Lawmakers lack funds to help reassigned military families victimized by bust

TRD New York /
Nov.November 11, 2011 09:34 AM

A housing program designed to help military families who are underwater on their homes has proven too popular and is now out of money.

The housing bust has been especially difficult on military families, the Wall Street Journal noted, because many who bought houses during the boom and have been ordered to move across the country must sell their house at a loss rather than wait to recoup some value.

Though policymakers tried to remedy the situation in 2009 by expanding a 1960s program that provided benefits to soldiers who were reassigned and owed more on their home than it was worth, it is now out of money.

The program has already paid out $1.1 billion — $250 million more than the amount approved by Congress — and now many military families, especially those who bought homes more recently, are struggling to get the benefits and are selling their homes at a loss because of reassignments. [WSJ]

Related Articles

(Image by Wolfgang & Hite via Dezeen)

Hudson Yards megadevelopment inspires a new line of sex toys

Cammeby's International Group founder Rubin Schron and, from top: 194-05 67th Avenue, 189-15 73rd Avenue and 64-05 186th Lane (Credit: Google Maps)

Ruby Schron lands $500M refi for sprawling Queens apartment portfolio

Wendy Silverstein (Credit: Getty Images)

Wendy Silverstein, co-head of WeWork’s real-estate fund, is out

From left: a rendering of 3 Sutton Place, Joseph Beninati and Gamma Real Estate's Jonathan Kallikow

Failed Sutton Place developer files for bankruptcy

(Credit: Getty Images)

Express to close 100 stores, stock jumps 21%

Flo Rida is building a vodka distillery in Fort Lauderdale Opportunity Zone

Flo Rida is building a vodka distillery in Fort Lauderdale Opportunity Zone

Real estate brokers are feeling more positive about the business for the first time since dark clouds started appearing a year ago. (Credit: iStock)

Brokers feeling more upbeat for the first time in a year: REBNY

Fathom Holdings CEO Joshua Harley (Credit: Fathom)

Virtual brokerage Fathom Holdings files for IPO