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Experiences with HAP
Last Post Dec 18, 2009 10:15 PM by timesurfer7. 10 Replies.
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Angela
Posts:831


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Nov 23, 2009 08:41 PM

    I would love to know what everyone's experience has been with HAP.  When explaining, please post the district which is processing your application.

    anon1
    Posts:831


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    Nov 24, 2009 04:50 PM
    We sent in our app in Feb. 2009 as soon as the stimulus passed.

    We sold our home (actually, since its about 180K LESS than what we owe, our sale is pending awaiting HAP's payment to close) in June 2009.

    PCS'd July 2009.

    Just received a notice yesterday from HAP that we now have a "case number" but that it does not in any way imply benefits or elligibility or queue in the line of applications. Urgh.

    We're in the Sacramento district. They've always been friendly when we've called, but have never been able to give us a lick of information on our particular case, so not entirely helpful.
    Angela
    Posts:831


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    Nov 24, 2009 08:06 PM
    Anon1,
    Was your sales price within 10% of the current fair market value meaning the price at which your realtors thought your home should sell for?
    anon1
    Posts:831


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    Nov 26, 2009 01:26 AM
    Well, we listed with a realtor initially for 120K but it sat there without any looks for over a week and the assessment our realtor did was between 99K-120K we could ask based on the going rate of houses in our area, floor plans, etc.

    Since we wanted to get rid of it fast with our upcoming PCS, we then lowered it to 99K. It had some showings for a few weeks and then sold (contigent on HAP to close) for 93K. So, I guess we did sell it within 10% of what she assessed it at. Is that what you mean? Since then, however, the houses have gone down in value even further. SO, this means that hopefully the buyer is still willing to pay the 93K even though the house is probably worth less than that.

    I know part of why we had to accept this lower offer was because no one else who looked at the house was willing to wait indeffinitely for HAP to come through in order to close. Its not feasible to ask full sale price without any incentive for someone to sit around for MONTHS waiting to get into a home. So, we thought lowering it a bit to take into account the length of waiting the buyer would have to do was reasonable. I do hope HAP sees it that way, but the market analysis at the time does prove that houses around ours sold and were selling for around that price range so it may be a mute point.

    I'm really interested to see what experiences other have had with HAP thus far....
    anon1
    Posts:831


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    Dec 04, 2009 12:17 PM
    Hello, Angela...

    Looks like there have been a lot of looks on this topic, but not many posting their experiences. Bummer. Maybe more to come? I'd really be interested in those who have actually heard/gotten something from HAP.

    Just an update with our situation, after them loosing the purchase agreement we sent them in July when house sold, we faxed them the agreement again a few days ago and they DID get it. They forwarded it to a realty specialist who has actually already contacted us and let us know all that's left for our app is an estimated HUD-1 from the sale of our home. Since we've not closed yet, the title company is just putting in an arbitrary date and hopefully sending this to my realtor (and then to me) today. I will fax it to HAP and then the realty specialist said after that doc is received turnaround is "relatively quick". Not sure what that means exactly, but it sounds good.

    Anyway, just an FYI to those who are still getting their apps ready... You will likely be asked for the HUD-1 statement (or an estimate if you need HAP funds to close) and its also a good idea to send in any receipts for upgrades to the home if you're claiming them with your prior fair market value. We sent in receipts for recarpeting our home and landscaping the backyard. We also sent in receipts for ceiling fans and window treatments since the house didn't have these things and they were sold with the home, but I'm not entirely sure they'll include those sorts of things.

    Anyway, just an FYI to those who are still working on their apps or needing to gather info. Those documents are helpful.

    Angela, where are you at in the process? Have you had more interest after dropping the price on your home? Have you looked into just doing the govt. buyout at 75% or remaining mortgage since you have had it on the market much longer than the 120 days required?

    Cheers!
    ANGELA
    Posts:831


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    Dec 05, 2009 10:38 AM
    anon1,
    No more interest as of today but it is an extremely bad time of year to sell. The fact is, our house was on the market way too long at too high of a price. We new it was too high, but without HAP happening, there was nothing we could do except sit and wait. A short sale was not an option because our credit union would have tied the loss into a personal loan which we can not afford. They weren't willing to forgive any debt.

    We didn't feel comfortable in advertising it with HAP because we just weren't sure how it would all work out. My realtor feels we should have gone $10,000 lower than where we are now. I just didn't feel comfortable with that since we are now listed at current fair market value which we came to by paying for an appraisal. My way and we have some negotiating power, her way and we would lack negotiating power. After all, the home has to sell within 10% of its current fair market value in order to qualify for HAP. Our counselor at HAP has indicated to us as well, that our asking price is fair based on the appraisal we had done and he has been most helpful in ensuring that our ducks are in a row with all of our paperwork. We know from him that all we are missing is the offer and any required documentation that goes along with the offer.

    A government buyout still requires a buyer under the Expanded HAP or at least that is what I have been told and what I have read. So either way, we are stuck waiting and most of all praying for a buyer. You can see our house at www.reeceandnichols.com MLS #50774 or at http://picasaweb.google.com/jatmgar...edarLane#. It really is a beautiful home.
    Angela
    Posts:831


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    Dec 05, 2009 10:51 AM
    anon1,
    I fotgot to ask, is HAP going to provide you with HAP funds to close or are you looking at a reimburesment? We need HAP funds to close (if we ever sell!) but have been told that we would have to come up with the money (short term loan from my parents) and then HAP would reimburse us. I would feel more comfortable having the HAP funds right at closing. I don't feel comfortable borrowing from my parents, then taking the chance that we'll for sure be reimbursed by HAP.
    anon1
    Posts:831


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    Dec 05, 2009 04:51 PM
    Angela...

    I will be checking out your link, but wanted to quick post. I had thought the 75% or paying off your mortgage from HAP did not require you to find a buyer, but to show that you took all the steps in listing and marketing it and it still didn't sell after 120 days. If you have to privately sell it or find a buyer, how is that any different than the private sale option, which gives you 90% of the pfmv?

    With regard to our situation. We put in the sales contract that we will not close until HAP comes through with funds and that both parties are allowed to back out at any time before this. Our realtor is working with several HAP houses and so are people in her office, so they figured out a way they word this on the addendum to the sale. Its risky since buyer may back out if it takes too long, but still worth it to have a buyer and be able to get the papers into HAP. As far as closing, we cannot possibly close before we receive HAP funds (as put in the contract), since we'd have to come with upwards of $150K, which even our family members/friends couldn't loan us. I think we're not the only ones in this situation where they have to have HAP funds to close, but I would stil suggest calling your local HAP branch and seeing what they do in this case. Please post if you hear otherwise. Sounds like there is a lot of conflicting information floating around in the HAP-world so I wouldn't take anyone's word for truth personally until you have a check in hand. Just my opinion, but again, I'm kinda jaded by them loosing our documents time and time again and drawing this all out for EVERYONE for so long.
    anon1
    Posts:831


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    Dec 18, 2009 05:11 PM
    Hey, Angela (and anyone else listening):

    So, we're nearing the closing on our HAP... Somehow, once we actually got in touch with someone at the Sacramento office and have been pestering her almost daily, faxing stuff, notarizing stuff, etc. almost daily, we've begun to move on our sale that was done in June. She did say not to expect our check until the new year though, so we're still not there.

    Anyway, I did want to tell you after I've read over our final close of escrow instructions from the army corp of engineers, that they do require we bring anything that won't be covered by HAP's determined payment and the buyer's payment to closing. If there is a surplus (as we've paid extra principal throughout the years and with upgrades to the home), the title company is instructed to pay that to us. The check from HAP goes directly to the title company, as will the buyer's money. At that time, we either would have to have the funds to make up any difference or nothing, if we've paid enough to cover the difference.

    The way they told us it works is that basically all checks show up at the title company at the same time (or they TRY to get it that way) and a closing date is chosen with papers signed, etc. The instructions clearly state that if for any reason the seller cannot complete the sale with appropriate funds, etc., any money from ACE gets sent back to them and the sale is basically void (I paraphrased all that). So, essentially, you would have to come to closing with that extra money. I know a couple other people in your situation that will likely be taking out a personal loan to make up the difference in order to close.

    Anyway, not sure that's all that helpful, but as we're closer to our close date and are finally getting somewhere on our application and should expect our check and closing next month, wanted to just keep you posted on what I've read.

    It really is too bad they don't share with people the "final escrow instructions" at the beginning of the process, as it would probably clear up a LOT of what happens and in what order, what is expected from both parties, etc.

    ... But I guess that's what this forum is for.

    Best wishes....
    anon1
    Posts:831


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    Dec 18, 2009 05:15 PM
    One other thing I know we've touched on is to SHOW YOUR UPGRADES to your home! We had done our landscaping and re-carpeted, along with ceiling fans and we turned in all those receipts. They were all factored into the initial price of the house, then the 10% was taken from that. So it may make a huge difference if you put a lot into your home.
    timesurfer7
    Posts:831


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    Dec 18, 2009 10:15 PM

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