Homeowners Assistance Program expands

  • Published
ELMENDORF AIR FORCE BASE, Alaska --  The Homeowner's Assistance Program was expanded by the American Recovery and Reinvestment Act of 2009. The Demonstration Cities and Metropolitan Development Act was modified to provide temporary expansion of HAP to respond to the mortgage foreclosure and credit crisis. A total of $555 million in appropriated funds were provided to finance this expansion.

How HAP assists members of the Armed Forces:

HAP provides assistance in four ways. For eligible applicants, the government may:

1. Reimburse you for part of your loss from selling your home.

2. Assist you, if you don't have funds from the sale of your home to pay-off your mortgage.

3. Purchase your home by paying off the mortgage.

4. Help, if you default on your mortgage.

For more details, visit http://hap.usace.army.mil/homepage.html. Members are encouraged to visit this U.S. Army Corps of Engineer Web site for HAP and apply in advance of final program details. This Web site provides specifics on the expanded program, application, points of contact, FAQs and a link to the legislation.

The benefits of the program are:

Private Sale: Eligible applicants may be compensated for the difference between 95 percent 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.

Government Purchase: An eligible applicant may elect to sell the property to the government and receive, as the purchase price, an amount not to exceed 75 percent of the appraised fair market value prior to the date of the announcement, or the current total amount of outstanding mortgages, whichever is greater.

Foreclosure Assistance: 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. (Courtesy of the 3rd Civil Engineer Squadron Housing Office)