Charleston, SC Posts


Assistance for Active Duty Military Homeowners

There is assistance for military personal if you need to sell your home and your home's value is less than American flagcurrent fair market value.  In the event you have a VA loan and you plan to keep your house, please contact your loan officer or contact me for a referral to do an interest rate reduction on your current loan.  You can do this without getting an appraisel. 

First is the Homeowners Assistance Program (HAP) It's headed up by the Army Corp of Engineers. HAP is a DOD program and the DOD establishes the guidelines of this program. This law that was extended recently provides for assistance to eligible federal personnel, who were stationed at or near an installation scheduled for closure or realignment and who, through no fault of their own, are unable to sell their homes under reasonable terms and conditions.


Who is eligible?

The following are general program eligibility requirements:

  • Applicants for the program must be a military member, assigned at or near the installation announced for realignment or closure. Applicants must also be the owner-occupant on the date of the announcement.


  • Personnel transferred or terminated within six months prior to the announcement of the realignment or closure who were owner-occupants at the time of transfer.


  • Civilian and military personnel on an overseas tour who transferred within 3 years prior to the announcement of the realignment or closure and who are homeowners in the area.


  • Civilian employee homeowners on an overseas tour with reemployment rights in the area affected by the realignment or closure.


  • A member of the Armed Forces who transferred from the installation within four (4) years prior to the public announcement who, because of his/her military specialty and assignment planning, anticipated repeated assignments to the installation.


  • Applicants must relocate at least 50 miles from the dwelling for which compensation is being sought.


Benefits available through HAP

The program provides assistance to eligible applicants in three ways:

  1. The Government may purchase applicants homes by paying off the balance of any mortgage existing at the time of the announcement, or for 75% of the fair market value prior to the announcement, whichever is higher. If the amount an applicant owes on the mortgage is less than 75% of the prior fair market value, the applicant may be paid the difference.

    The HAP Resale Program sells properties acquired through the HAP to re-coup costs to fund future programs.

  2. Applicants who are able to sell their homes may be reimbursed for part of their losses or paid at the time of closing in some cases.

  3. Finally, applicants who defaulted on their mortgage through foreclosure may receive assistance.

Applicants are liable for taxes on any benefits received through HAP.



Second, the Department of Veteran Affairs has issued a Compromise Sale Agreement.

If the borrower is unable to sell the property for an amount that is greater than or equal to what
he/she owes on the loan, including closing costs, VA may pay a “compromise claim” for the
difference in order to allow the private sale to go through. The borrower can sell the property to a
buyer who gets his/her own financing or to a buyer who wants to assume the loan. However,
with a compromise assumption, the lender does have to agree to have the amount of its guaranty
reduced by the amount of the claim payment.
In order to be considered for a compromise sale, several factors must be considered:

  • The property must be sold for fair market value.
  • The closing costs must be reasonable and customary.
  • The compromise sale must be less costly for the Government than foreclosure.
  • There must be a financial hardship on the part of the seller.
  • On loans that originated on or before December 31, 1989, the seller must be willing to sign a promissory note.
  • There must be no second liens or other liens (unless the amount is insignificant). In situations whereby there are second liens or other liens, the seller can request that the lienholder consider releasing the lien and converting the loan to a personal loan.
  • The seller must first obtain a sales contract in order to be considered for the program.
  • To protect the seller’s interest, the seller should make the sales contract contingent and/orsubject to the approval of a VA compromise sale.

For a copy of this 28 page document, please email me at


Contact Michele Reneau, Top Real Estate Agent, North Charleston, SC Relocation Expert, CRS, GRI, ABR. Licensed Realtor® in South Carolina at 843-572-0518 to list your property for sale or to purchase real estate in Charleston, Goose Creek, Summerville, North Charleston, Hanahan, Mount Pleasant neighborhoods and the surrounding areas in Charleston County, Berkeley County or Dorchester County, South Carolina.  Featured on HGTV's House Hunters. Publisher/Author for Charleston Real Estate Update  including featured listings and sold properties, and monthly statistics on Charleston Real Estate MarketRESA 2009 Staging Realtor of the Year Nominee. The Charleston Relocation Expert specializes in military relocation, first time homebuyers and creating marketing exposure to sell your home in the Charleston SC Real Estate market.  I can also be contacted by email at To view all Charleston Metro area houses for Sale Click Here and then click on Search for Homes.  With over 25 years of Lowcountry Living, I know the Charleston Metro area. I will help you get your home sold and/or help you buy your Charleston home or land.

Michele Reneau, ABR, GRI, CRS

Follow us on Facebook at

Comment balloon 5 commentsMichele Reneau • March 28 2009 04:58PM
Assistance for Active Duty Military Homeowners
There is assistance for military personal if you need to sell your home and your home's value is less than current fair market value. In the event you have a VA loan and you plan to keep your house, please contact your loan officer or contact me… more
Do I really have to paint?
The biggest resistance to staging recommendations usually surrounds painting. It is interesting to me that sellers resist painting and then they wonder why a buyer can't overlook it. Fact of the matter is that painting is tedious work and buyers… more
Welcome Home a Hero --Our soliders
If you would like to support our troops when they return home to Charleston, SC from an overseas tour, please continue reading. As information becomes available on soldiers returning home, date and time will be published and we'll request… more
Who can take advantage of the $8000 credit? - It's not just for 1st…
The $8000 "FIRST TIME" Home Buyer Tax Credit in not just for your traditional first time homebuyer. Anyone who has not had any ownership interest in a home in the last 3 years qualifies! If you previously owned a home but have not owned… more