Stimulus includes help for homeowners

Military personnel aren’t immune from the country’s economic troubles, especially when it comes to selling houses, but they can minimize their financial strain.

Cannon Air Force Base Community Readiness Consultant Linda Sapp said the No. 1 financial problem facing the military now is being unable to sell a house or selling at a loss when changing duty stations.

“We’ve been struggling with this for probably two years, but relief has just been offered,” Sapp, who works at the Airman and Family Readiness Center, said.

The recently passed federal stimulus bill opens the Homeowners Assistance Program to anyone permanently changing stations. The program used to serve only people affected by Base Realignment and Closure.

Sapp said the assistance program provides partial reimbursements for qualified individuals who sell houses at a loss, and the government may purchase homes that don’t sell.

The Army Corps of Engineers, which runs the program, is accepting applications. A representative of the group told Sapp the funding and processes for handling applications would be in place at the end of April, she said.

In other money matters, Sapp said people should pay attention to finances now.

“Things we may have let slide in the past need attention,” she said.

Sapp advised military personnel to watch bill due dates, check their credit history and balance their bank accounts.

“Don’t rely on online banking information,” she said.

Online data may not include transactions that the account owner made but that haven’t gone through the account yet.

To get a free credit report from each of the three major credit reporting companies, Sapp recommended visiting annualcreditreport.com.

“Credit is tightening,” she also said.

Companies are closing unused or underused credit accounts, which hurts the cardholders’ credit score. Sapp advised personnel to monitor those accounts.

Also, across the nation, she said, servicemen and servicewomen have extended family members hurt by the economic problems. Sapp said military personnel should take care of their own bills and obligations before helping relatives.

“Watch the current situation, but keep the long term in mind,” Sapp continued.

This might be a good time to make necessary big purchases, if one’s budget and credit allow it, she said. However, Sapp warned against overextending finances or buying if it doesn’t make sense for long term plans.

“Investing still makes sense,” she also said.

If someone has faith in the overall integrity of an investment, Sapp said, this could be a good time to buy. Investors must do their homework, she continued.

To protect finances in case the economic situation worsens, Sapp recommended budgeting and being cautious with the use of credit, and again warned against overextending.

“Everyone needs an emergency fund,” she also said.

Sapp said military personnel should save regularly and keep spending in check. The amount individuals need in their emergency fund depends on their life situations.

“Things happen in our lives,” Sapp said. “Be prepared for them.”

The Readiness Center can provide budgeting assistance and financial counseling, except for specific investment advice.

Appointments: 784-4228.