The DOD has had a program (HAP) in place to assist DOD military and civilian members forced to sell their homes at a loss due to reassignment. Unfortunately, this program is cumbersome and hampered by budget limits.
The Treasury Department recently clarified its guidelines for HAFA (Home Affordable Foreclosure Alternative) program, after many military families were denied consideration under the program. Banks and servicers previously did not consider permanent change of station (PCS) as a financial hardship. The members were current on their mortgage until receiving orders to move.
With this new guidance from Treasury, most applications for a short sale or deed in lieu of foreclosure with a hardship created by a PCS will be approved. The borrower will also be eligible for cash at closing and waiver of the deficiency.
Please contact me for more details if you or someone you know is faced with a mortgage they cannot pay because of a PCS.
.