One of the causes of financial distress is relocation.  Being in the military is a frequent cause of relocation, so it makes sense that there are special programs for short sales and other assistance for the military.  Members of the Armed Forces do so much for our country that it is important for real estate agents to provide special service to them. 

Military personnel and federal employees who are “under water” with their mortgage can benefit from a program by the Department of Defense that is administered by the US Army Corps of Engineers under the Base Closure Act known as HAP (Homeowner’s Assistance Program).   This program was extended under the American Recovery and Reinvestment Act of 2009.

The website says that “HAP provides assistance in four ways. For eligible applicants, the Government may:

  1. Reimburse you for part of your loss from selling your home.
  2. Assist you, if you don’t have funds from the sale of your home to pay-off your mortgage.
  3. Purchase your home by paying off the mortgage.
  4. Help, if you default on your mortgage.“

For short sales,  the private sale reimbursement program is the most applicable.  Under that program,  the military member or qualified government employee sells their home and gets reimbursed for some of the losses on the sale of the home. 

So, the home is sold with a short payment to the lender, but with an agreement to reimburse the lender later when these benefits come in.   This is an excellent use of the short sale process, as it gets the seller moved gracefully and may get the lender fully paid. 

So, if your seller is in the military or a qualified federal employee, look into these special benefits.  The members of the Armed Forces deserve to get every benefit allowed, as they have definitely earned it.

For a more detailed discussion on this topic, please go to http://shortsalesr.us/short-sale-how-to/short-sales-and-the-military/.