the Government retire or assume my mortgage so eligibility can be restored?
A. The Government will either liquidate or assume VA mortgages on residential properties. An applicant must request restoration of his/her eligibility from the V A.
Q. In a private sale, can I use a realtor to sell my home?
A. Yes. Using a realtor may increase your chances to find a buyer. The Expanded HAP will pay all normal sellers’ closing costs, including realtor fees.
Q. A real estate agent expects a commission. Will the Government pay commissions when the Government purchases an applicant’s home?
A. No. Applicants should ensure that the listing agreement for their property contains the following statement: “In the event the herein listed property is sold to the United States of America, or an agency thereof, the listing broker will not be entitled to any commission or other consideration as a result of such sale.” If the listing agreement does not contain the above statement and any commission is due, it is the applicant’s responsibility to pay the commission.
Q. Will I have to bring any money to closing?
A. If you occupy your home until or nearly until the closing date and have not made payment for the month, you will be responsible for interest due for the previous month plus year-to-date real estate taxes.
Q. At what point should I market my home?
A. As soon as you know you will be relocating. Two eligibility requirements for the program are 1) the applicant must have made a reasonable effort to sell the home, and 2) relocated beyond a reasonable commuting distance. However, in some instances, an applicant may be eligible without relocating, provided they lost their job due to a base closure or realignment and demonstrate a financial hardship.
Q. What constitutes a reasonable effort to sell my home?
A. Your primary residence must be listed, actively marketed, and available for purchase for a minimum of 120 days. With regard to marketing, up must demonstrate that the asking price was within the current market value of the home as determined by the CoE automated value model (AVM) for no less than 30 days. It is your responsibility to explain marketing efforts by detailing how the asking price was gradually reduced until it reached the true current fair market value (i.e., maintaining a log containing date and asking price recorded over period of time indicating number of visits by prospective buyers and offers to purchase). If you are unable to sell the primary residence, the CoE will determine whether efforts to sell were reasonable.
Q. Will local appraisers have input into appraised values?
A. Home appraisals for Expanded HAP are prepared by an independent contract Automated Valuation Model company. Local appraisers may have input if the applicant chooses to appeal the decision for eligibility and wishes to purchase an appraisal.
Q. If I rent my house before I sell it, will it impact HAP benefits?
A. No. Rental income is not deducted from benefit payments.
Q. Is there any information I should include in the lease regarding the Expanded HAP?
A. Make certain the lease agreement contains the following clause: “If the leased premises are approved for purchase by the United States of America under the Homeowners Assistance Program, pursuant to P.L. 89-754 and P.L. 111-5, the Lessor shall have the right to terminate this lease by providing to the Lessee either a 30 or 60-day written notice to vacate the premises.”
Q. I had a contract to purchase my home prior to July 1, 2006, but closed after that date, do I qualify?
A. If you are a Military PCS eligible applicant and were under contract to purchase prior to 1 July 2006 and closed after that date, you would qualify. For applicants eligible as Wounded, Injured or Ill and Surviving Spouses the requirement to purchase the primary residence prior to July 1, 2006 does not apply.
For more information, check out http://hap.usace.army.mil/
Posted in homeowner | Tagged real estate, distressed property, Lisa Patton, Woodbridge, Northern Virginia, Prince William County, Fort Belvoir, BRAC, HAP, Homeowners Assistance Program, DoD | Leave a comment
News You Can Use – A Holiday in August?
Wednesday, August 4, 2010
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