In a bad real estate market, service members can be more adversely affected than the general public by the losses that come from a short sale of their home, but with frequent base closures and military realignments, they often have no choice but to sell.  Military families in Colorado Springs may already be aware of a successful DOD-sponsored program called the Homeowners Assistance Program (HAP) designed to minimize their losses from a short sale, but this program has now been extended.

Thanks to the American Recovery and Reinvestment Act of 2009 (ARRA), HAP has been expanded to assist military service members and DOD employees who were wounded or became ill while deployed.  It will also be extended to surviving spouses of DOD employees who were killed while deployed, as well as those assigned to BRAC 05 organizations and any member who was forced to permanently relocate during the housing crisis.

The HAP program is administered by the US Army Corps of Engineers (USACE) to help military homeowners selling their primary residences as a result of a realignment or base closure, and who are suffering a financial loss due to falling real estate values at the time of the sale.

If you are selling your home in Colorado Springs and meet the eligibility requirement for this program, you may be entitled to compensation to make up for losses from a short sale, foreclosure or government purchase of your property.

A Colorado Springs real estate broker can help you determine if your situation meets the conditions necessary for compensation from HAP.

If you are eligible for HAP, here is how the Government will assist you:

1. Reimburse part of the loss incurred by selling your home.

2. Assist you, in paying-off your mortgage if you don’t have funds from the sale.

3. Purchase your home by paying off the mortgage.

4. Provide financial assistance if your mortgage is in default.

For Colorado Springs military families that need to relocate and sell a home, the best news about this program is it won’t impact your credit or security clearance, and it will cover the shortage.  To view a complete list of eligibility guidelines and benefits, visit the Homeowners Assistance Program web site.