Servicemembers can get help with mortgage problems Published April 2, 2009 4th Fighter Wing Legal Office SEYMOUR JOHNSON AIR FORCE BASE, N.C. -- Many programs are available for military members facing credit-wrecking foreclosures. The Homeowners Assistance Program - originally designed to protect servicemembers from real estate losses associated with base realignments and closures - has been extended to include losses associated with traditional permanent changes of station. Although exact details have not been announced, this program can offset up to 95 percent of losses, enable the government to purchase servicemembers homes at 75 percent of the home's appraised value, or provide additional benefits. To be eligible, servicemembers must be ordered to move more than 50 miles, receive orders between Feb. 1, 2006, and Sept. 30, 2012, have purchased their home prior to July 1, 2006, sell their home between July 1, 2006, and September 30, 2012, and not have previously received payment under the program. If servicemembers want to stay in their homes, but are having trouble meeting their mortgage obligations, they may try to refinance into a secure mortgage through the Department of Housing and Urban Development's Hope for Homeowners program. Servicemembers may also receive relief by negotiating with their lenders to set up new payment plans, mortgage modifications or claim advances. If servicemembers are not able to stay in their homes, there are other options short of foreclosure. Prior to foreclosing, a lender will often provide a specific amount of time to sell the home in question. If the home cannot be sold through a traditional sale, servicemembers may try to sell a home through a mortgage assumption. An assumption occurs when a qualified buyer assumes a mortgage and the remaining loan payments. When a traditional sale or mortgage assumption is not possible, the lender may agree to a short sale in which it accepts less than the full amount owed for the home. To avoid foreclosure, homeowners may also give the deed to the lender without satisfying the terms of the loan. Foreclosures can severely damage credit scores, making it harder to obtain a future loan with favorable terms. The first step to protecting credit is requesting a free credit report. The three major credit bureaus - Equifax, Experian, and TransUnion - are required to provide a free report every twelve months. The only authorized provider of the free report is www.annualcreditreport.com. Beware of impostors offering free reports which often come with strings attached. Any negative information on the report believed to be inaccurate should be disputed by requiring the company to verify the information. When disputes are not resolved according to the servicemembers satisfaction, they should submit a summary explanation that tells their side of the story. One-on-one assistance is offered at the legal office at 722-5322. Appointments are available on Tuesday from 9 to 11:30 a.m., and walk-in legal assistance is available Thursday afternoons 1 to 3:30 p.m. More information can be found at www.ftc.gov/bcp/menus/consumer/credit/reports.shtm, http://www.hud.gov/foreclosure, and http://hap.usace.army.mil/EP_PCS.html.