The housing crisis this country is currently faces is affecting almost everyone in one way or another, including military families. For those military families who purchased their homes with a Department of Veterans Affairs (VA) home loan, there is help to avoid foreclosure if they begin having trouble with their mortgage. The Homeowners Assistance Program was developed by the Department of Defense (DoD) to help service members facing closing bases and/or realignments. More specifically, it helps them sell their home, which has lost value because of these situations. This program has since been amended to include those DoD families whose solider was either injured or killed while deployed.
There are two options available under the program. The government may purchase the families’ home for 75% of either the original price of the home or whatever balance is left on the mortgage. The other option pays the difference between 95% of the home’s appraised value prior to the announcement of the base closing and either the home’s appraised value or sale price after the announcement.
There are also options available for those soldiers given orders for a permanent change of station who are suffering a home that has lost value because of this mortgage crisis. Of course, there are specific qualifications to qualify for such relief.
There were about 20,000 families with VA home loans who lost their homes to foreclosure last year. Approximately 12,000 DoD families applied to the Homeowners Assistance Program for help. A slowing in requests for help is not likely as foreclosures in zip codes rose 32% between 2008 and 2010, which is a full 11% above the national rate for foreclosure filings.
If you are a disabled veteran who has been denied disability compensation or have not yet applied for benefits from the VA, contact LaVan & Neidenberg. You may be entitled to certain programs and benefits so contact our veterans disability rights firm today.