HAP pays 95% of Prior market value

Honolulu
Since the bursting of the Japan Bubble Period in 1990, Hawaii has suffered its longest flat, if not declining real estate market--ever. Severe economic conditions, including Leasehold conversions, movement of military housing on-base, Federal reductions-in-Force, and State lay-offs all contributed their share. However, with the announced closure of Barber's point, many qualified individuals may take advantage of a little-known haven, called the Homeowner's Assistance Program, or HAP.

HAP is administered by the U. S. Army Corps of Engineers, Real Estate Division, was triggered by the closing of Barber's Point, and applies to O'ahu only. HAP offers three types of assistance. 1) If you have been foreclosed upon, HAP will reimburse you for all costs atributed to the foreclosure. There are many other alternative solutions, and this method is rarely used. 2) HAP may buy your home from you for the balance of the mortgage plus closing costs, or pay you 75% of Prior Market Value, whichever is GREATER, and 3) If you sell your home privately, they will reimburse you, in cash, the difference of your sale price, up to 95% of Prior Market Value, plus closing costs.

Prior Market Value is determined by the HAP Administration, after review of your application, and is frequently determined to be Fair Market Value as of 1991. There is no expiration period, and application can be made even years after a sale has taken place.This applies to all federal employees, including civilian contractors and military in service as of the date of base closure.

To make an application, you will need form DD 1607, copy of your travel orders or other evidence of separation or relocation, copy of your grant deed, title policy, and other proof of occupancy at the time of base closure announcement.

Does this program make sense for you? Hawaii Real Estate Professionals works with non-profit organizations, and conducts workshops on residential real estate to provide housing counseling assistance. A complete package for application for HAP can be ordered, or a free housing consultation appointment can be made by calling (808) 487-9925.

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