What is the Private Sale Augmentation Benefit?
A. The Private Sale Augmentation Benefit was recently authorized and allows eligible applicants to sell their homes for less than the mortgage payoff provided the sale proceeds and the HAP benefit are sufficient to pay the mortgage and all closing costs in full. HAP may pay the difference at closing between the sale price and the loan balance (payoff) to the mortgage company and other associated costs may be included. The private sale benefit is not taxable; however, reimbursements, e.g., closing costs, are considered income and are subject to taxation. Please contact a HAP Realty Specialist to discuss your particular situation to determine whether you meet the criteria for an augmented sale prior to negotiating and signing a sales contract.
