Search Results for: hap gaps

Eglin AFB – HAP GAPS Ends – 2 Options Still Available

Eglin HAP

If you are an Eglin Air Force Base or Hurlburt Field seller thinking about HAP, (military Homeowners Assistance Program), you may not be aware that effective February 1, the GAPS (Government Assisted Private Sale) has ended.  Since we are talking “military”, there are a lot of acronyms, so I’ll start with a quick explanation.  HAP is the program run by the Army Corps of Engineers that was expanded to assists U.S. military service members  who have Permanent Change of Station (PCS) assignments, with “upside down mortgages” avoid foreclosure or short sale. Basically, HAP will cover the shortfall (part of mortgage balance left over after net proceeds from sale) at closing if the service member qualifies for the program.

Formerly, there were three types of HAP sales: Government Acquisition, Private Sale, and Government Assisted Private Sale (GASP).  Here is a quick, simplified explanation of each:

Government Acquisition: The U.S. will buy the subject property from the qualifying service member, and simultaneously pay off the mortgage balance not covered by the sale, selling the property to the buyer the service member found (normally through his Realtor).

Private Sale: The qualifying service member sells his home and covers the mortgage shortfall himself. The U.S. will reimburse the service member some time after closing.  The reimbursement calculation is simplified as: 90% of your prior fair market value (your purchase price plus costs of improvements), add  7% for closing costs, then subtract out your new purchase price and mortgage payoff, plus any buyer credits and actual closing costs.  Using this private sale method, some military members can  recoup more of their lost equity, dollars they have actually used for downpayment or improvements, as compared to the Government Acquisition, which will just pay off the mortgage deficit.  The caveat with Private Sale, is that you would have to cover the entire shortfall at closing, then “wait” for the U.S. reimbursement check.  That process can  takes weeks or months.

Government Assisted Private Sale (ended): Instead of waiting for your U.S. reimbursement check after a “Private Sale”, you were paid by the Government at closing.  This program has ended, effective February 1, 2012, per my contacts at HAP. In fact, my latest HAP closing on January 31, was a GAPS, and we were told any extensions to the closing date would remove the seller from the program.

So, what does this mean to you, the Eglin AFB or Hurlburt Field airman?  You still have two HAP options available, Government Acquisition or Private Sale.  In any event, the good news is that if you need to sell your home, and qualify for HAP, you can avoid foreclosure, short sale or VA Compromise Sale, and keep your credit score intact.

Do you have questions? Email me at

It’s Wendy!

Wendy Rulnick, Broker, Rulnick Realty, Inc.

Call toll-free 1-877-487-9639 or local 850-650-7883 ext 204
Email Wendy:

Eglin AFB and Hurlburt Field VA Compromise, HAP, Short Sale Help

Eglin AFB HAP PCS Private Sale – Can Put Cash in Your Pocket

Eglin HAP agent 
Did you know you don’t have to be “upside down” in your mortgage to use the HAP program? That’s right! Military members who PCS’d from Eglin Air Force Base, Hurlburt Field, Duke Field or Whiting Field should know their options! Most people think HAP is only used to avoid short sale or foreclosure when the airman, marine or army member is PSC’d (Permanent Change of Station) and must sell. This is not the case. I’ll explain that in a moment, but first, here is a review of the basic criteria to us HAP.
1.      The home was the primary residence at time of PCS orders.
2.      The market value of the property has dropped at least 10% since the original purchase.
3.      Orders to move were dated between February 1 2006 and September 20, 2010.
4.      The home was purchased or purchase contract was entered into prior to July 1, 2006.
5.      The service member’s PCS orders were for a move at least 50 miles away from the previous base.
There are two ways to use HAP as of today. The third option, Government Assisted Private Sale (GAPS), where the service member could get a check at closing in some cases, unfortunately ended in January 2012. (In fact, I had a HAP GAPS closing in Navarre Florida on the last day of the program.) What are the two remaining HAP options?
1.    HAP Government Acquisition– In a nutshell, we list your Navarre, Crestview, Destin or Fort Walton Beach home for sale and find you a buyer. You enter into a contract with the buyer “contingent on HAP approval”. The U.S. Government then substitutes that contract with their own, pays off your upside down mortgage, and sells the home to the buyer we found.
2.      HAP Private Sale– We sell your home. If you are upside down in your mortgage, you bring the funds to closing or do a short sale. The U.S. Government will then either reimburse you based on their calculations, re-pay your VA entitlement if it was a VA Compromise Sale, or simply pay you if you were not in a short sale or foreclosure situation.
That’s right! You do NOT have to be upside down, facing foreclosure or trying to avoid a short sale to  use HAP. In fact, I’ve worked with Eglin Air Force Base personnel who had no mortgage use the HAP program to recoup some of their lost market value and put cash in their pocket! What is the calculation for a HAP private sale? You will get 90% of your prior fair market value (include your cost of verifiable home improvements) plus reasonable closing costs reimbursed to you. Here is an example:
Your home Prior Fair Market Value       $200,000
Cost for adding swimming pool                    $30,000
90% of $230,000                                                  $207,000
Sell your home for                                                $130,000
HAP Benefit                                                                   $77,000
Closing Costs 7%                                                           $9,100
In this case, you would get a check from HAP for $86,100 after closing per current HAP guidelines.  In fact, I have a seller who currently has no mortgage using the HAP program, and getting pre-approved for his post-closing benefits as part of his contract contingencies. So, if you thought HAP was only to avoid short sale, think again. This opportunity is really a gift, and the funds may run out.  If you PCS’d from Eglin Air Force Base or Hurlburt Field, and have a home in Navarre, Destin, Fort Walton Beach, Crestview, Milton or Santa Rosa Beach Florida, call or email me to discuss your options at or 850-650-7883.

It’s Wendy!

Wendy Rulnick, Broker, Rulnick Realty, Inc.
Call toll-free 1-877-487-9639 or local 850-650-7883 ext 204
Email Wendy:

229 Moriarty St., Fort Walton Beach FL – HAP Home


How about a big yard in the heart of Fort Walton Beach Florida? This Vesta Heights HAP home has distinctive feautures, like decorative archways and hall entries. There are lovely wood laminate floors in living room and hallway. The kitchen is tile, tile, tile, with tile counters, backsplash and floor! The dining room floor has an elegant design. Passthrough to living room, breakfast bar and stainless appliances. The master bedroom has large walk-in closet, attached master bathroom with double vanity sinks and tiled tub/shower combination. This sale is contingent on HAP approval.

If you are buying a HAP home in the Eglin Air Force Base area, expect to wait 60-90 days for approval of your contract.

229 Moriarty St., Fort Walton Beach FL – HAP home offered for sale for $122,900

How to Buy an Eglin AFB HAP Home.

HAP Government Assisted Private Sale (GAPS) Ends

HAP or VA Compromise Sale?

How To Write a Contract for an Eglin AFB HAP Home

Eglin HAP PCS 

As an Eglin AFB area agent who specializes in HAP listings, I frequently receive contracts from agents who are not familiar with the HAP program.  Since our Emerald Coast area is home to Air Force, Navy, Army and Marines at Eglin AFB, Hurlburt Field, Duke Field, Whiting Field and Camp Rudder, you will find several listings that are sale type “HAP” when searching the Emerald Coast MLS.

 If a HAP home seems right for your buyer, what do you do?

First, know what HAP means.  It is the Homeowners Assistance Program for the Department of Defense.  HAP helps military members who have orders to relocate, but own homes with negative equity, cover their mortgage losses in order to sell.  The HAP program was expanded in 2009 to help Wounded Warriors, Surviving Spouses, BRAC-impacted service members and PCSing service members.  If the service member qualifies, HAP will pay their mortgage deficit at closing.

How does HAP benefit your buyer? AP HExplain to your buyer why HAP is more favorable than buying a short sale. With HAP, the waiting time is normally 60 days for final approval, and 30 days to close. That is better than a short sale which could take 120 days or more for approval.  And most HAP sellers have been pre-approved for the HAP program, which  will save even more time.  (Ask the listing agent to find out.)

What do you put in the HAP contract?  Specify that it is “contingent on HAP approval”.  Use a date-certain closing date that is 60 days out.  I know, this seems to contradict that HAP wants 60 days for approval, but they also want a 60 day closing date written in the offer (not closing “within 30 days of HAP approval”).

Price?  HAP wants contracts that are near fair market value.  They will validate pricing through their internal system, and also via the listings agent’s market analysis.

Terms? HAP contracts should be “as is”.

Closing cost assistance?  HAP may pay some of the buyer’s closing costs. It depends on what type of HAP program the seller is using.  If it is a HAP GAPS (Government Assisted Private Sale), where the seller is getting a reimbursement, your buyer may not be able to get as much closing costs paid as a GA (Government Acquisition).    

What’s next? Depending on what type of HAP sale is best (GAPS or GA), HAP may replace your contract with a new one that is between the United States and your buyer.  If there is a replacement contract, your buyer can pick his own title agent. The U.S. will simultaneously buy the house from the seller and sell it to your buyer on the same day.

Finally – congratulations are in order!  You’ve found your buyer a new home in Crestview, Navarre, Fort Walton Beach or Destin Florida, had a quick closing and helped a U.S. military member with the HAP program!

 It’s Wendy!

Wendy Rulnick, Broker, Rulnick Realty, Inc.

Call toll-free 1-877-487-9639 or local 850-650-7883 ext 204

Email Wendy:

Destin Short Sales & Pre Foreclosure Help.

Read Wendy’s Destin Real Estate Blog


You Should Consider HAP for Eglin PCS to Avoid Foreclosure or Short Sale

Eglin HAP agent


HAP is the Homeowners Assistance Program that helps Eglin Air Force Base or Hurlburt Field airmen PCSing to new bases who have upside-down equity in their homes. That is, their mortgage balances are more than the fair market values of their properties. HAP helps those military members who are ordered to transfer to new bases avoid foreclosure, short sale and VA Compromise Sale by paying off the mortgage balance not covered by the sales proceeds due to declining market values.  If you qualify for HAP, there are three main programs for assistance:  Government Acquisition (GA), Government Assisted Private Sale (GAPS), and Private Sale (PS).


In this article, we’ll example the Government Assisted Private Sale (formerly called Private Sale Augmentation).  Will it work for you? Let’s see….


GAPS is a more complicated HAP program, but you could end up putting dollars in your pocket if the calculations work in your favor. To figure out how much of your mortgage and closing costs it will cover, HAP calculates  90% of your prior fair market value (your purchase price plus costs of improvements), adds about 7% for closing costs, then subtracts out your new purchase price and mortgage payoff, plus any buyer credits and actual closing costs.  If you have put enough improvements into your home, or the purchase price is high enough, or your mortgage payoff low enough, that’s where this program makes sense – your mortgage and closing costs will be covered and you get money back at closing. Let’s look at an example.


For our example, let’s start with these numbers.


Original Purchase Price             $300,000

Improvements                             $20,000

Total Prior Fair Market Value    $320,000 (PFMV)

PFMV $320,000 x 90% =              $288,000 (HAP benefit)

Sale Price                                    $200,000

HAP Closing Cost Estimate       $14,000 (sale price x 7%)

Outstanding Mortgage               $250,000

Seller Subsidy,Closing Costs    $7000
Now, to put our calculations together….

Property Benefit = .90 X 320,000(PFMV) = 288,000 – 200,000 (sale price)  = $88,000 (property benefit)

Estimated HAP Benefit = 88,000 + 14,000 (est closing costs)  = 102,000
Cash to Closing = (200,000 purchase price  + 102,000 = 302,000) – (250,000 mortgage balance  + 7,000 seller subsidy = 257,000) = 45,000
SELLER GETS $45,000 Back at closing!


How would the GAPS HAP Program not work for the Eglin AFB Service Member? Let’s alter the numbers, and pretend the outstanding mortgage balance were higher, let’s say $285,000, and the sale price lower, like $180,000, and all the other numbers were the same.


In that case:

Cash to Closing = (180,000 purchase price  + 102,000 = 282,000) – (285,000 mortgage balance  +7,000) = 292,000) =  -10,000 Uh Oh!! Seller would have to bring $10,000 to closing! This GAPS program would not work to the benefit of the Eglin or Hurlburt airman.


What’s the alternative? Use the standard HAP Government Acquisition (GA) program. In the GA program, HAP will simply pay off the mortgage balance at closing, plus 3% buyer credit of allowable closing costs.  There would be a closing first between the U.S. and the service member, then a same-day closing between the U.S. and the buyer the service member found through his Realtor who specializes in HAP.


There are more detailed criteria that apply to each HAP scenario.  If you are PCSing, need to sell, and want to avoid foreclosure, short sale or VA Compromise Sale, HAP may be your best option.  Questions?  Give me a call.

It’s Wendy!

Wendy Rulnick, Broker, Rulnick Realty, Inc.

Call toll-free 1-877-487-9639 or local 850-650-7883 ext 204

Email Wendy:

Eglin AFB Short Sales & Pre Foreclosure Help.

Read Wendy’s Eglin AFB Real Estate Blog