Military Families to get Help Selling Homes

Military Families to get Help Selling Homes
February 27, 2009
Virginian-Pilot

For many military families, the prospect of moving and selling a home amid the biggest housing decline in decades is daunting, but a little-touted provision in Congress' economic recovery package could throw some a lifeline.

The stimulus package includes $555 million in aid to compensate military service members who are given orders and must sell their homes for less than market value. The Department of Defense would reimburse the individuals for up to 95 percent of the loss if the homes were purchased before July 1, 2006. The department could also elect to purchase the homes for up to 90 percent of the fair market value.

However, many families who qualify for the program are in a holding pattern until the department clarifies whether it will use the value of the home at the time of purchase or the value in today's market. The difference could mean tens of thousands of dollars in aid.

Home prices in South Hampton Roads have dropped steeply in the past year, according to Real Estate Information Network Inc. In January, the median sale price for existing homes was $194,000, down 13.7 percent from $224,900 a year ago. The median is the point at which half the prices are higher and half are lower.

At the same time, home sales have hit their lowest point since 2005. The service reported that 435 existing homes and condominiums were sold last month in South Hampton Roads. That's down 31.4 percent from December and down 36.6 percent from 686 in January 2008.


Rest of article at: http://www.military.com/news/article/February-2009/military-families-to-get-help-selling-homes.html?col=1186032310810