Service members on average have received $95,444 per household through the military Homeowners Assistance Program.
The government has initiated programs to assists veterans and service members facing foreclosure. President Obama and previous presidents, in cooperation with the Department of Housing and Urban Development, or HUD, and the Department of Defense, or DOD, jump-started these financial aid and counseling programs for distressed homeowners. Programs that have been implemented benefit veterans as well as the general population. Other initiatives include amending laws and providing free legal services to benefit service members. The veteran must still meet certain eligibility requirements to receive assistance.
Servicemembers Civil Relief Act
In 2003, President Bush signed the Servicemembers' Civil Relief Act into law. The act provides various options to ease the financial burdens of a service member ordered for active duty. These relief efforts include an automatic 90-day stay for any civil proceedings, as active-duty members can't be physically present in court. The law also protects service members from eviction, and caps interest rates at 6 percent for any debt.
Military Homeowners Assistance Program
The American Recovery and Reinvestment Act of 2009 expanded Homeowners Assistance Program, or HAP, benefits to include service members who have been adversely affected by a housing-market downturn. Eligible service members who have been ordered to relocate and need to sell their house receive a reimbursement if the home has experienced a 10 percent decrease in equity and if it was purchased prior to June 30, 2006. HAP benefits also include financial aid for the costs associated with a foreclosure and assistance with the resale of the home. The U.S. Army Corps of Engineers, or USACE, administers HAP.
Making Home Affordable Programs
The Obama Administration implemented the Making Home Affordable program to provide homeowners with alternatives to foreclosure. This program can assist veterans who are facing foreclosure to obtain a loan modification, loan refinance or, if they're currently unemployed, forbearance on mortgage payments. To be eligible for a loan modification or a forbearance, the homeowner's unpaid principal balance can be no more than $729,750; this figure is current as of December 2010. The homeowner must be able to demonstrate financial hardship, and the monthly mortgage payment must exceed 31 percent of total household income.
Stateside Legal
The Legal Services Corporation has provided funding to assist active-duty military members, veterans and military households with foreclosure counseling. Stateside Legal is an online resource that provides self-help and referrals for free legal advice. The website also has a list of helpful organizations that may assist a military family facing foreclosure. Stateside Legal is a volunteer organization consisting of private attorneys, civilian legal assistance attorneys and veteran service officers. Legal help may not be available in all states.
Tags: service members, Assistance Program, have been, Homeowners Assistance, Homeowners Assistance Program, Stateside Legal
