Military Homeowners PCS'ing - APPLY FOR 'HAP'

[weneedpeace]

I'm taking a stand for my fellow military families who are now also facing financial hardship, due to their homeownership & involuntary PCS transfers with the military.

Who I am:
- 14 year spouse
- Former transaction coordinator for a 'Top Producing' real estate team )
- Former Ombudsman
- Transferred 19 months ago, part of the first wave of military members PCS'ing AFTER the adjustment in the real estate market

• Military installations invited mortgage brokers, politicians, and real estate companies onto our bases to educate us about the benefits of homeownership during the height of the market. I sat in the bull pen office, listening to *green Realtors who honed their skills in persuading junior airman and JO's to purchase properties that they should *not been qualified for. Witnessed conversations of agents who strongly advised against a buyer's right to a Home Inspection or to borrow money to escalate an offer on a 'hot' listing. Sat in on closings where the mortgage broker and buyer's agent were 'in bed together' (literally = married), selling unknowledgable first time buyers on properties that exceeded 41% of their DTI with bad ARM's and other terms. (I was the admin sit in for the listing side, nothing to do with the buyer or their representation).

• Traditional lenders like Wells Fargo laid out 'Military Programs' that alluded to 'making life easier for military members when they PCS' when the reality is that is a one sided program, with absolutely no assistance when you transfer.

• Military oriented credit unions rolled out programs established to credit you for your purchase through them, even if the loan package was not to your benefit.

What you can do:
*Link in through VRSAM. He has a forum dedicated to our specific needs that I believe goes hand in hand with the efforts set out here with Moe and Evan.

*Write your congressman in both your CURRENT duty station/state AND the state where your property is located, if you've transferred on. Request that they send a letter on your behalf, and do not forget your Delegates, Senators.. Seek out those that have specific sensitivities to veterans.

*Contact the Veteran's Adminstration VA Loan Offices for your region, regardless of whether or not you have a VA Loan. If you do have a VA Loan, link in with your specific representative for your property. They can assist you with communication efforts with your lender, documentation of issues, and may have additional resources.

*Understand that those of us that thought we were doing the honorable thing by leasing out our properties at a loss, are not priority in the eyes of the investor/lender-servicer. We are CONSIDERED IN A MAJORITY OF CASES AS 'INVESTORS' .. when the reality is that we were military personnel that purchased our homes as our 'four walls' for our family, and were subsequently transferred involuntarily.

Do not 'suck it up' and suffer as a result of this. Consider all options before you become an unwilling landlord. It is mentally exhausting and taxing to financially absorb a negative loss into your family budget, after you transfer. Especially, if the service member is due for more training, a change in billet/rate, stationed outside the CONUS or far from the property, or scheduled for a deployment. We sat every month for the last 19 months panicked about whether we'd receive a phone call from our property manager about any repair. Taking the loss between PITI and what the tenant pays is one thing.. adding in maintenance, repairs, 10% of rent to property manager, warranties like termite bond inspection annually, pest control, HOA fees, assessments, home warranty plans can put you under water even quicker.

We have drained our 401k TSP.
We have drained our regular savings that we thought *were enough

There are options.

This will be a slow process, however, the HAP program has finally be rolled out where they are beginning to process applications. Assess whether this is a wise prorgram for you. There are several options for potential benefits, dependent on whether you opt/opted to sell your property already at a loss, list it now, sell directly to the government, suffered penalities/legal fees as a result of a foreclosure.

Access the program details at:

Homeowners' Assistance Program - Department of Defense


Address this and other options before you consider:
*A) Securing a tenant, if you truly do not desire to become landlords and limit your options to dispose of the property or increase liability, based on your property's state real estate law

*B) Separate your family unit, by GEOBACH and leaving family behind to 'sell the house that likely will not sell'

*C) Watch market trends for your area, along with market times. Link in with a trusted and experienced Realtor that has longevity in your specific area. Someone who has been through the wave and can give you the most educated comparative market anaylsis for your home.

Because the military has not (from what I have read and networking with others) set out an established protocol of how they are handling clearances, the best rule of thumb is to be transparent with your command. Seek advisement from your immediate chain of command. Go through the process of speaking with the Relief Society, Family Services, Legal.. Garner support from higher chain that has reviewed your personnel record or knows your ethical standards. Have them speak with your CO/XO/CMC and create an advocacy to assist you. There are no guarantees, but it is a much better position to be in when you have disclosed that you have a home that you left behind when you transferred that you are trying to contend with vs. not saying anything at all.. Do not wait for Chase, Wells Fargo, BofA to figure out how to contact your superiors at your command..

It may be too late for our family, but I hope to raise awareness on this board that others like us ARE out there. All ranks, all rates, all branches.

Post if you have a personal story, question, or input..

WNP

[Evan Bedard]

Hi weneedpeace,

We truly appreciate you efforts! Thank you very much for sharing.

[weneedpeace]

Thank you, Evan.

If the lenders wish to categorize military as 'investors' .. at least give us the comfort in it meaning that they are truly devoting the time to our non-military counterparts like fellow loansafe families.. Truly, after speaking with 5 non for profits and information here - I know that is not the case.

We are an example of military who purchased within reasonable debt ratios (did not even purchase a home until we were debt free). Did the 'boring' VA 30 yr 6% and it's still bit us in the rear. So, for certain, if we're in this place - there are 10 more of 'us' military who were either deceived or uneducated to the risks of creative financing products that were offered. While the majority of military families that I've spoken to agree that we all made a concious choice to take the risk in purchasing while serving active duty - there are many of us that were not scheduled to rotate or could not have foreseen that they would do so during a catastrophic time.

I do hope that the Homeowner Assistance Program truly will be that catastrophic relief, as mild risk is understandable but military families should not be living in their cars or tents or separated from their service member in non-deployment times - as a result of this real estate market. And, my husband certainly will not longer be slave to the lender rolling up his sleeve to earn money from his Anthrax plasma to try to have enough to pay Wells Fargo.

[weneedpeace]

FYI ..

If your property falls in with the Savannah regional office, they have approximately 2800 applications to date with 4 processors. They highly recommend that you mail your application vs. fax. (I'd suggest sending ex. 2nd day air with tracking and follow up)

They do have a few various departments. When you call, you get someone who can read off information and give you basic details. They also have an eligibility contact who can clarify whether you qualify for benefits, as well as two ladies who are processing benefits and can address specific questions.

Make sure you apply with the regional office that is assigned to your former duty station (where the property in question is) NOT your new duty station.

Also - search for articles regarding current legislation. Military members are being taxed on these benefits still. Example: If you receive a $100,000 benefit, you will only receive $75,000 which could be 'make or break' for you. They *were doing a 1099 and it appears that may have changed..

[dan102877]

Originally Posted by weneedpeace

FYI ..

If your property falls in with the Savannah regional office, they have approximately 2800 applications to date with 4 processors. They highly recommend that you mail your application vs. fax. (I'd suggest sending ex. 2nd day air with tracking and follow up)

They do have a few various departments. When you call, you get someone who can read off information and give you basic details. They also have an eligibility contact who can clarify whether you qualify for benefits, as well as two ladies who are processing benefits and can address specific questions.

Make sure you apply with the regional office that is assigned to your former duty station (where the property in question is) NOT your new duty station.

Also - search for articles regarding current legislation. Military members are being taxed on these benefits still. Example: If you receive a $100,000 benefit, you will only receive $75,000 which could be 'make or break' for you. They *were doing a 1099 and it appears that may have changed..

And...you don't qualify if you have an equity loan that you cannot provide receipts for every penny of it that you used! I learned that the hard way...now i'm stuck and can't use HAP even though I qualify with all the other requirements.