hurlburt hap pcs - Rulnick Realty

Eglin HAP PCS? Save Your Receipts or Lose Out

Wendy Rulnick — Fri, 06 Jul 2012 20:30:38 +0000

I was dismayed the other day when I found out a Niceville Florida short sale seller could have used HAP (Homeowner Assistance Program) to sell his home, but did not. Now, due to the reduced value of his property, and military PCS move, he has no choice to avoid foreclosure, but to short sale.

Why? He qualified in every way: PCSd prior to September 2010, moved to a base more than 50 miles from Eglin Air Force Base, his property value had declined more than 10% and he had purchased his home prior to July 2006.

Why can’t he use HAP? He refinanced his home for more than the original purchase price with the express purpose of investing in property improvements. Normally, this might be covered by HAP, but not for this Niceville seller. He did not save any receipts for improvements. He paid for items with cash. In this case, HAP will only cover the original mortgage amount. To compound the problem, when he ran into financial difficulty, this Eglin AFB airman stopped paying his mortgage for several months (HAP will only cover “current” mortgage balances). Since he does not have the funds to pay the portion of the mortgage which far exceeds his original mortgage, or to pay past due mortgage payments, he is stuck with a short sale. Yes, short sale is normally a better option than foreclosure, but it will still affect his credit.

If you were stationed at Eglin Air Force Base or Hurlburt Field, owned a home, and PCSd prior to September 2010, you might qualify for the HAP program. If you made improvements to the home or took out an equity line or refinanced, to cover the extra amount you must provide: “legible invoices, detailed statements, receipts and proof of payment for each improvement”.

Don’t get stuck with a short sale or foreclosure if you are Air Force, Army, Marines, Navy or Coast Guard. Take advantage of the HAP program for your Niceville, Crestview, Navarre, Fort Walton Beach or Destin Florida home sale.

Do you have more questions? Email me at [email protected]

It’s Wendy!

Wendy Rulnick, Broker, Rulnick Realty, Inc.
Call toll-free 1-877-487-9639 or local 850-650-7883 ext 204

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Eglin HAP Question – Why Does Seller Bring Money to Closing?

Wendy Rulnick — Thu, 19 Jan 2012 22:39:02 +0000

One of the biggest sources of confusion I find with Eglin Air Force Base HAP sales from the seller comes at closing. First, if you don’t know what HAP is – it’s the Homeowner Assistance Program from the Department of Defense. It’s designed to help military members who have permanent change of station orders (PCS), and are “upside down” in their home values, i.e. owe more on their mortgages than their property’s market value. HAP will pay the mortgage deficit under certain circumstances, which helps the service member avoid the credit impact of short sale or foreclosure due to their mandatory relocation.

One of the stipulations of HAP is that the Eglin airman is current on his mortgage payments, taxes and association dues, or that is the extent to which the benefits apply. For example, if you were six months behind in your mortgage, HAP would not pay the amounts in arrears to satisfy your bank. You must. So what’s the issue? Even service members who are “current” on their mortgage payments will normally owe a pro-rated amount of mortgage interest, taxes and maybe association dues at closing. Remember, mortgage interest is paid in arrears. If you have a payment due on March 1, that would cover the interest for the month of February, not March.

My last HAP seller asked me why he had a bill for almost $1500 at time of closing from the U.S. Government title agent. I told him it was probably his mortgage proration. He said, “But I made my mortgage payment!” I said, “Yes, but that covered the previous month.” If your closing is mid-month, you would owe about two weeks worth of interest to your mortgage company, which will be collected by the title agent to pay your lender at closing. That goes for taxes and association fees, too.

Florida’s state taxes are paid one year in arrears (not all states handle their property taxes the same way). That means that the tax bill for your Navarre, Niceville, Crestview, Fort Walton Beach or Destin property covers the previous year (arrears). If you close on September 1, for example, the buyer will still receive the tax bill for the time YOU owned the property during the past year. That wouldn’t be fair, would it? So at time of closing, you have to reimburse the buyer the eight months to apply to the tax bill they will be getting at the end of the year. Yes, your mortgage company normally (but not always) escrows this amount in your total mortgage payment. You will get a reimbursement check after closing for any remaining balance in your escrow account. But forthe HAP closing, you will owe the year-to-date taxes that are due. The same applies to homeowners association dues. The government won’t pay those on your behalf.

So what is a reasonable expectation for funds the Eglin service member might
need for closing? Set aside enough to cover one mortgage payment, and potentially, almost a year tax obligation. You probably will not need all of it, but be prepared “just in case”.

It’s Wendy!

Wendy Rulnick, Broker, Rulnick Realty, Inc.

Call toll-free 1-877-487-9639 or local 850-650-7883 ext 204
Email Wendy: [email protected]

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PCS from Eglin AFB? Another Navarre FL HAP Home Sold

Wendy Rulnick — Tue, 07 Jun 2011 13:05:51 +0000

This gorgeous home at 2408 Kodiak Ct., Navarre Florida was just sold using the HAP program. What is HAP? It’s short for Homeowner Assistance Program, and is a Department of Defense relocation benefit to U.S. Armed Forces members who meet certain requirements. It’s a terrific help for Eglin Air Force Base, Hurlburt Field and Duke Field airmen whose property values have declined. How? HAP may cover most, if not all, of your upside-down mortgage when you sell your property in order to PCS.

What are HAP requirements? Here are the main criteria, but HAP will do a full review of your situation to see if you qualify, and what your benefits may be:

1. You have PCS (permanent change of station) orders to move more than 50 miles away
2. You bought your home or entered into a contract to purchase prior to July 1, 2006 (that requirement is currently under review by Congress)
3. You lived in the home as your primary residence
4. Your PCS orders were between February 1 2006 through September 30, 2010 (there is a possibility of the program approving orders through September 2012 if funding is available)
5. Your home must have declined at least 10% in value. (Common in the Eglin AFB, Hurlburt Field markets).

Once you apply for HAP, and send your in the sales contract from the buyer you found with the help of your real estate agent, HAP will calculate how much of your mortgage deficit will be covered at closing. You might even get a credit back if you’ve done many home improvements.

HAP is a good alternative to short sale or foreclosure, as it will not affect your credit.

I’ve helped many Eglin and Hurlburt homeowners in Navarre, Destin, Fort Walton Beach, and Crestview Florida sell their homes using the HAP program. Contact me, and I’ll help you explore your options.

Eglin HAP steps

HAP Q&A

Apply for HAP

It’s Wendy!

Wendy Rulnick, Broker, Rulnick Realty, Inc.

Call toll-free 1-877-487-9639 or local 850-650-7883 ext 204

Email Wendy: [email protected]

Navarre FL Real Estate

Navarre Short Sales & Pre Foreclosure Help.

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Eglin and Hurlburt HAP PCS – July Cut-Off Date Misleading

Wendy Rulnick — Thu, 03 Mar 2011 19:13:57 +0000

If you are an Eglin Air Force Base or Hurlburt Field airman, you may have heard of “HAP”. HAP is the Department of Defense Homeowner Assistance Program that was expanded to help PCSing service members who are “upside down” in their mortgage loans.

You may have read the HAP website and think you don’t qualify for the program. One of the main qualifications per the site, is that you owned your home prior to July 1, 2006. Think again! There is almost a footnote on the site, that corrects the ownership date requirement:

“Q. If 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”

According to the Emerald Coast Association of Realtors statistics, almost 400 properties were placed under contract between January to July 1, 2006 which closed in July or later. These homes were in Navarre, Crestview, Destin, Fort Walton Beach and Freeport Florida. One of these buyers may have been “you”! I just helped an Eglin AFB airman whose home purchase and sale agreement was dated June 30, 2006, and who closed later in July. He is qualified for HAP!

If you are an Eglin, Hurlburt or Duke Field airman in need of HAP PCS assistance, investigate your options before resorting to short sale, VA Compromise sale or foreclosure. Contact a HAP – experienced real estate agent.

It’s Wendy!

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]

Short Sale, HAP, VA Compromise Sale Help.

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