A&FRC provides guidance, answers to homeowners' questions

  • Published
  • By Eric Pedersen
  • Airman and Family Readiness Center
MOODY AIR FORCE BASE, Ga. --  Many military homeowners are trying to make the decision to sell, to rent or to let the bank repossess their homes--often because of a permanent change of station move.

Other decisions include leaving the family behind for an unspecified period of time, separating from the military, trying to find a second job or even asking a spouse to work.

The American dream of owning a home seems to be turning into a nightmare for many families, but there are ways to help.

According to a recent survey, home foreclosures in Georgia increased 31 percent from 2006 to 2007.

Although the Georgia estimate is much lower than many states, military homeowners find themselves affected and often cannot 'ride out' the gloomy real estate markets until home values recover.

Many states claim that in areas surrounding military installations, the foreclosure rate is four times the national average.

Foreclosure situations tend to restrict family mobility, which can increase financial stress and can subsequently result in family stress. It can also damage credit ratings and can cause family separation.

This can affect a servicemember's ability to perform the mission and may set the tone for negative personnel actions. Retention may be affected as well.

A recent expansion of the Homeowners Assistance Program by the American Recovery and Reinvestment Act of 2009 provides some relief.

There are three qualifying situations where relief is available: a PCS move, a Base Realignment and Closure move and moving because of an injury or death of a servicemember.

The benefits of the program offset some of the losses incurred when homes are sold, purchased by the government or foreclosed.

Applicants should understand that an approved HAP claim and benefit will still result in some financial loss. The program attempts to reduce the magnitude of the housing sale losses to a level that does not wipe out an individuals' finances and credit.

You can find out if you qualify and for more information, visit the Army Corps of Engineers Web site at hap.usace.army.mil.

In some situations, the HAP may not provide a perfect answer as it only offsets the amount of loss. Every situation is different and every family has individualized needs.

Individuals who bought their homes before entering military service qualify under the Servicemembers Civil Relief Act, which may reduce the interest rate to 6 percent on pre-service loans and obligations (if the current mortgage is more than 6 percent).

If the servicemember is unable to make payments on the loan due to military service, the provision prevents the vendor from exercising any right under the contract to rescind or terminate. The provision also prevents vendors from taking possession of the property when installment payments are not paid or to breach the terms, except by action in a court of competent jurisdiction, until nine months after the term of active duty terminates.

There are refinancing options offered by banks and mortgage companies and new legislation is being developed.

For those who choose to rent out and move on, there is still the option of being a property owner and building wealth through real estate. Real estate is still a good investment over the long haul.

To make an informed decision about financial investments, set an appointment to see a unit consultant at the Airman and Family Readiness Center by calling (229) 257-3333.