Tag Archives: homeowners assistance program

Homeowners Assistance Program (HAP) July 25, 2022

The Army Corps of Engineers had the Homeowners Assitance Program during the recession of 2007 to 2011 that assisted Service Members who were upside down on their mortgages. There were certain criteria that had to be met such as that you must have purchased the property between certain dates as your primary residence and that you must have received that sent you away from the home you purchased. If you met the criteria then the HAP program in Hawaii contributed the difference between what you sold the house for and what your mortgage balance was. The Service Member who sold the house did not make any profit but the HAP program saved the Service Member from doing a short sale or from going into foreclosure.

David Kucic and Hawaii Military Realty, Inc. assisted several Service Members with HAP sales during the recession.

As I look at the current housing market in Ewa Beach, Hawaii, I see a grim picture for Service Members who purchased homes duriing the pandemic and will soon be on orders to leave Hawaii. Many homes are stagnant on the market because of the large amount of homes for sale and the hesitation of Buyers to purchase a home due to the uncertainty of the future, home prices, inflation and interest rates to name a few.

If you are a Service Member in a difficult situation, please dont hesitate to contact Hawaii Military Realty, Inc for honest and truthful information. You will deal with our team of career, retired Service Members, spouses and active Service Members who are all professionally trained and licensed to take care of our fellow Members.

HAP Program in Hawaii

1.  Are you a service member stationed in Hawaii and upside down on your home? (it is worth less than what you owe on it) 
2.  Did you buy your home prior to July 1, 2006?
3.  Are you on orders to PCS from Hawaii to a location more than 50 miles away?
4.  Was this home your primary residence in Hawaii?
5.  Was this PCS move ordered prior to Sep 30, 2010?

If you answered YES to these questions, you may be eligible to sell your house in Hawaii under the Homeowners Assistance Program or HAP.

You will need a real estate agent in Hawaii to help you navigate through this complex procedure.  Call or email me for more information.  I look forward to helping you.

Homeowners Assistance Program in Hawaii

The Homeowners Assistance Program in Hawaii or, as it is more commonly referred to as the HAP is widely being used by Active Duty Military in Hawaii.

The program is designed to help Service Members in Hawaii with selling their homes and the HAP makes up all or some of the shortage.  Be aware that you may get a Form 1099 and you will have to claim the amount of money brought in by HAP as income.  Consult your tax professional for further details.

This is only available to Active Duty Military in Hawaii that meet certain criteria.  The exact criteria can be found at http://hap.usace.army.mil/EP_PCS.html.

Here is another very important fact about the HAP that many Active Duty Military Veterans in Hawaii are not aware of.   If the Military Member purchased the house using a VA Loan in Hawaii and the HAP doesn’t cover 100% of loss, the VA Loan Guaranty might pick up the rest of the shortage so that the Military Veteran doesn’t have to come out of pocket with any money.  I am working on a HAP right now for an Army Helicopter Pilot who has this exact scenario.

If you own real estate in Hawaii, are an active duty service member and you need more information about HAP or short sales in Hawaii, call or email me anytime for a personal and confidential assessment of your situation.

HAP/Short Sale Program In Hawaii (A True Story)

HAP/Short Sale Program In Hawaii (A True Story)

Last year, “Roger” and “Crystal” needed to sell their Ewa Beach, Hawaii home because of a military PCS (Permanent Change of Station) move back to the mainland.

Due to the drop in prices from the time they purchased their Ewa Beach Single Family Home until it was time to sell, they found themselves in an upside down position just like many other Hawaii home owners.

They decided to list their home as a Short Sale adding to the already inventory of Short Sales in Ewa Beach.  Simultaneously, they applied for the HAP or Homeowners Assistance Program through the US Army Corps of Engineers.

After listing their home with Team Kucic, of RE/MAX Honolulu as a Short Sale, multiple offers were received, Roger and Crystal selected one offer from a VA Military Buyer in Hawaii and within 45 days, the lender approved the Short Sale and the transaction closed.

As part of the Short Sale Approval, the lender required Roger and Crystal to sign a promissory note saying they would pay back $XXXXX to the lender over a period of years at a 0% interest rate.  Roger and Crystal negotiated with the lender and got the lender to cut the amount by 50% if they paid the amount in full all at once.  The lender agreed.

Initially after the short sale, Roger and Crystals credit dropped 70 points.  After they paid off the agreed upon amount to the lender (50% less than what the lender wanted), the lender reported the transaction as “settled” to the credit bureau and their credit score went back up 40 points. When it was all said and done, they had lost 30 points on their credit score.

The HAPapplication that they submitted was disapproved because they had not seen a decrease of 10% or more on the price of their home.  I don’t know if the HAP folks are looking to Zillow or RealtyTrac to get their info but they (HAP) are WRONG about the 10%!  Their property definitely went down 10% or more.  This is unfortunate because Roger and Crystal met every one of the criteria set forth by the HAP program only to be denied due to HAP obtaining inaccurate information about home values in Ewa Beach.