Act includes help for military homeowners

  • Published
  • By 1st Lt. ALLISON MAIMONA
  • 56th Fighter Wing Staff judge advocate
LUKE AIR FORCE BASE, Ariz. --  Nationwide foreclosure filings rose 81 percent in 2008. In Arizona, and the metropolitan Phoenix area in particular, the housing outlook is even bleaker. Approximately 150,000 people in Arizona are in or facing the prospect of foreclosure. Last year alone a record 40,000 valley homes went into foreclosure causing the median home price to fall to $135,335, down from $225,000 a year ago. 

The good news is that help may be on the way. The American Recovery and Reinvestment Act was signed into law Feb. 18. Included was a provision that provides an additional $500 million for the Defense Department Housing Assistance Program and expands the scope of the program to assist those forced to move due to permanent-change-of-station orders. Service members can visit hap.usace.army.mil to download the application packet and get more information as it becomes available. 

Underscoring the effect that the foreclosure crisis has had on the Phoenix area, President Barack Obama visited Mesa recently to explain the Homeowner Affordability and Stability Plan, his $75 billion homeowner recovery plan. The plan would allow up to five million borrowers who owe more than their house is worth to refinance through Fannie Mae and Freddie Mac. For those already in foreclosure, but who own their homes, the federal government will provide matching funds to lenders to lower interest payments on loans. Borrowers, who stay current on modified mortgage payments, can get up to a $5,000 reduction in the principal they owe. Additional information is available at www.hud.gov and specific guidelines became available March 4. 

What can people do if they find themselves unable to make mortgage payments? They should not ignore the problem. The further behind they become, the more likely they are to lose their home. Homeowners should review their loan documents so they know what their lender may do if they cannot make payments. Homeowners should contact their lenders to discuss foreclosure prevention options. 

To get additional assistance, call the Arizona Foreclosure Help Line at (877) 448-1211 or visit www.fha.gov. Housing counselors can help homeowners understand the law and options, organize finances and represent homeowners in negotiations with lenders. For a list of housing counselors in Arizona, visit www.housingaz.com. 

Will foreclosure affect a military member's security clearance? Possibly. Security clearances are reviewed on a case by case basis and each individual's circumstances are taken into account. Under DoD D 5220.6, Guideline F, inability or unwillingness to satisfy debts may raise a security concern. However, mitigating factors include whether there were circumstances beyond the member's control, including market factors; whether the member made a good-faith effort to repay overdue creditors or otherwise resolve debt; and whether the member has a history of not meeting financial obligations.
For more information, call the legal office at (623) 856-6901.