There was recently some good news for military home owners. If they are permanently displaced due to a job-related responsibility they can still be able to be considered owner-occupants when they apply for the Homes Affordable Modification Program (HAMP).
The new terms were announced through an online post by Tim Massad, treasury assistant secretary, and Holly Petraeus, assistant director for Servicemember Affairs at the Consumer Financial Protection Burear (CFPB). The new plan makes it possible for borrowers to qualify if they are displaced because of an out-of area job transfer, like Permanent Change of Station orders for example. They also need to have intentions to return to their home at some point and they cannot own any other single-family real estate.
HOPE NOW applauded the announcement. They are a voluntary, private sector alliance of mortgage servicers, investors, mortgage insurers and non-profit counselors. “The issue of Permanent Change of Station creates a unique set of circumstances for military home owners who are required to move to a new location,” said Faith Schwartz, executive director of HOPE NOW. “Recognizing many of these home owners as owner-occupants allows them to qualify for a HAMP modification and creates a mortgage option that was not available before under the [previous] rules.”
This new set of rules makes it possible for more military families to become eligible for the government’s modification program. To ultimate goal is to help out struggling homeowners by decreasing their monthly mortgage payments.