Please Help with HAP Questions
Last Post Oct 15, 2019 06:16 AM by maureenowaters. 52 Replies.
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CoastGuardGuy
Posts:831


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Nov 22, 2009 12:10 PM

    I don't know who to trust and who to believe.

    My application is currently with HAP. I have a condo in California and I got PCSd to Miami.

    Can someone tell me:

    - If I sell for a loss, how much will HAP pay me/bank for the loss? What percentage?

    - Are we really exempt from all  taxes on our HAP benefits now? No tax issues to consider?

    - Do I have to tell the Bank I'm using HAP? Does it matter if they know? As long as they the the loan paid off I guess it  shouldnt' matter. I don't want to deal with Wells Fargo because they were a nightmare to deal with in the past.

    thanks for any help.

    If anyone here has been through the HAP process and can leave their phone or email address, I would greatly appreciate it.

    Angela
    Posts:831


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    Nov 22, 2009 04:14 PM
    • Correct Answer?

    Go to the following website:

    http://hap.usace.army.mil/EP_PCS.html

    Read CFR 32 Part 239 and the FAQs.  If you have any questions after that, I'd be happy to assist you.

    Angela
    Posts:831


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    Nov 22, 2009 04:36 PM
    • Correct Answer?
    1. You have to take a 10% loss if you go with a private sale. The Corps will pay reimburse you for anything over 10%. The calculation is as follows:

    90% of Prior Fair Market Value (PFMV) (purchase price) less the greater of your appraised value or selling price, (whichever is greater)

    So, if your PFMV is 100,000 and you sell for 85,000:

    90% x 100,000 = 90,000 - 85,000 = $5000 reimbursement

    Note: your pfmv may be more than your original purchase price if you have receipts to show any improvements and not repairs.

    If you go with a government buyout, you still have to have a buyer for your property. But, you will receive 75% or your mortgage payoff, whichever is greater. This would be a better option if you ask me. Though you still have to have a buyer, you are done with everything at closing and you don't have to take any loss. The government buys your house, pays your closing costs and turns around (usually the same day) and sells it to your buyer.

    2. Your HAP benefits are tax free.

    3. I don't think you have to tell your bank that you are using HAP as long as you have the funds to pay off your mortgage at closing. Anyone please correct me if I"m wrong.

    It really will be beneficial if you read 32 CFR Part 239 and the FAQs.

    My husband (active duty AF) and I applied last March for the HAP. We have had our home priced way to high for a year and a half. Friday, we were able to reduce the price $30K knowing we are now eligible for HAP. Of course, it took an appraisal and our realtor to tell HAP we were way to high. Originally, we were denied because the Corps' computer program that calculates home losses in a market stated our county had not declined 10%. However, I disputed that and they ran their numbers again and found that our county had in fact suffered a 10% loss. So, you see this is not all cut and dried. You have to keep on top of things.

    I will post any additional info about our application.



    CoastGuardGuy
    Posts:831


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    Nov 22, 2009 06:43 PM
    • Correct Answer?
    thank you so much Angela. That makes sense with the calculation. I wasn't sure about that even though I did read all over the website already.

    So can I choose to do the government buy out instead of the private sale?? Why wouldn't everyone just do the government buyout if they don't have to cover any loss when doing the government buyout option?

    I thought I had to do the private sell.

    You can't believe how stressed I've been about this for so long. I currently live on the East Coast and my wife is on the West coast primarily because of this damn condo. I just want to get rid of the damn thing. I can't wait.

    HAP has already requested a couple of more documents from me, but they say I should qualify.

    Do I just tell them if I want to do the government buyout instead of the private sell?

    thanks!
    CoastGuardGuy
    Posts:831


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    Nov 22, 2009 07:04 PM
    • Correct Answer?
    Angela,

    do you have an email where I can contact you?

    Sam
    Angela
    Posts:831


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    Nov 22, 2009 07:20 PM
    • Correct Answer?
    you can contact me at jatmgarvey@charter.net
    Angela
    Posts:831


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    Nov 22, 2009 07:29 PM
    • Correct Answer?
    CoastGuardGuy,
    The government buyout isn't the easiest in the world to accomplish but it can be done. From what I understand, you need to have a 3 star general's approval and your house has to have been on the market for 120 days. I would definitely call your HAP district office to find out more about the government buyout because things may have changed.

    We were told by our district office that we are in fact "eligible" and that we just needed to get a reasonable offer. Then we can choose between the government buyout or the private sale. Benefits will then send us a letter stating our benefits. In our case, I believe we will be going with a private sale because we had just had an appraisal done in Jan 2006 and for us a private sale makes more sense. Each case is different though and that is why it is a good idea to establish a raport with your couselor at the district office. CALL THEM. IT'S THEIR JOB! Ours has been awesome.

    I can sympathize with your situation. My husband was in Korea for a year and then commuted for year so we were split for 2 years, a year because we couldn't sell our house. After HAP didn't happen, we finally decided to rent our house out with a six month lease just hoping and praying that something would happen with HAP by the end of the six months. Praise God, it did! Now we just need to sell. Mind you we are renting our house out for less than our mortgage but something is better than nothing and it's worth it just to be back together as a family (we have 2 young children).

    Angela
    Posts:831


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    Nov 22, 2009 08:26 PM
    • Correct Answer?
    CoastGuardGuy,
    don't use that e-mail address. it was an alternate for me but it's no longer valid. I just realized it. Just post here and I will answer.
    CoastGuardGuy
    Posts:831


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    Nov 22, 2009 08:48 PM
    • Correct Answer?
    Angela,

    yes I do have a contact at HAP now which is good.

    can you contact me at supportguy@inbox.com ??

    thanks,

    Sam
    usmcfam5
    Posts:831


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    Nov 22, 2009 09:58 PM
    • Correct Answer?

     My husband is an AD Marine. We applied for HAP in March as well. We PCS'd overseas in August and are still waiting on any information. We purchased our home in SC for 276k and were told by our relator that he could not list it for anything higher than 190k. We are just barely able to keep making the payments. Does anyone have an opinion on trying to rent it at this point in time? 

    Angela
    Posts:831


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    Nov 23, 2009 06:31 AM
    • Correct Answer?
    usmcfam5,
    Did you realtor show you comparisons? It may be worth your money to have a formal appraisal done. We did and it didn't come out so nicely. We had to lower or price 75K from when it appraised in Jan 2006. Absolutely sickening.

    As far as renting goes, there is a clause on the HAP site that you could insert into your rental agreement. But have you checked with the HAP office? I honestly don't think I would get into a 6 month lease at this point in time. Have an appraisal done. Then you can lower your price based on that. Tell you realtor what price you will go to based on the appraisal but don't tell your realtor what the appraisal price is. You can accept an offer within 10% of your appraised price or present fair market value (if your realtor has showed you comparisons). Your realtor should be documenting the showings. You will also have to prove to the HAP office that you are listing your house at indeed a fair market value. You don't want to go too low.
    Joe and Deb - VR SAMUser is Offline
    VR SAM
    Senior Member
    Senior Member
    Posts:328


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    Nov 24, 2009 03:33 AM
    • Correct Answer?

    Hi folks, have been catching up on forum posts and wanted to clarify a couple of items.   I may have slept through this, but my last information was that we were still awaiting final legislation that made any amounts covered by the government from HAP a non-taxable event for federal taxes.  

    Angela, do you have a link that clarifies this?   Under the BRAC HAP program it was exempt, but the stimulus language for the PCS HAP overlooked that exemption and it was my underrstanding that folks still had to pay the taxes until the letislation was signed.   Again, have been on the road and may have missed it.    

    Also, while many of our service members are from states that exempt military from paying state taxes, each state may view this differently so you would want to check with your accountant / tax preparer on all of this.  

    Angela, thanks for your insight.  Joe Gladden 

     

    Joe and Deb Gladden
    703 754-3036
    Fax: 703 848-3690
    homesformilitary@vrsam.com
    http://www.vrsam.com
    Specializing in Military, Defense Contractors, Fed Employees Relocation.
    Ask us About Fawn Lake - Virginia's Best Kept Secret!
    Angela
    Posts:831


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    Nov 24, 2009 07:26 AM
    • Correct Answer?
    Please see HR 3590:

    http://hap.usace.army.mil/Documents...R_3590.pdf

    http://hap.usace.army.mil/Documents...mption.pdf

    Joe, you are correct about state taxes. Each state may be different but I believe that many states how now passed bills to make the benefits tax exempt as well.

    Angela
    Angela
    Posts:831


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    Nov 24, 2009 08:40 AM
    • Correct Answer?

    Now that I look I'm really not sure which bill number it is.  In any case, USACE says benefits are tax exempt and I know I've seen it blogged all over the place but I didn't catch the number and my google results aren't so great.

    Joe and Deb - VR SAMUser is Offline
    VR SAM
    Senior Member
    Senior Member
    Posts:328


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    Nov 24, 2009 01:43 PM
    • Correct Answer?

    Thanks.  Knew it was coming, just couldn't remember if it had been signed.  Joe

    Joe and Deb Gladden
    703 754-3036
    Fax: 703 848-3690
    homesformilitary@vrsam.com
    http://www.vrsam.com
    Specializing in Military, Defense Contractors, Fed Employees Relocation.
    Ask us About Fawn Lake - Virginia's Best Kept Secret!
    anon1
    Posts:831


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    Nov 24, 2009 04:47 PM
    • Correct Answer?
    So, has the non-taxed part actually been passed and signed? I can't see on the link that it was actually signed.

    This would be the best news we've had in almost a year on HAP, wouldn't it?! Thanks!
    anon1
    Posts:831


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    Nov 24, 2009 04:59 PM
    • Correct Answer?
    OK, I just saw this on militarytimes.com. Looks like the healthcare debate is taking precendence? Unless something has changed?

    Story:

    By Rick Maze - Staff writer
    Posted : Thursday Oct 8, 2009 20:25:52 EDT

    A bill that would provide tax breaks to service members trying to buy or sell a home passed the House of Representatives on Thursday by a unanimous vote.

    The Servicemembers Home Ownership Tax Act of 2009 would give deployed service members extra time to qualify for an $8,000 homebuyer tax credit for first-time purchasers that expires on Dec. 1, and would exempt those forced to move by military orders from having to give back the money if they sell a home after owning it for less than three years.

    The bill also would exempt from federal income taxes the financial aid provided to service members under the expanded Homeowners Assistance Program, which helps those forced to sell a home at depressed prices because of government-ordered moves.

    The tax-free status of HAP payments would apply to any payments made after Feb. 17, 2009.

    Expansion of the homebuyer tax credit, which also applies to some Foreign Service officers and intelligence community personnel, gives anyone deployed outside the U.S. for 90 days or longer between Jan. 1 and Dec. 1 of this year one extra year to claim the credit. If married, the extension to Dec. 1, 2010, also would apply to their spouse.

    Waiver of the requirement to “recapture” the $8,000 tax credit if a home is sold within three years would apply to service members, Foreign Service officers and intelligence community employees who are ordered to a new duty station by government orders.

    The bill, HR 3590, now goes to the Senate, where it will be referred to the Senate Finance Committee that is responsible for tax-related legislation.

    That committee is tied up at the moment with national health care reform legislation and is not expected to address the House-passed tax measure until later this year.
    HAPpy
    Posts:831


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    Nov 24, 2009 06:12 PM
    • Correct Answer?
    Q. Will my Expanded HAP benefits be taxable?
    A. No. President Obama signed HR 3548, Unemployment Compensation Extension Act of 2009 into law and thereby exempted Expanded HAP benefit payments from taxation. Payments to military members are not subject to social security or Medicare taxes.
    anon1
    Posts:831


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    Nov 24, 2009 06:57 PM
    • Correct Answer?
    This is awesome!

    I do, however, wonder if there is somewhere we can actually look to see the signed bill with our own eyes? I have a small amount of faith in the Q&A section of the HAP website since they are infamous for printing answers to questions and then changing their answers on their site after "new information" becomes available. So, I'm not entirely convinced until I can look up on an official website and see it for my own eyes. Anyone know where to find such proof? I have googled and googled and all I come up with are info about the bill and the stuff I posted from October.

    Thanks, HAPpy for the post... I wish I wasn't so jaded and then I'd believe it. LOL!
    HAPpy
    Posts:831


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    Nov 24, 2009 08:09 PM
    • Correct Answer?
    The Bill is H.R.3548

    located here

    http://thomas.loc.gov/cgi-bin/bdque...:H.R.3548:

    Latest Major Action: Became Public Law No: 111-92

    text of bill

    SEC. 14. EXCLUSION FROM GROSS INCOME OF QUALIFIED MILITARY BASE
    REALIGNMENT AND CLOSURE FRINGE.

    (a) In General.--Subsection (n) of section 132 of the Internal
    Revenue Code <> of 1986 is amended--
    (1) in subparagraph (1) by striking ``this subsection) to
    offset the adverse effects on housing values as a result of

    [[Page 123 STAT. 2996]]

    a military base realignment or closure'' and inserting ``the
    American Recovery and Reinvestment Tax Act of 2009)'', and
    (2) in subparagraph (2) by striking ``clause (1) of''.

    (b) Effective <> Date.--The amendments made
    by this act shall apply to payments made after February 17, 2009.
    SEC. 15. DELAY IN APPLICATION OF WORLDWIDE ALLOCATION OF INTEREST.

    (a) In General.--Paragraphs (5)(D) and (6) of section 864(f) of the
    Internal Revenue Code of <> 1986 are each amended by
    striking ``December 31, 2010'' and inserting ``December 31, 2017''.

    (b) Conforming Amendment.--Section 864(f) of the Internal Revenue
    Code of 1986 is amended by striking paragraph (7).
    (c) Effective <> Dates.--The amendments made
    by this section shall apply to taxable years beginning after December
    31, 2010.

    anon1
    Posts:831


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    Nov 26, 2009 01:30 AM
    • Correct Answer?
    This is awesome! Now if they'd just move applications along in a timely manner, we'd be set! This is a great step in the right direction though. That tax thing may have made it so we couldn't close on our house cause we'd have to come to closing with 50-60K in taxes and we don't have that kind of money just sitting around. I'm so glad this passed before the majority of people were to start getting buyouts/payment, etc. from HAP. YAY!
    Karen
    Posts:831


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    Nov 27, 2009 08:45 PM
    • Correct Answer?
    Hi all. As far as opting for either government acquisition or selling and being reimbursed through a private sale, this is something that you must declare on your application. Should you change your mind you will have to go through the process again. Once you choose which option you want they are going to go by that decision. So weigh your pros and cons before you actually apply.

    We were contacted today to say that although our application was originally declined because of the city/county % loss, they have now said that we do qualify. We have a buyer (renting from us since last week) and our package is ready to go to benefits. Our processor said that they are coming to closing in less than three weeks turn around on these appls. Should you be asking to include house improvements in your house price it is taking longer to process.

    My adivice to all of you is to stay on top of your situation. If you are declined due to the lack of county % decline, fight it. Do your own research, get proof and then submit that proof. The company that the DOD is using to verify the figures only has about 20% of counties on file. So any information you can provide they will use. Should you still be turned down, don't give up. HAP is still waiting for the final revision and the county issue is suppose to be taken out of the equation at that time.

    We were originally turned down yet I knew from my research that there was over 20% county decline. I provided them with the proof and we are now going to benefits.

    Have a blessed holiday season to you and your families.

    karen
    JMB
    Posts:831


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    Nov 28, 2009 08:00 AM
    • Correct Answer?
    I am jumping in late to this and this is the first time I've posted here but I am stuck at a point in one of the earlier entries in this series. Is it really true that for the government acquisition you have to have a buyer? There is no reference to that on HAP's site and it doesn't make sense to me. Also, they (HAP) reference the fact that you have to prove your marketing of the house and have it priced right by the CoE automated value model which I can't find any reference to specifics for. Does anyone have experience with this, did they deem your marketing efforts reasonable?

    While I'm posting, I'll ask if anyone has liquidated enough assets/taken personal loans to sell the house "regular" bringing significant funds to the closing table (20-50K) and then applied for HAP to be partially reimbursed for covering the short sale?

    Thanks,
    Jodi
    HAPpy
    Posts:831


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    Nov 28, 2009 12:08 PM
    • Correct Answer?
    I have learned two things about HAP this week. If you were at an installation that was announced for BRAC you get 95%. Pay close attention to your application number if you are in this situation.

    The other thing is if you do a short sale and any delinquency forgiven that will be taken away from any entitlement.
    flyingj
    Posts:831


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    Nov 29, 2009 03:28 PM
    • Correct Answer?
    Jody,
    I only have an answer to your marketing question. I'm at the stage of waiting for closing (been approved by HAP). I found my buyer in three weeks. I recommend starting your list price at the hi end of price per sq footage in your neighborhood and then simply progess downward to the low end if necessary to find the market. As long as you're selling at the "going" rate (wrt price per sq footage) then you won't have anything to worry about. If you're selling price is lower than the "going" rate in your community (your realtor should help you figure this out) then you would be wise to keep on the market for at least a few months in order to defend your marketing efforts as "reasonable".
    Jodi
    Posts:831


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    Nov 29, 2009 03:41 PM
    • Correct Answer?

    You may have actually answered my other question if you've been HAP approved for government acquisition in that you found a buyer--unless yours is a short sale that you've been HAP approved for reimbursement?  If you're interested in sharing the details I think they may be helpful to us.  My email is jodiblazel@yahoo.com.  We've had the house on the market a couple of months as a short sale which NO ONE wants to deal with.  We've lowered the price significantly already...

    anon1
    Posts:831


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    Nov 29, 2009 07:47 PM
    • Correct Answer?
    Hello,

    I just wanted to mention to those out there conisdering the govt. buyout at 75% (or I believe the remaining mortgage balance).... It may be in your best interest, if you happen to have made extra payments to principal during your time in the home, to try to sell it with a realtor or by yourself first to recoup some of that extra you've put in. We put all my DH's extra deployment money toward house payments (to pay down a crazy high interest HELOC 2nd mortgage), so for us, taking what remains on our loan (or the 75%) wouldn't make sense. Just be sure you look at all you've put in (i.e. extra payments, upgrades to the house, etc.) before turning it over to govt. and walking away.

    I'm shocked there are people who have had determinations on their claims already. We applied literally the week after the president signed the stimulus (about Feb. 20th or so) and just now received a "case number". We have a buyer sitting waiting to close on the house, but we cannot close without the money from HAP. Until then, we have a renter. I guess I have no idea how they're doing it or whether those who have heard from HAP with a determination either PCS'd before us (july) or maybe got their app in before us??? How on earth are they determining the time line for processing?!?!

    Anyway, all my best....
    anon1
    Posts:831


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    Nov 29, 2009 07:49 PM
    • Correct Answer?
    I also have another question:

    We had initially put in receipts and filled in the space on the app that asks if we'd made any home improvements to our house... Since we redid the carpet and landscaped the backyard, we had about $10K in home improvements. Is that one part on the application enough for them to factor that into our prior fair market value and take it into account or are those of you who are asking for home improvement costs also sending something else in? Just curious.

    Thanks!
    JMB
    Posts:831


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    Nov 30, 2009 07:28 AM
    • Correct Answer?

    anon1--WOW!  I am shocked that you have a buyer willing to sit and wait for who knows when for HAP and a renter that is ok with the fact that they're going to have to leave as soon as it goes through--how did that work out?   I can't find a buyer willing to agree to a short sale due to the timeline much less wait for the government to come through with funds....Seriously, how did you market with the HAP situation and where?

    Congrats on getting that all lined up, that is great!

    anon1
    Posts:831


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    Nov 30, 2009 04:40 PM
    • Correct Answer?
    Thanks, JMB...

    Yeah, we kinda lucked out. Since Vegas is a mecca right now for investors, we (with the help of our realtor) found an investor who was happy we'd get a renter before we sold it and they'd essentially just take over being landlords when HAP came through. I'm not entirely sure they'll wait indeffinately though, and I am pretty sure our house value has gone down since they signed the purchase contract, so not sure how all that will play out when its time to actually close (fingers crossed).

    I think the big thing was to market to someone who either would rent to buy or an investor who just wanted a rental property to begin with. I can't imagine someone actually looking to move into a home would be willing to sit and wait. Unless they had lots of time on their hands. Especially cause HAP requires the actual purchase contract, so they'd be legally obligated to buy it, no matter how long it took or whether they found something "better".

    I'm pretty sure my realtor has done the rent to buy with another HAP house and those people are also just sitting in the home paying rent that is higher than what their house payment will be (another miracle to find someone willing to do that) for whatever length of time it takes. I think people realize the killer deal their getting on the houses in Vegas, so they're maybe more willing to wait?? We bought our house for 250K and now its worth less than 95K if that's any indication of the great deal.
    ABK
    Posts:831


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    Nov 30, 2009 06:37 PM
    • Correct Answer?

    Hi, I have HAP denial questions.....in Nov we received a HAP denial due to our county did not sustain a 10% loss. We appealed that decision and last week we were contacted that HAP had received new county data and the determinaton may change. We were then were notified via email that HAP was in the procee of "preparing our HAP benefit payment" and need our HUD-1 from when we bought our home in 1999. We faxed that in and of course were excited as we thought we were going to receive a "payment." A few days later we received a letter DENYING US AGAIN, now based on that the value of our home did not suffer a loss equal to or greater than 10%. Is HAP using the incorrect HUD-1? They are taking our HUD-1 when we bought our home 9 years ago. Our understanding is that the home loss is based on what your home was valued at the time of selling and what you eventually sold it for. We listed our home 9% below fair market value and sold it at 17% below fair market value. Is Prior market value based on our original purchase price or the selling price? The HAP expanded brochure states "include a copy of Form HUD-1 to show our selling price and documentation that the selling price was the true current fair market." Also, has anyone experienced multiple denials? We had applied in June 2009, this process has been very taxing and frustrating to go through the whole application process (just locating and copying all necessary documents was a chore) and being denied....again. Appreciate any feedback. We are in the process of contacting the Fort District for further clarification; however they are very limited in taking calls. We plan to appeal....again...and again. Thanks!

    anon1
    Posts:831


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    Nov 30, 2009 11:20 PM
    • Correct Answer?
    ABK,

    Sorry to hear of your frustration. I am frustrated as well as we applied in Feb. 2009 and haven't heard one thing on our application or elligibility. This whole process is certainly draining, especially the roller coaster. You think you have good news and something good comes out about HAP and benefits and then wham you're back to not knowing anything or, in your case, getting bad news. Urgh.

    Anyway, it is my understanding that the prior fair market value is what you purchased your home at. You have to have suffered a 10% or more loss between that value and the value you ended up selling it for. Correct me if I'm wrong, anyone. I think they're assuming in general their is an "allowable" 10% depreciation because of the terrible turn the market took and the "risk" of buying real estate. I'm not sure how they came up with that 10% thing, as it kinda seems arbitrary like most of their other guidelines and numbers. Oh well.

    Best of luck to you. Please keep us posted and anyone else who has more accurate information, feel free to chime in.
    ClearfieldJoe
    Posts:831


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    Jan 21, 2010 01:19 PM
    • Correct Answer?
    Once a "verbal' approval is received from the Savannah ACE Benefits section what is the processing time to formal approval and closing.
    anon1
    Posts:831


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    Jan 21, 2010 02:13 PM
    • Correct Answer?
    Hey, Clearfield Joe:

    I know that from the time we got our verbal approval (long before the approval arrived in the mail) it was maybe a couple months. They still needed lots of documentation that we were constantly sending in, faxing, emailing, etc. They also need to get documents from title, etc. prior to closing, so all of that can hold it up, even once you have been approved.

    Good luck to you!
    Clearfield Joe
    Posts:831


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    Jan 21, 2010 05:22 PM
    • Correct Answer?

    Did you sell under the enhanced HAP that went into effect in November or the prior HAP??  I'm hoping that the new HAP that is in effect until May moves a little quicker since you have to bring a buyer to the table upfront.

     

     

    anon1
    Posts:831


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    Jan 22, 2010 12:57 AM
    • Correct Answer?
    We sold under the expanded program for PCS. We PCS'd back in July and also sold our home that month. We just added the provision that sale is contingent on HAP funds. Buyer was willing to wait MONTHS to get this completed so it worked out well, but I know its frustrating for them too since they can't just sign the purchase contract and close within the "usual" timeframe.

    Joe and Deb - VR SAMUser is Offline
    VR SAM
    Senior Member
    Senior Member
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    Jan 22, 2010 05:38 AM
    • Correct Answer?

    Just as a comparison, if the alternative to HAP is a short sale, a short sales can take from 2 months (very optimistic) up to a year.   Both require you to come to the table with a buyer, and as you can imagine, it's very hard to find a buyer that patient.   So as frustrating a 2 or 3 months can be, it is certainly looks better than that alternative. 

    Best of luck and please keep us updated on your progress. 

    Joe

     

    Veteran Realty Serving America’s Military, Inc., VR SAM®,  is a partnership of retired Military Officers and Spouses, all Military Realtors, serving Military Families purchasing or selling homes in the Northern Virginia region including Fairfax County, Prince William County, Loudoun County, Fauquier County, Stafford County, Arlington, and Alexandria,  Many of our purchaser clients are PCSing to the Pentagon, NRO, Fort Belvoir, Fort Meyer, Anacostia, Bolling AFB, Andrews AFB, Navy Yard, Quantico, Coast Guard Headquarters, and other NOVA military installations.   VR SAM also serves a large number of defense contractor employees and Federal Employees from the FBI, NCIS, CIA and other agencies.  Call VR SAM today to learn about our industry leading purchaser client credit and competitive listing programs and rates. 

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    Joe and Deb Gladden
    703 754-3036
    Fax: 703 848-3690
    homesformilitary@vrsam.com
    http://www.vrsam.com
    Specializing in Military, Defense Contractors, Fed Employees Relocation.
    Ask us About Fawn Lake - Virginia's Best Kept Secret!
    Clearfield Joe
    Posts:831


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    Jan 22, 2010 08:43 AM
    • Correct Answer?

    Thanks for the information.  Hopefully personnel will continue to share information on the time it took for their process to complete.

    Sandi
    Posts:831


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    Feb 04, 2011 04:20 PM
    • Correct Answer?

    We used the HAP program and closed on our house in July 2010.  We just received a 1099S for the sale of the home...Proceeds from a Real Estate Transaction.  This form has the wrong closing date, wrong closing amount, and the wrong city and state of the home.  Under HR 3548, Unemployment Compensation Extension Act of 2009 (Public Law 111-92) which exempts Expanded HAP benefit payments from Federal taxes (maybe not state taxes), I didn't think we would get a 1099S.  Bottom line, need to know who to contact on finding out if we were supposed to get a 1099 and if so, how to get it corrected if necessary.

    Sandi
    Posts:831


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    Feb 04, 2011 04:22 PM
    • Correct Answer?

     Should I have received a 1099S on the sale of my house under HAP?  If so, do you know who to contact to get the closing date, amount of sale, and city/state of property correct?

    Howard
    Posts:831


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    Feb 09, 2012 10:43 PM
    • Correct Answer?
    We just FINALLY after 4 years signed a contract for sale on a house we have in Norfolk VA. We PCSed to the West Coast in 2008.
    We applied for HAP in 2009 and our app was accepted pending us finding a buyer.
    We owe $271,000 and sold at fair market price of $198,000.
    OUr file has just moved within HAP tot he beefit section.
    Does anyone who has used HAP recently know how long it will take to close? Ours is considered a Govt Aquisition since we had to find a buyer.
    Any info would be most helpful. We are so concerned about losing our buyer. We have heard horror stories about HAP funding being gone and the process taking 4-5 months.
    Thank you!
    Howard
    Posts:831


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    Feb 09, 2012 10:43 PM
    • Correct Answer?
    We just FINALLY after 4 years signed a contract for sale on a house we have in Norfolk VA. We PCSed to the West Coast in 2008.
    We applied for HAP in 2009 and our app was accepted pending us finding a buyer.
    We owe $271,000 and sold at fair market price of $198,000.
    OUr file has just moved within HAP tot he beefit section.
    Does anyone who has used HAP recently know how long it will take to close? Ours is considered a Govt Aquisition since we had to find a buyer.
    Any info would be most helpful. We are so concerned about losing our buyer. We have heard horror stories about HAP funding being gone and the process taking 4-5 months.
    Thank you!
    Joe and Deb - VR SAMUser is Offline
    VR SAM
    Senior Member
    Senior Member
    Posts:328


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    Feb 10, 2012 04:11 AM
    • Correct Answer?

    Congratulations, and thanks for your service.   The best advice I can give is to stay in contact with your HAP case manager at the regional Savannah office.   See link below.   If you used a Realtor to sell your home, they should take the lead on this and engage HAP as well, but if in doubt, stay close.   Also, much like a short sale, a lot will depend on how many files are stacked up at the regional office.  You can expect numerous request for various documents and the same for your buyer.  It is absolutely critical to turn these around as quick as possible.   Just like short sales, it is best to keep the buyer / buyer's agent in the loop.   Don't hide anything from them, nor keep info from them.  You will keep them interested / engaged by keeping them informed of the entire process.  I strongly encourage a once / week update.  This is best worked through realtors, but do stay on top of it. 

    Expect things to get messed up (requirement for duplicate paperwork) and expect some stress.  My best "guess" is something like 60 days but the caveats above apply.  Here's the link, and best of luck.  Joe

    http://hap.usace.army.mil/Contact.html

     

     

    Joe and Deb Gladden
    703 754-3036
    Fax: 703 848-3690
    homesformilitary@vrsam.com
    http://www.vrsam.com
    Specializing in Military, Defense Contractors, Fed Employees Relocation.
    Ask us About Fawn Lake - Virginia's Best Kept Secret!
    Steve
    Posts:831


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    Mar 02, 2012 11:07 AM
    • Correct Answer?
    Congratulations Howard! We closed on our HAP sale in December 2011. Our closing took quite some time, but I think 60 days is what they "advertise." We got a sales contract in August but were told that there were "Funding Delays." HAP wasn't able to give us any info on what that meant or how long this could take. I think it had to do with the change in FY and the Continuing Resolutions slowing down the allocation of funds, but that is my speculation.

    I fear that we would have lost our buyer had she not been purchasing the house to use as an income property. She was able to wait it out from August to December(with no real idea when the process would finish). What we decided to do was put the house back on the rental market before closing. HAP approved this and sent us one additional form to fill out. The buyer served as the property manager until ther date of closing, then she became the landlord. You could consider renting the house to your buyer until closing.

    Your rep in the benefit section is a great source of info. Ours was Cindy from the Savannah office and she was great. She didn't always have the answers we were looking for but worked hard to keep us up to speed on the progress of our package. I would keep checking in with your rep every week or two.

    I'll second what Joe said. We had lots of duplicate and last minute paperwork. There were also some issues with having the final docs notarized. HAP post dates the docs to match the closing date. Our notary wouldn't sign off on that. They had to change the dates to the current date. It didn't seem to have any negative impact on the outcome...just a little confusion.

    It took some patience, but it was well worth it. Feel free to email me at stevenyoude@att.net if you'd like to discuss further.

    Best of luck.
    Steve
    John From Seattle.
    Posts:831


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    Mar 05, 2012 11:58 PM
    • Correct Answer?
    I'm an agent in the Seattle area, and have closed 20+ HAP transactions.

    All HAP contracts are now being processed in Savannah now. Prior to that Sacramento was so slow it was taking over a year on Gov't Acquisition contracts to close.

    Keep you agent in the loop and copy them on all HAP emails.

    90 days is realistic closing, 60 is pushing it, and ti might be longer if Savannah now is completely slammed with offers and processing.

    Good luck

    John 206-910-0200
    http://www.thehapprogram.com

    HAP HELP ME PLEASE
    Posts:831


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    Apr 13, 2012 09:28 PM
    • Correct Answer?

     The offer on our house has been approved and is now being sent to the benefit section ( gov acquisition)...whats the process from here? Any info? Advice? Im on pins and needles til this is done. Once its in the  benefits section were you able to call your rep via phone? ...I feel everything has been email only to get to this point? any info would be helpful

    Joe and Deb - VR SAMUser is Offline
    VR SAM
    Senior Member
    Senior Member
    Posts:328


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    Apr 15, 2012 06:13 AM
    • Correct Answer?

    Howard, see the note below your post.  The best advice we can give is to contact the HAP office.  Generally, their counselors / case managers are very good about explaining the process and answering the timing questions.   Best of luck.  Joe

    Joe and Deb Gladden
    703 754-3036
    Fax: 703 848-3690
    homesformilitary@vrsam.com
    http://www.vrsam.com
    Specializing in Military, Defense Contractors, Fed Employees Relocation.
    Ask us About Fawn Lake - Virginia's Best Kept Secret!
    Elizabeth City
    Posts:831


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    Oct 18, 2012 11:25 PM
    • Correct Answer?

     We found a buyer in July 2012 and have just now closed in October 2012. That's how long it can take. Many setbacks and delays by HAP due to red tape and gridlock at the Savannah office. Be ready for lots of worrying and good luck!

    fornb
    Posts:831


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    Nov 06, 2012 02:03 PM
    • Correct Answer?
    Posted By on 11-22-2009 04:14 PM

    Go to the following website:

    http://hap.usace.army.mil/EP_PCS.html

    Read CFR 32 Part 239 and the FAQs.  If you have any questions after that, I'd be happy to assist you.



     

    Michelle
    Posts:831


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    Dec 12, 2012 04:09 PM
    • Correct Answer?
    We closed Nov. 1. Was in the process since June. Definitely need patience! Have you gotten any insight on how to handle taxes? A lot of conflicting info out there especially about some states taxing the benefit but can't find out if my state does (Georgia).
    cjimejr
    Posts:831


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    Dec 20, 2012 11:48 AM
    • Correct Answer?
    I started the HAP process on 2 July and it is now 20 Dec and we still don't have a closing date. Patience is a must during this. My problem was my HAP counselor had a James Carter and a Jimmie Carter to work on and on three different occasions our paperwork was mixed up which caused delay. I am hoping and praying this gets done before I lose my cash paying buyers.
    maureenowatersUser is Offline
    New Member
    New Member
    Posts:5


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    Oct 02, 2019 01:11 PM
    • Correct Answer?
    Posted By Anonymous on Nov 22, 2009 04:14 PM

    Go to the following website:

    http://hap.usace.army.mil/EP_PCS.html

    Read CFR 32 Part 239 and the FAQs.  If you have any questions after that, I'd be happy to assist you.


    Thanks for sharing such a beautiful link. It's really helpful.

     

    maureenowatersUser is Offline
    New Member
    New Member
    Posts:5


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    Oct 15, 2019 06:16 AM
    • Correct Answer?
    Posted By Anonymous on Nov 24, 2009 06:12 PM
    Q. Will my Expanded HAP benefits be taxable?
    A. No. President Obama signed HR 3548, Unemployment Compensation Extension Act of 2009 into law and thereby exempted Expanded HAP benefit payments from taxation. Payments to military members are not subject to social security or Medicare taxes.

    That's great.....

     



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