Housing Market Crisis:Support to Soldiers and Families

Assistant Chief of Staff for Installation Management

Strategic CommunicationsStrategic Communications

Supporting Families and Soldiers In the Current Housing Market

Supporting Families and SoldiersIn the Current Housing Market

“Not only do I have to worry about staying alive, but now I got to worry about whether or not my family’s going to get kicked out of the house.”  

Staff Sgt. Daniel EscamillaMortgage payments tripled while in his third combat tour in IraqSource USA Today 04/24/2008

Supporting Families and Soldiers In the Current Housing Market

BACKGROUND: Increasing variable home interest rates, plummeting home market values, historic numbers of foreclosures, and an overall economic turndown has combined to create the housing market crisis.

PURPOSE:•Provide information on the effect of the housing crisis on our Soldiers and their Families•Display the magnitude of the problem at installations •Provide guidance to assist Soldiers and Families •Review existing housing programs•Provide resources available to help

2 of 13

Supporting Families and Soldiers In the Current Housing Market

Current Housing Crisis Affects Army Families

Rent• Owner of rental property foreclosed• Forces Family to move (unforeseen costs)

Own• Upside down mortgage (appraised value less than outstanding mortgage)• Directed moves (PCS)

• Unable to sell or rent at current location• Forced into Short Sale• Foreclosure and pre-foreclosure• Unplanned Family separation (family remains at previous location) • Having to find housing at new location• Credit rating affected (ability to rent/buy new location)• Forced to pay two (mortgages / mortgage + rent at new location)

3 of 13

Home Price Change History USA 1992- 1st Q 2009(Federal Housing Finance Agency Housing Price Index)

5 of 15

2

13

7

3 3151

15

0

6 163

0

00

11

73

2

18

101

9

0

0

4

1

00

Fannie Mae Military Mortgage DataSelected Installations — 68% of Active Component Loans by Fannie Mae

N = Total Foreclosed in State; Total Foreclosed All States = 332 As of Jan 1 2009

Selected Installations Data

Number Foreclosed = 120

Number Current = 14,821

Sep 1 2005 - Jan 1 2009Number Delinquent = 556

West

Southeast

Northeast

269 412Fort Sill

510

1 7

2232 9Fort Polk

6

0

19 1265Fort Drum

5

09

Fort Meade629 15 9

984 18 2NCRD

486 5Forts Eustis/ Monroe

124Fort Lee

133 1

13

110 04Fort Campbell

Fort Knox219 316

4

2810 421 421

Fort Jackson

14 19SOUTHCOM

105 2

24

683 2Fort Stewart

21

Fort Gordon368 13 2

Fort Benning481 26 8

4

679 11 2Fort Sam Houston

31

15242 8 10Fort Leavenworth

1160 3Fort Leonard Wood

Carlisle Barracks93 4 1

036 0Rock Island

1 019Natick Soldier Ctr

10 577Selfridge Arsenal

6 160Fort Dix

6 160Fort Hamilton

1,292 1148Fort Hood

321 11 1Fort Riley

Fort Lewis962 30 4

233 36Fort Huachuca

0 010Picatinny Arsenal

1 013Watervliet Arsenal

1 063West Point

0 111Tobyhanna AD

Fort Rucker361 9 2

4 11Yuma PG

8 00Presidio of Monterey

2 10Fort Hunter-Liggett

208 05Redstone Arsenal

12 00Red River AD

Dugway PG25 0 0

64Fort Bragg

1,807 14

2 119Fort McCoy

Ft Buchanan, PR1

1,146 676Fort Bliss

2

2

467 213Fort Shafter/Schofield

76 22Fort Richardson

01Fort Wainwright

97

Pacific

Fort Carson840 23 6

10 of 13

Key Message

The nation is experiencing a housing market crisis. But the chain of command, military and civilian resources, and the

Army One Source website can provide information to Soldiers and Families to help overcome most housing and financial

challenges.

THE ARMY CARES.

How We Can Help

Soldier PCS

• Housing Financial Road Show • Installation Information for

Soldiers and Families• Programs available• Train installation staff

• Homeowners Assistance Program (HAP) proposed language

• WTU/Surviving Spouses• BRAC Causation• PCS• Sunset Clause Sep 12• Purchased prior to Jul 06

• Housing Services Office• Automated Housing

Referral Network (list home for sale or rent)

• G-1 Revising BAH waiver criteria to include Families remaining at prior location (unable to Sell/Rent home)

• MakingHomeAffordable.gov– ARRA program– Refinance & Mitigation

Soldier Unable to Sell

• Homeowners Assistance Program (HAP) proposed language

• WTU/Surviving Spouses• BRAC Causation• PCS• Sunset Clause Sep 12• Purchased prior to Jul 06

• AER loans to assist Soldiers on rent and mortgages

• G-1 Revising BAH waiver criteria to include Families remaining at prior location (unable to Sell/Rent home)

•Joint Federal Travel Regulation Revisions

• Changed to allow payment of moves by Military renters due to landlord foreclosure

Soldier in Financial Crisis

• Army Community Services financial counseling

•Spouse employment counseling

• Army Emergency Relief• Loans for

Rent/Mortgage• Grants for Rent /

Mortgage

• Chaplain support

• TJAG support• Foreclosure/Bankruptcy

• Federal and State refinance programs

• Command involvement

• MakingHomeAffordable.gov–ARRA program–Refinance & Mitigation

• National Foreclosure Mitigation Counseling (NFMC) Program

• Veterans’ Benefits Improvement Act of 2008

•Assist sub prime mortgages to refinance into more affordable VA guaranteed loan.

Other Federal Acies

• Veterans’ Benefits Improvement Act of 2008

• Assist veterans with sub prime mortgages to refinance into more affordable VA guaranteed loan.

• Service members Civil Relief Act • Prevents foreclosure on a

pre-service mortgage without a court order; allows Soldiers to reduce a pre-service obligation to 6%.

• Fannie Mae• Soldiers allowed to stay in

foreclosed properties and rent from bank

12 of 13

Supporting Families and Soldiers In the Current Housing Market

HOUSING CRISIS RESOURCESWebsites:•Military OneSource: www.militaryonesource.com•Army OneSource: www.myarmyonesource.com •Military Homefront: www.militaryhomefront.com•Army Housing OneStop: https://onestop.army.mil•Automated Housing Referral Network: www.ahrn.com•Army JAG: www.jagcnet.army.mil•Housing Assistance Program (HAP): www.hap.usace.army.mil

Local and Installation Resources• Army Community Services (ACS) Financial Counseling: Offers spouse employment counseling.• Army Emergency Relief: Offers grants and loans for Soldiers who are renting off-post. Chaplain Support• TJAG Support• Housing Services Office: Provides a Preferred Tenant Program for those Soldiers and Families interested in renting off-post. The Automated Housing Referral Network offers listing that are targeted to military personnel and families.•Federal and State Refinance Programs

2 of 13