HAP Relocation Blog

HAP Orders Reassignment Date

hapinformation — Mon, 27 Sep 2010 04:27:46 +0000

Homeowners Assistance Program Orders Reassignment period: September 30, 2010, is almost upon us. As I understand it, there has been no extension to this orders date as yet by OSD. Note that most originally believed that this meant the RNLT date had to be prior to September 30th. HAP has been accepting and not denying the applications as long as orders are “issued” by this date. Translated…many people transferring in 2011 were finding ways to get their orders issued earlier than usual in order to qualify.

Timing issue with orders- HAP has a policy that benefits can’t be processed until within 90 days of RNLT. Thus, September 2010 issued orders can only process benefits if RNLT is no later than December 2010. It appears those transferring in 2011 are still going to need an OSD policy change or legislative adjustment to program. The 90 days requirement is important to assure that a property is not sold and benefits paid on orders that cancel.

Problem on date extension- funding is limited and the program burns money quickly. The orders date has not been extended because various officials are not confident they have enough funds to cover members who transferred 2006-2010, let alone increase the pool of potential beneficiaries. There are two bills in Congress to add more money to the program. As it is an election year, it is hard to tell when the bills will be voted upon.

I know this is not popular news to share. Do take confidence that the program continues to change as finances and legal concerns allow. Hoping for good news the date has been extended soon!

HAP Realtor San Diego

hapinformation — Fri, 13 Aug 2010 07:22:50 +0000

San Diego HAP Realtor. Looking for a Realtor with HAP experience? Homeowners Assistance Program total sales closed by Denise Korpinen as listing Realtor is currently 13. I have also helped close 3 HAP referrals. These were divided into 10 Government Acquisitions and 6 Augmentation sales. I have 4 additional HAP listings in escrow and 6 more HAP Augmentations and Acquisitions on market or coming soon. Additionally, I offer help to HAP beneficiaries out of area by providing referral to qualified Realtors where there properties are located via Prudential Relocation and personal relationships. I then help the Realtor to navigate the HAP system. These numbers exclude numerous others assisted by information posted via MOAA and VR SAM blogs.

Homeowners Assistance Program sales can be completed rapidly when the Realtor involved knows the system. As a military beneficiary you and those on your “team” must know that HAP does not stay the same from day to day. The program has changed policy on closing costs regularly. Until July 21^st HAP paid closing costs up to 3% if usual and customary for a buyer. Now they do not. Some costs are still covered but must be itemized.

Beneficiaries beware- what your Realtor doesn’t know can cost you time and money. This is why I love to network! As a Marine wife and former Naval Reservist, you are my extended family. I want to ensure my fellow Realtors take care of our family. If your HAP processing seems to be stalled- give me a call. Maybe we can figure out how to give it a jump start!

Homeowners Assistance Program is the best thing to HAPpen for military members caught in the housing crisis. HAP continues to be streamlined and benefits processors are working hard to meet needs of the applicants! There are still some bumps in the road ahead, but if you and your team are diligent and responsive once the file moves to benefits, HAP will HAPpen for you!

HAP Sacramento Closing Costs August 12

hapinformation — Thu, 12 Aug 2010 23:05:49 +0000

CLOSING COSTS CREDITS & Sacramento:
HAP closing costs are like a never ending battle! HAP fact- it is all about the Lead HAP Sacramento Attorney and her opinion HAP should NOT to pay them. She claims it is illegal according to the ARRA legislation. Long and short of it is- if your HAP check request includes “closing credits” the funds will not be authorized by legal at this time. This came down July 21st. HAP Sacramento was authorizing up to 3% closing costs credits until that day.

HAP Sacramento will approve certain costs ITEM BY ITEM. You will want help from your Realtor and escrow officer to have this reflected properly on the HUD1 to receive HAP funds. Submit to HAP Benefits Processor for final review and confirmation.

*REMEMBER some additional restrictions may apply and subject to change. As of 8/11/10.

INELIGIBLE COSTS:
1 Mortgage Interest
2 Property taxes
3 Homeowner’s Association monthly fees
4 Costs attributable to operating (electric, water, cable) or repairs/maintenance
5 VA Funding fee
6 Finance charges (unless allowed below)
7 Home warranty for buyer

ELIGIBLE for reimbursement: typically 1 time fees associated with transfer
1 “Buyer Credit from Seller” ONLY as it includes allowable items below ITEMIZED on HUD1 (NOT as generic bulk credit as previously allowed)
2 Broker Fees in sale to final buyer as usual and customary for area
3 Mortgage and transfer taxes (HAP is transfer tax exempt in Acquisition from Military Seller to Government)
4 Homeowners Association transfer and document fees (1x)
5 State revenue and excise tax
6 Prepayment penalties
7 Title insurance and owners title policy (if required by lender)
8 Legally or Lender required Inspections or testing
9 Military Seller advertising and sales expenses
10 Legal and related costs (usually short sale/foreclosure)
11 Credit report fees
12 FHA or VA loan application fee
13 Loan origination fee 1 point or less
14 Some specific miscellaneous expenses for area (submit for review) Ex: Termite “report only

HAP Benefits processed as of 4/29/10

hapinformation — Tue, 04 May 2010 17:52:32 +0000

Homeowners Assistance Program- HAP claims now moving along more efficiently. It is still a process, but getting much better!
Total benefits to date: $156.0M

Benefits (cumulative):	Ordered Checks	Checks Mailed
Savannah District	42	686
Ft Worth District	77	18
Sacramento District	271	205
Total Checks		1,299

Type	USAF	Army	Navy	USMC	USCG	DoD	Total
PCS	517	204	300	138	93	0	1252
BRAC	2	4	1	1	1	1	10
WW/Ill	8	18	3	1	0	0	30
SSpouse	1	2	1	3	0	0	7
Total	528	228	305	143	94	1	1299
Percentage	40.6	17.6	23.5	11	7.2	.1

Information source: HAP D.C.

No HAP Final Rule- as of April 28

hapinformation — Thu, 29 Apr 2010 08:40:56 +0000

No Final rule…so, what is the “punishment” to the government for not following their own rule about publishing to the Federal Register? I have asked this question of everyone I can find to ask. The answer appears to be NOTHING. We continue to hope that the final rules will publish. Nothing yet…

HAP Benefits Processed as of 2/24/10

hapinformation — Sun, 28 Feb 2010 17:00:28 +0000

Homeowners Assistance Program benefit payment figures per Army Corps:
Applicants: Total: 7,043
* Savannah District: 4,280
* Ft. Worth District: 906
* Sacramento District: 1,857

Type	USAF	Army	Navy	USMC	USCG	DoD	Total
PCS	308	88	169	84	48	0	697
BRAC	2	4	1	1	1	1	10
WW/Ill	5	11	3	1	0	0	20
SSpouse	1	2	1	4	0	0	8
Total	316	105	174	90	49	1	735
Percentage	43.0	14.3	23.7	12.2	6.7	.1

Percentages of applicants paid benefits:

* PCS = 94.8%, WII/SS = 3.8%, BRAC = 1.4%,

Type of sale:
* Pvt Sale/AUGMENTATION= 625

*Govt ACQUISITION= 108 Foreclosure = 2

* Average cost of benefits paid per beneficiary: $107,111

HAP by the Numbers Dec 3rd

hapinformation — Sat, 05 Dec 2009 05:04:14 +0000

Total Claims $15.3 million
Benefits Paid (cumulative):
Savannah District: 121
Ft Worth District: 10
Sacramento District: 96
Total: 227

Claims paid by Member Category:
Wounded Warior- 6
Surviving Spouse- 6
BRAC- 0
PCS Members- 215
No “Government Acquisitions” for PCS members to date.

Source: Army Corps Contact D.C.

HAP Government Aquisition

hapinformation — Sat, 05 Dec 2009 04:23:05 +0000

HAP is still “not happening” when it comes to Government Acquisition for PCS Service Members…As a person, I try to stay very positive in life, and on behalf of my clients. This has become a true challenge when it comes to the Homeowner’s Assistance Program for Military Service Members. As a Veteran, Military Spouse, and Realtor- I see the program as great in concept with tremendous potential. I rejoice for the 227 beneficiaries paid to date through the “Government Reimbursement” aspect (as of 12/3/09). Unfortunately this is only one small part of the 4,700 applicants to date seeking relief.

My concern is for those who are in need of “Government Acquisition”. This is the majority of applicants. Each day not processed costs money for housing these folks do not have to spend. They need these funds to put food on the table, clothes on their children, and pay bills incurred while waiting for processing. These applicants would likely have used the ”Government Augmentation” aspect available in the original program. In that system, the government never actually had to “own” or inventory the property to pay off the mortgage- IF the Service Member found a Buyer for the property. Most of the people I work with would have fallen into this Augmentation category.

Due to law and rule changes under “Expanded HAP”, the member must now use the “Acquisition” aspect to cover 100% of the outstanding mortgage(s). Since the day after the Federal tax legislation passed (Nov 5th) processors at each district have been indicating, “The acquisition contract should arrive any day now”. I am networked with Service Members across the U.S. who have applications in with different districts. This has been a universal answer. Some were told they could close in 14-21 days from that conversation. Each day has passed with no contract. Translated- another day with no closing and no closure.

I have continuously sought to provide timely information about HAP and be a part of the solution to any challenges as able. Further investigation into the delay in issuing contracts indicates there are additional issues caused by “the government owning the property”…even just for a few minutes! Government ownership under HAP changes the type of deed issued and title policy. According to real estate law in most areas, usual local area and property specific disclosures are not legally required once owned by the government. This would save paperwork; but creates liability questions for the Service Member and the Buyers (as well as their Realtors) that must be addressed. Other old laws require the government to take certain actions once it owns the property. These actions being required will cost more time and more HAP money unnecessarily. The Legal Department at the Army Corps seems to need some help that has not yet come to sort it all out and develop the appropriate acquisition contract. It is a difficult situation for this department to be in. No pressure Legal- but the end to an extreme financial and emotional roller coaster for 4,000 or so Service Members currently resides in your hands. Service Members and associated professionals are all happy to call or write ANYONE you need us to in order to get you the counsel needed to move “Government Acquisition” out of limbo. Just tell us who to contact…!

Since the announcement of HAP as part of the Stimulus, I have had the pleasure of speaking to many wonderful people at Department of Defense (OSD), Army Corps Program Management, and Military Legal Assistance Offices. The entire processing team at Sacramento has been wonderful with my constant calls and questions. Everyone I have spoken to wants to see Service Members receive the relief and benefits Congress has voted into law. It is clear there is still substantial team effort needed to get HAP where it needs to go…from HAPless to it’s HAPpened!

DOD HAP Rules

hapinformation — Tue, 29 Sep 2009 22:29:38 +0000

Expanded Homeowners Assistance Program is finally ready to begin processing payments for military service member claims! Yes folks, it is true. The Department of Defense has decided service members should not have to wait any longer for financial assistance with the properties they own affected by the mortgage crisis. DOD tried to hold out for a fix to the tax issues. Unfortunately, the proposed “fix”- H.R. 3590 may be a while for approval given that Health Care has Washington’s complete attention. Truly hoping this will change before we get deep into processing claims. The “recovery” effort service members will have to undergo if their claims process before H.R. 3590 passes (presuming it will eventually pass and be retroactive), in addition to the extra processing on the part of Army Corps, DOD, IRS and State franchise tax boards is completely avoidable if swift action is taken by Congress. Write your representatives please!

The program currently best helps those who have a few dollars to contribute to close escrow, or those who still had a little equity. Federal and State tax liabilities withholding on HAP benefit may still keep many service members from being able to sell without “short sale” assistance. Time will tell how this will play out.

If you have applied for HAP, or are considering doing so you need to consult several sources- your Personnel Officer, a HAP knowledgable Realtor, Military Legal Assistance, and your Tax Advisor. Have questions? Concerns? Post them here and I’ll find you answers as soon as possible.