Exit Realty of Beaufort is working with area military homeowners in getting out from under their undervalued homes. Exit Realty of Beaufort specializes in H.A.P. sales. It is surprising how many service members are not aware of this fantastic program. It is also disheartening to see service members who have lost their homes through short sale or foreclosure when H.A.P. was available. H.A.P. stands for the Homeowners Assistance Program American Recovery and Reinvestment Act of 2009. All military service members who purchased a home before July 1, 2006 and had to PCS from that location prior to September 30, 2010 are eligible. If service members are unable to sell their home at the price they paid, they can list the home with a realtor at "current market value." When a contract is presented and accepted by the seller it is submitted to the H.A.P. representative. H.A.P. will conduct an appraisal to insure it meets H.A.P.'s parameters. The home can be sold below the purchase price and the service member will receive 90% of the original purchase price.
Here is an example: 11 Governors Trace Ladys Island, SC. Purchases May 31, 2005 for $485,000. The owners PCS was June 2008. the home was listed for sale March 2011 for $417,000. A contract was accepted for $379,000. The H.A.P. appraisal determines if the contract meets current market value. Seller owes $390,000 on the loan. H.A.P. pays approximately $486,500 and the seller nets $96,500.
The contract price is irrelevant to the seller, as H.A.P. will pay 90% of original purchase price. This makes for a stress free transaction and no need for seller /buyer negotiations. If you or someone you know owes more on their home than what it is worth and you don't know what to do, please seek professional assistance from an experienced real estate professional.