If you are an Eglin Air Force Base or Hurlburt Field seller thinking about HAP, (military Homeowners Assistance Program), you may not be aware that effective February 1, the GAPS (Government Assisted Private Sale) has ended.  Since we are talking “military”, there are a lot of acronyms, so I’ll start with a quick explanation.  HAP is the program run by the Army Corps of Engineers that was expanded to assists U.S. military service members  who have Permanent Change of Station (PCS) assignments, with “upside down mortgages” avoid foreclosure or short sale. Basically, HAP will cover the shortfall (part of mortgage balance left over after net proceeds from sale) at closing if the service member qualifies for the program.

Formerly, there were three types of HAP sales: Government Acquisition, Private Sale, and Government Assisted Private Sale (GASP).  Here is a quick, simplified explanation of each:

Government Acquisition: The U.S. will buy the subject property from the qualifying service member, and simultaneously pay off the mortgage balance not covered by the sale, selling the property to the buyer the service member found (normally through his Realtor).

Private Sale: The qualifying service member sells his home and covers the mortgage shortfall himself. The U.S. will reimburse the service member some time after closing.  The reimbursement calculation is simplified as: 90% of your prior fair market value (your purchase price plus costs of improvements), add  7% for closing costs, then subtract out your new purchase price and mortgage payoff, plus any buyer credits and actual closing costs.  Using this private sale method, some military members can  recoup more of their lost equity, dollars they have actually used for downpayment or improvements, as compared to the Government Acquisition, which will just pay off the mortgage deficit.  The caveat with Private Sale, is that you would have to cover the entire shortfall at closing, then “wait” for the U.S. reimbursement check.  That process can  takes weeks or months.

Government Assisted Private Sale (ended): Instead of waiting for your U.S. reimbursement check after a “Private Sale”, you were paid by the Government at closing.  This program has ended, effective February 1, 2012, per my contacts at HAP. In fact, my latest HAP closing on January 31, was a GAPS, and we were told any extensions to the closing date would remove the seller from the program.

So, what does this mean to you, the Eglin AFB or Hurlburt Field airman?  You still have two HAP options available, Government Acquisition or Private Sale.  In any event, the good news is that if you need to sell your home, and qualify for HAP, you can avoid foreclosure, short sale or VA Compromise Sale, and keep your credit score intact.

Do you have questions? Email me at itswendy@rulnickrealty.com

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: itswendy@rulnickrealty.com

Eglin AFB and Hurlburt Field VA Compromise, HAP, Short Sale Help

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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: itswendy@rulnickrealty.com

The post Eglin HAP Question – Why Does Seller Bring Money to Closing? first appeared on Rulnick Realty.

This sharp HAP home in Marion Manor, Navarre Florida, is just what you need to welcome the New Year. It sparkles! The living room, kitchen and breakfast area all have cathedral ceilings for an open feeling.  The kitchen has breakfast bar, pantry, and plenty of cabinet and counter space, and is adjacent to tiled eat-in area. Master bedroom is oversized. Master bath features his and her vanities, separate garden tub and shower and two walk-in closets. Architectural touches include plant ledges and transom windows. Marion Manor is “West of Hurlburt” for good commuting to Hurlburt Field. It is also convenient to Santa Rosa Sound, with gorgeous sugary beaches, fishing and restaurants.

This Marion Manor home at 1987 Alfred Blvd, is listed for $177,900.

What is HAP? It’s the Homeowner Assistance Program for military members who transfer (PCS) to new bases, to help them avoid short sale or foreclosure.  In a nutshell, when the market value of an Eglin or Hurlburt Field area property is less than the mortgage balance, HAP will pay the shortfall for the servicemember.

Learn more about buying a HAP home.

It’s Wendy!

The post 1987 Alfred Blvd, Marion Manor, Navarre FL – HAP Home For Sale first appeared on Rulnick Realty.

Lovely HAP home for sale in Harvest Village, Navarre Florida. You’ll find the sharp decor is captivating and inviting. Custom paint palette, cathedralled kitchen and living room with palladian window add panache. Fenced back yard with pavered patio perfect for afternoon tea or late night cocktails. New roof 2005. This Harvest Village home is close to Hurlburt Field and the Navarre Beach – for sunning, swimming and boating fun!  Because it’s a HAP qualified home, you won’t have to wait long to move in.

7446 Harvest Village Ct., Navarre FL – HAP Home for Sale – $79,900

How to Buy an Eglin or Hurlburt Field HAP home

HAP PCS Steps

If you are looking for a HAP agent in Navarre, Crestview, Destin or Fort Walton Beach, Florida, contact Wendy Rulnick.

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: itswendy@rulnickrealty.com

The post 7446 Harvest Village Ct., Navarre FL – HAP Home for Sale first appeared on Rulnick Realty.

You want privacy, an estate-size lot and waterfront? This elegant brick home at 3107 Wild Oak, Navarre Florida is a HAP approved bayfront home for sale. Set on approximately one acre – with over 130 feet of water frontage on East Bay, it’s very private yet convenient to Hurlburt Field. Find touches like bull-nose corners, archways, striking foyer and a magnificent vaulted living room adjacent to bar and sink. Huge kitchen with long center isle, rows of cabinets and extra counterspace for all your assembling, cutting and cooking! Jenn-Aire range, Bosch dishwasher, two ovens, one convection for gourmet moments. Walk out from kitchen/dining area to lovely screened porch – great for dining with a bay view. The master bedroom is on the first floor, with French doors to a waterfront patio. It has its own romantic fireplace, and large whirlpool tub in the master bath.  Outside, find apple, lemon, orange trees and grape vines. Well located for Hurlburt Field commuting, jaunts to Navarre Beach and near the public boat ramp at the end of Live Oak.

3107 Wild Oak, Navarre FL offered for $425,000 – HAP approved Navarre bayfront home for sale.

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: itswendy@rulnickrealty.com

Navarre FL Real Estate

Navarre Short Sales & Pre Foreclosure Help.

The post 3107 Live Oak, Navarre FL Bayfront HAP Home for Sale first appeared on Rulnick Realty.

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:

1. 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.
2. 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.
3. You apply for HAP.
4. 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).
5. We find a buyer for your home who pays fair market value with reasonable closing costs.
6. You submit the purchase and sale contract, with a market analysis to HAP.
7. 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.
8. Your Benefits Realty Specialist will then request the loan payoff amount from your mortgage company.
9. 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.
   1. 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”!

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: itswendy@rulnickrealty.com

The post Eglin HAP PCS Steps first appeared on Rulnick Realty.

Dramatic and impressive Navarre Florida HAP home at 2408 Kodiak Ct in Creetwood Place with stunning features and upgrades. The first mood-setting touch is the hand-scraped hickory floors, which set off the high ceilings, plant ledges and soothing wall colors. The kitchen is remodeled with granite counters, top of the line stainless appliances, new disposal, crown moulding on cabinets and custom fixtures. Kitchen is open to the bay-windowed eating area overlooking yard. Master bath is elegant with soaking tub, Italian stone floors and expanded travertine shower. The split plan has three bedrooms in the other wing, plenty for home office use. This Creetwood Place, Navarre Florida HAP home has a generous living room with angled corner fireplace. Outside is an expanded patio with salt-water in-ground pool with waterfall feature. All windows are hurricane-rated with upgraded rear storm door. There is a transferrable builder warranty. Located at the end of a cul-de-sac, great commuting location to Hurlburt or Eglin AFB. Sale contingent on HAP approval.

2408 Kodiak Ct., Creetwood Place, Navarre FL – offered for $237,900

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: itswendy@rulnickrealty.com

HAP, Short Sale and VA Compromise Sale Help.

The post 2408 Kodiak Ct,. Creetwood Place, Navarre FL HAP Home for Sale first appeared on Rulnick Realty.