San Jose Short Sale

San Jose Short Sale

Short Sales  requires proof of Financial Hardship.  This means home owners have to prove they are unable to earn enough money to make the required payment for the mortgage.   And in most cases the home values have declined so much that these owners are unable to sell the home at a price that will rid them of their mortgages.

So, it was refreshing to notice some signs of reason and sanity in the latest release of Chase Bank’s financial hardship criteria.  The list of

  1. Loss of employment
  2. Business Failure
  3. Damage to the property (could have been under insured)
  4. Death of a Spouse or wage earner
  5. Death of a non-wage earner. For example, a family member who was watching the seller’s children and now the seller has to pay to put the children in child care; or they were a financial contributor even though they weren’t on mortgage.
  6. Severe illness
  7. Inheritance (inherited an underwater property, cannot pay taxes etc…)
  8. Relocation
  9. Divorce
  10. Military Service
  11. Payment increase or mortgage adjustment
  12. Insurance or tax increase
  13. Legal separation
  14. Too much debt vs income
  15. Incarceration
  16. Combination of above

One the welcome additions to this list is number 14 which is “too much debt”.   In fact, that is the case for a large part of US home owners who can not afford to make payments on their mortgage and the consumer debt they have accumulated.  For these folks Short Sale is still a good option to eliminate their mortgage debt and start over.  Specially with Chase still offering large relocation incentive, we believe a Short Sale is the best way to avoid a foreclosure.