If you are an Eglin Air Force Base, Hurlburt Field or Whiting Field airman, have PCS orders and need to sell your home, you may have heard of HAP. HAP is the Department of Defense’s Homeowner Assistance Program. The program was expanded to help PCSing service members sell their properties, when “upside down” in mortgage value. For example, you owe $250,000 on your mortgage, but your Navarre Florida home is only worth $150,000. If you qualify, HAP may pay your entire shortfall at closing when you find a buyer. This is a wonderful program that can help you avoid foreclosure, short sale or VA Compromise Sale on your Navarre, Crestview, Niceville or Destin Florida area home.
Here is an overview of HAP Steps and Mortgage Qualifications:
- Your current mortgage balance must be 90% of your Prior Fair Market Value (PFMV). PFMV is your original purchase price plus any capital improvements you can substantiate.
- If you refinanced your loan after purchase, HAP will only cover the original loan amount. So if your refinanced mortgage amount (or equity line) is higher than your initial loan, you can submit home improvement receipts that add up to the difference. If they don’t add up to the difference – you would have to pay the excess amount yourself.
- You apply for HAP.
- You list your Navarre, Crestview, Freeport, Niceville or Fort Walton Beach area home with a Realtor specializing in HAP (can be done simultaneously with HAP application).
- We find a buyer for your home who pays fair market value with reasonable closing costs.
- You submit the purchase and sale contract, with a market analysis to HAP.
- Your file is assigned to a HAP Benefits Realty Specialist. The Specialist will gather any necessary documents from you, such as Applicant Date Request Sheet, buyer pre-approval, property survey, Mechanic’s Lien Affidavit, and Election of Benefits letter. The contract purchase price will be reviewed to ensure it is for fair market value.
- Your Benefits Realty Specialist will then request the loan payoff amount from your mortgage company.
- Once you are approved, HAP will send you an Offer Letter. When you sign it, HAP will proceed to order title work on your property. HAP has its own title company, and your buyer may choose any title company he wants.
- The U.S. will then write a substitute contract between the buyer we found and the U.S. HAP states they will “pay any agreed to Buyers closing costs and Realtor commissions, given that they are at a standard and customary rate. HAP does not cover home warranties. Any repairs requested from the Buyer during the inspection will be the responsibility of the Applicant and will need to be taken care of within the time frame agreed to on the original contract between the Applicant and Buyer. Any personal property items agreed to remain with the property will be included in the new sales contract. The Applicant is responsible to provide these agreed to items and ensure that are conveyed with the property at closing.”
10. The final signed copy of the replacement contract will be sent out to you, the buyer, Realtors, and title agent.
11. Your HAP closing documents will be express mailed to you. You will have to sign, date and get your documents notarized as required. If there are any outstanding monetary amounts due from you, such as mortgage interest, or loan not covered by HAP, you will need to include a certified check with your closing package.
12. Your buyer will close the same date directly with the U.S.
13. Congratulations – your Crestview, Navarre, Niceville or Destin home is sold and your mortgage is paid off!
If you are an Eglin or Hurlburt airman, and need to take advantage of HAP, apply soon. Funding is limited. Contact Wendy Rulnick for a HAP program overview and move “on”!
Wendy Rulnick, Broker, Rulnick Realty, Inc.
Call toll-free 1-877-ITS-WNDY (1-877-487-9639) or local 850-650-7883 ext 204
Email Wendy: [email protected]