What Is The VAHLC Military VA HAP Short Sale Program?

https://www.vahomeloancenters.org/military-loan-approval-after-bankruptcy-or-foreclosure/

THE VAHLC HAP military short sale VA loan avoidance program is designed to assist homeowners whose 1) property value is less than the mortgage balance and 2) who need to sell their home. You are not required to have a VA loan or VA loans to qualify.

If you meet the eligibility criteria, you may sell your home and have the United States Department of Defense pay your mortgage balance. The program is designed to assist military and civilian Federal employee homeowners who will suffer a loss when selling their home. This program was expanded in part of The American Recovery and Reinvestment Act of 2009.

Eligibility for the military short sale assistance program:

Deployed wounded, ill, or injured members of the United States Armed Forces and forward deployed wounded, injured, or ill Department of Defense (DoD) and Coast Guard civilian homeowners (including employees of non-appropriated fund instrumentalities) reassigned due to medical treatment or rehabilitation or due to medical retirement as a result of their disability. The disability must be rated 30% or higher. There must be a need to relocate as result of the injury.

Surviving spouses of the fallen. The spouse must relocate within 2 years of the death of the veteran or active duty spouse.

Base Realignment and Closure (BRAC) 2005 impacted homeowners relocating during the mortgage crisis; and

Service member homeowners undergoing Permanent Change of Station (PCS) moves during the mortgage crisis. If you have a change of duty station, you may be eligible.

What programs are available?

There are two programs available at this time. Program one is a grant program. If you qualify for the grant, your VA entitlement will be restored in full. Program two is a type of short sale. With this program, the VA Home Loan Benefit can be affected but you will not need to repay the amount affected.

How does the program work?

Step 1:
VA Home Loan Centers will determine your eligibility in the programs.

Step 2:
VA Home Loan Centers will implement an aggressive marketing campaign. Where possible, VA Home Loan Centers will offer closing costs credits and other incentives to help procure a buyer. If you do not currently have an agent, VAHLC will provide representation for you (at no cost to you).

Step 3:
Upon an accepted offer, VAHLC will prepare and process the request for assistance. The escrow will close the same as with any other escrow. Regardless of program, any shortage of loan payoff, closing costs, or commissions will be paid for on your behalf.

VA HLC HAP Grant FAQ:

Is there a fee for this service?
There is no cost to you (the homeowner) for this service. The listing agent agent involved in the transaction will however, have to provide a capital contribution.

Will the grant program impact my credit or security clearance rating?

No. Unlike a short sale or foreclosure, there will be no impact on your credit report. The loan shortage is paid in full.

How is this different from a foreclosure or short sale?
Unlike a short sale or foreclosure the program will pay your loan off in full. Also, you will be eligible to purchase another home upon the completion of the sale. With a foreclosure or regular short sale, you will have to wait before you can purchase again.

How soon can I apply for another VA loan?
Depending on the circumstances at the time of sale, the waiting period may be as short as 1 day or as long as 24 months. For more information click here.

VA HLC HAP Short Sale FAQ:

Is there a fee for this service?
There is no cost to you (the homeowner) for this service. The listing agent agent involved in the transaction will be required to contribute part of their comission.

Will the VA HLC short sale program impact my security clearance rating?

No. If you are on time with your non-housing debts and have no derogatory items, the short sale program will not have an impact on your security clearance.

Will the VA HLC short sale program impact my credit rating?
Not significantly. The amount of impact to the credit score will vary depending on how the bank reports the transaction and whether or not you remain current on the mortgage payments. Most borrowers who remain current on their mortgage will only see a 15 point drop in their score at the completion of the transaction. Regardless of the impact, the drop in score is usually temporary and many borrowers will see their score recover in 12 months or less.

How is this different from a foreclosure or short sale?
Unlike a traditional short sale or foreclosure, either program will pay your loan off in full. Also, you will be eligible to purchase another home upon the completion of the sale if you are current on payments at the time of closing. With a foreclosure or regular short sale, you will have to wait before you can purchase again.

How soon can I apply for another VA loan?
Depending on the circumstances at the time of sale, the waiting period may be as short as 1 day or as long as 24 months. For more information click here.

Call 888-573-4496 (option 2) to apply for VA loan assistance or for more information. If you would like to read more about short sales and VA loans click here.

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