House Buy Out

[Quag]

Gents,

Does anybody know the current CF policy regarding getting posted and your house for sale.

Do they still buy your house at market value if you cannot sell it?

I have sent off an email to IIRP but they have not got back to me, and I'm just looking for a little insight from someone who may have done this recently.

Cheers,

Quag

 

[exgunnertdo]

They don't buy it if it doesn't sell.  There are two things they will do though:

You can claim Dual Residency (can't remember what exactly it's called).  You claim the expenses for keeping the house after you move (mortgage interest, utilities, someone to mow the lawn, shovel the snow etc).

They will compensate you for a loss if it sells for lower than you paid for it.

Both of these have limits on them, once you've reached the limit on the Core package, you dip into the Custom, then into the Personalized.

I have no idea of the exact figures/limits - so check the books they gave you or the policy here.  (Sorry, DWAN only)

 

[Eye In The Sky]

CF IRP Internet Site is located here.

 

[Jed]

I am currently going through this with IRP. As the policy has been written and explained to me it is not very favourable for the member if the housing market is in a down turn. Some points as I see it:

a. IRP puts all onus on the member to sell your own house to affect a door to door move.

b. The current assessment of your house is manadatory but it is not considered  in determining the value of your house for resale. What is considered, is whatever your purchased it for on the accepted offer, even if it was 10 years old or if the market went significantly up or down since you bought your house.

c. If you buy a new house, supposedly one that can be flipped easily, you can not expect to have major improvements, such as lawnwork, or basement renos put on to the value of your house as determined by what you paid on the offer.

d. Selling your house works great if the market is hot, not so great if the economy slows down.

e. If you are releasing and not being posted, there are a number of other policy issues that make it more difficult to be appropriately compensated for moving your F and E at a time that works for the member

Needless to say, I wish we had the old system in place prior to IRP as it was, in my opinion, much more fair and not all about some private firm watching the bottom line on behalf of the company and not for DND members.

 

[PPCLI Guy]

If your house has been on the market for a while, they will kick in a $5000 buyers bonus as well.  I bought a house this summer form a military famil and they had been on the market for 4 months.  When I signed all the papers to take possesion of the house, I recieved a check for $5000 as well.

Dave

 

[Jed]

I'm not certain Dave, but I think the policy changed somewhat this FY and the $5000 bonus went away. A least no one has been advising me of this, this year.

 

[Quag]

Right on guys.  Thanks for all the valuable input.  As a first time home buyer, I'm just trying to plan for the future.  Thanks again!

 

[newwife]

I'm in a similar situation as the first question - husband is on IR posting and expected within the next month to have a residence and we will receive the ok to move me and sell our house.  My concern is obviously in the market conditions and the city we live in that the house will take a long time to sell.  I've read through the all of the polices regarding posted moves but still am concerned about the TDRA benefit: http://www.forces.gc.ca/dgcb/dcba/pdf/CFIRP_policy_A-PP-005-IRP-AG-001-1_Apr-08_e.pdf

According to the policy, only the following is paid:
• Interest charges on a first mortgage (or on a second mortgage if there
are no charges on a first mortgage);
• Taxes (i.e., property, school);
• Utilities (i.e., electricity, heating);
• Property maintenance (such as lawn cutting, snow removal, and minor
maintenance);
• Insurance (house insurance including additional insurance costs for
empty residence); and/or
• Rental of a mobile home pad.

So, will I then be responsible for paying for both my mortgage and rent in our PMQ?

Also, how do you apply for TDRA - is there a certain period of time when I have to remain in the house while my husband is on the posting or do they permanently leave us on an IR posting until the house is sold?

Thanks in advance for your help!

 

[CountDC]

The way I read it and from talking to a co-worker that just went through a move you will be responsible for paying the mortgage on that end until you sell and the rental/mortgage in this end. 

They do not buy houses but will reimburse some or all of your loss on the original purchase price - very important that people understand this part.  I have seen some people very upset when the assessed value was say $200k, they sold at $180k expecting the military to make up the difference and received nothing as they had paid $150k.  To them it was a loss of $20k but to IRPP it was a gain of $30k.

Also make sure you take notes, get everything you can in writing and read the regulation they refer to yourself to ensure you understand what they are saying.  Every office does not have the same knowledge, nor does every agent.  I have not personnally met anyone that had a move claim go 100% smooth as there has always been some little item that point A said yes and then point B tried to say no. Mine was an issue on policy for an extended HHT and car mileage versus gas purchase.