Government Offers New Help to Troubled Military Homeowners

The Government has finally stepped in to assist Military homeowners in Oceanside and surrounding areas (and all the US) who owe more than their homes are worth and have received Permanent Change of Station Orders.  The Federal Housing Finance Agency recently announced changes to short sale policies to make it easier for military home owners to honor their financial agreements when they receive PCS orders.

Related: View the guideline

Military homeowners will now be eligible to sell their homes as a short sale without missing a mortgage payment.  Previously, a military home owner would have to show hardship by missing mortgage payments and/or draining their savings to compensate living in two residences.  Many military members make strong efforts to fulfill their financial obligations and are forced to rent out their homes in which market rent is significantly less than the mortgage payment in addition to paying a property manager and maintenance fees, just dumping their savings into a home. This is one of the biggest investments of a person’s life and to show default on a mortgage and/or draining a savings account for receiving orders to serve our country is purely unjust. 

Our service members should not have to be distracted and have financial hardship due to their orders to defend our country.  This policy has been long needed for local military members.

A couple requirements for the loan:

1) Service member must have a Fannie Mae or Freddie Mac loan. Service members can check Fannie Mae or Freddie Mac websites to see if their loans are held by them or they can call hotlines for military homeowners at 1-877-MIL-4566 or 1-800-FREDDIE.

2) Property must be purchased on or before June 30, 2012.

3) Service member must receive PCS (Permanent Change of Station) orders. 

4) A service member can stay current on the loan and be eligible for a short sale.

5) Fannie Mae & Freddie Mac will not pursue deficiency judgment, promissory note, or cash contribution from military member who qualifies for the above.

Previously, the only program offered to service members was the Department of Defense program called HAP (Homeowner’s Assistance Program).  This program is date restrictive and leaves many military homeowners not eligible in the current market conditions.

This announcement is a big relief to many military service members who have received PCS orders in Oceanside, Vista, Fallbrook, and surrounding areas.  Just makes their transition to the next Station of Duty much easier for them and their family, emotionally and financially. 

Liz Saldana is a Realtor with Harcourts Prime Properties and is an expert in North County Real Estate.  Keep up with Liz on Facebook and email her at Elizabeth.saldana@harcourtsusa.com to subscribe to her newsletter. She can also be reached at 760-450-7119.