Charlotte, NC. Short Sales--You Need A Hardship To Qualify

With short sales still dominating the market in Charlotte, NC. there is a saying that if you are not behind on your monthly payments you can not do a short sale....This is totally wrong. Granted most people that are contemplating short sales are behind on their mortgage and circumstances have led them to that option in lieu of losing their home to foreclosure. The truth is that in order to qualify for a short sale one needs to show a hardship that was not their before. One example of hardships are loss of job. This is the most common one among families in the Charlotte, NC. area that are looking to do a short sale. With unemployment still relatively high they don't make enough with unemployment to carry the existing mortgage payment. they dwindle through their savings account and retirement to maintain their home in the hope that they will secure a job soon and replenish it...Unfortunately that time never comes. Another one is that you need to move for a job. I have had a few of these situations in the past year. Either they lost a job or were told to move for their job and the company would not help them with relocation to another area. They are unable to maintain a new residence and keep up with the existing mortgage payment...and they know the house is worth less than they owe on it. Third type of hardship that is common is medical issues.... This is an unfortunate one that can catch anyone off guard. But medical issues that hinder your health and affordability of a house can be a sufficient reason for a short sale. A fourth one that I have seen a lot of lately is to take care of elderly parents who are unable to care for themselves anymore. With the cost of assisted care so high they cannot afford to place them in a home. So the only option is to move in with their parents in order to help make their last few years as enjoyable as possible these are just four examples of some of the types of hardships that can be used for a short sale. There are more than this. these are just the most common ones. But if you are contemplating a short sale and you make enough money to pay the mortgage and the reason you want to short sale is because of the value of your home the bank will reject your application. The difference is the banks have the right to say NO. mainly because they are looking at this as an alternative to you losing the house through foreclosure. With a foreclosure there is a lot of red tape and paperwork that is involved. In addition it costs the bank significantly more than if they were able to get the home sold before hand....but they are looking at all the financial records and reason why and deciding form that whether you qualify for a short sale or not. I have had families want to short sale because of the loss of equity and were willing to fall behind...However; banks will look at your financial records and pay stubs and if they feel you can make the payment. So, be sure that you have to short sale or you will lose the house or you will not be able to get the bank to approve a short sale. Dave diCecco Realtor/Broker www.davedicecco.com