Help available for military hit by housing market

Housing experts said some military families are finding themselves in a precarious situation when it comes to selling their houses and relocating, according to a recent Army News Service release.

Edmond Hackett, a housing management specialist with Belvoir's Housing Services Office, said some servicemembers bought homes at the height of the market and, now, because of permanent-change-of-station orders, have to sell in today's lower market.

"It's a reality in this area and all over. There are a lot of foreclosures and this is affecting our Soldiers, too," Hackett said. "Many sellers can now expect to sell below their purchase price."

Servicemembers who rent may find they are not immune to the effects of foreclosure either, said Hackett's co-worker, Shawn Walters.

"In the past couple of months, approximately five Army families have had to deal with losing the homes they were renting when the owners faced foreclosures,"
Walters said.

The good news is Army Emergency Relief provides a port in the storm for those hit by the crunch.

Although there are no specific programs to help Soldiers when they are behind in their mortgage, AER is an avenue for assistance in this tough market, said Dennis Scott, AER's assistant secretary of administration.

"Since the housing market crashed, we are looking at housing differently," Scott said. "Multiple-home ownership used to be considered a business venture and AER doesn't assist in that; but, now, we realize it might be because of an inability to sell in one location."

When applying for assistance at AER, it must be a solution to the problem, not a partial fix, Scott said.

"If you need to catch up on your mortgage and, once caught up, you can continue to pay because of a new job or a raise, that would be a solution. If you have a buyer and need to pay back-payments prior to selling, that would be a solution. These would be good examples of how AER could help," Scott said.

In 2005, AER provided a total of $44 million in assistance; and, in 2008, provided a total of $82.9 million in no-interest loans. The increase is mostly due to the economy, Scott said.

Additionally, the president and Congress have not overlooked the unique situation faced by servicemembers. The new economic stimulus package includes
provisions to help military homeowners facing losses in the housing market.

Congress passed the American Recovery and Reinvestment Act of 2009 on Feb. 13 and President Obama signed it into law Feb. 17.

Under the new provision, the government will cover 95 percent of the amount lost when forced to sell. The provision now applies to servicemembers who PCS more than 50 miles outside their current installation and need to sell their homes.

"One good thing for these families is that, now, the government will move them. That's a big change from the past and is a real help to the families," Walters said.
An attachment to the Joint Federal Travel Regulations added about five months ago authorizes a local or short-distance move of household goods for
servicemembers forced to relocate because the home they were renting is in foreclosure.

The stimulus package extends the DoD's Homeowners Assistance Program by $555 million. HAP was originally designed to assist Soldiers who face a financial loss when selling a home in an area where real estate values have declined, due to an installation closure or realignment.

The provision does have some limitations. The program only applies to servicemembers who purchased their homes before July 1, 2006, which is roughly the time when the housing market started to decline.

While housing services, AER and Congress have provided some relief and assistance, experts offer caution before entering into any housing contract.

"Pay attention to leases, work with reputable realtors and have a staff judge advocate office look over all contracts before you sign," Walters said.