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Transferring soldiers hurt in home sales
Fla. congressman asks if help is available to those taking losses as they sell in slumping market
 
Friday, May 02, 2008 - 12:09 AM 
 
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By BILLY HOUSE
MEDIA GENERAL NEWS SERVICE

WASHINGTON -- Transfers from slumping housing markets nationwide are forcing military members to sell homes for thousands of dollars less than they owe on their mortgages, says a Florida congressman.

"And the current problem hits these Americans particularly hard as they have no choice but to move when issued new orders," says Rep. C.W. Bill Young, the top Republican on the House Defense Appropriations Committee.

"I think this is happening all over the country," Young said yesterday.

Young outlined the problem in a letter this week to Defense Secretary Robert Gates, seeking guidance on how Congress can help.

There was no immediate comment from Gates' office.

Young said the problem is particularly acute for service members who rotate through duty assignments on twoor three-year cycles. Some are even choosing to leave their families behind when they transfer, he says.

Attached to Young's letter was a memo regarding a specific group of soldiers from his district who are due to transfer out.

The memo says many of the soldiers purchased homes in the area that have since been devalued $40,000 to $50,000 and that "consequently these homes will not sell for what is owed to the mortgage company."

The memo goes on to describe soldiers as having to "resort to short sales and are walking away from their homes with foreclosures looming over them."

It adds: "Soldiers' financial records are being affected due to this situation."

A housing assistance program has been established to help communities and families that have been affected by base closures and realignments, and the memo raises the question of whether reassigned service members could also be eligible for such assistance.

Young also noted that a supplemental defense spending bill now being drafted might be a vehicle for housing assistance for men and women in uniform.


Reporter Billy House can be reached at bhouse@mediageneral.com or at (202) 662-7673.

 

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