As must of you know who read my posts I’ve had the good fortune to work with a number of military families in the Northern Virginia area who are eligible for the Department of Defense Homeowners Assistance Program (HAP). The HAP program helps military families who are upside down on their mortgage get relief by covering between 90-95% of the difference between current market value and their original purchase price.
This week Rep Gerald Connolly (D-VA) introduced a bill to amend the current HAP program to allow the Secretary of Defense flexibility regarding the start date for eligible home purchases. Currently the start date is homes purchased on or before July 1, 2006. Here is a real life example of the difference a few weeks can make.
This summer, in the same neighborhood I had two listings. Both were active duty military families. One family bought their home just before the July , 2006 date. The other bought their home 3 weeks later. One family sold their home with HAP benefits and there was no impact on their credit. The other family had to undertake a short sale. The lender required them to be 30 days late on their loan. So there credit was hurt. These houses were two blocks apart and the impact of the market was identical for both families.
Though the bill is in it’s early stages it could have a major impact on military families throughout the country if it can make it through committees. If you are in favor of supporting this bill I encourage you to send your support of the bill to your Congress person and or Senator.