Eglin workshop addresses foreclosure issues Published Aug. 25, 2009 By 2nd Lt. Andrew Caulk Team Eglin Public Affairs EGLIN AIR FORCE BASE, Fla. -- An Eglin workshop was held to help military members cope with frequent moves, low home resale prices, and foreclosure. The class explained programs to help relieve burdened homeowners such as the Housing Assistance Program. Congress authorized an expansion of the HAP with funds from the American Recovery and Reinvestment Act, granting $555 million to help military members sell their homes when they make a Permanent Change of Station. · Restrictions under the expanded HAP require: · Reassignment to a location more than 50 mile from previous duty station · Reassignment between Feb. 1, 2006 and Sept. 30 2012 · Home purchased before July 1, 2006 · Home sold between July 1, 2006 and Sept. 30, 2012 · Home was primary residence of the owner Capt. Hugh DeBose from the Legal Assistance office informed, if members qualify for the program and sells their house, they would receive 95 percent of the fair market value calculated at the time they bought their house. The Secretary of Defense sets fair market value for this program. If the member cannot sell their house on the market, the government will buy the house at 90 percent of the fair market value or pay the remaining mortgage, whichever is less. Another consideration is members must pay taxes on the difference between the current value of the house and the amount the government grants, said Captain DeBose. For example, if a house is currently valued at $150,000 but was previously valued at $200,000 and the member sells it on the market, the government would give them $40,000 to reach a 95 percent value. That $40,000 counts as taxable income and would show when filing taxes. At this time, the program was authorized $555 million, but no money has been allocated. The Army Corps of Engineers is taking applications at this time though they have not paid out any funds. Captain DeBose also suggested members apply for the program either through the base housing office or at http://hap.usace.army.mil/. Legal Services of North Florida, Inc. spoke at the workshop and offered information regarding foreclosure. They are a non-profit organization dedicated to providing legal services to those who cannot afford them. In this case, their services apply to base employees experiencing foreclosure. Here are some tips they gave about foreclosure misconceptions: · A service of a summons does not mean you have to move immediately. · In Florida, a judge must enter an order permitting the clerk to sell your home on the courthouse steps. · You cannot go to jail because you have not paid your mortgage. Deficiency judgments are rare. · Being behind on your payments does not mean you have no defense against a bank. In addition, they gave the average foreclosure timeline so people know when they actually would have to leave in the case of a judgment against them. Timeline: · Notice of Default/Acceleration of Debt · Service of the Complaint · Summons will contain the clerk's seal date of filing and the date of service · Answer and Defenses-20 days to file a response · Motion for Summary Judgment · Final Judgment · Clerk Sale · Writ of Possession · Process takes between 70 to 85 days at the earliest - usually much longer According to the legal advisors present at the class, when receiving a notice of default, act immediately and attempt to work a settlement or refinancing option with the bank. Oftentimes, the bank does not want yet another house in foreclosure and may frequently work with the owner to decrease payments. Also, foreclosure is not a member's only option. A forbearance, modification, refinance, sell (Short), Deed in Lieu may also be workable solutions for the bank. The advisors also suggest, when the court serves the complaint, members should seek legal assistance immediately if they haven't already. Members should also maintain a log and file of every call and correspondence with their lender. Even after foreclosure on the home, members can still redeem their loan by selling or refinancing. The writ of possession is the actual document that requires a member to move within 24 to 48 hours. While foreclosure is a serious problem, assistance and advice are readily available. For more information regarding foreclosure, contact the base legal office or Legal Services of North Florida, Inc.