Foreclosure

In today’s precarious job market, many luxury homeowners are finding they can’t afford their massive, custom-designed properties any longer. As the once rich are having to quickly sell or abandon their Santa Cruz real estate, you might be able to snag a good deal on a distressed luxury home.

There are many horror stories associated with short sales and foreclosures, but if you do your research, are patient and can act quickly, you might be able to purchase the home of your dreams. If you want to take advantage of this sour market, then consider the following guidelines — and happy house hunting!

• Find an agent who has experience with distressed real estate. Interview Santa Cruz real estate agents to find out their history of dealing with foreclosures…

When a buyer makes a short sale offer on your Santa Cruz home, it’s impossible to know for sure if the offer will be accepted by the lender.  Even when you’ve negotiated the offer with the buyer and come to an agreement that meets both of your needs, there’s still no guarantee that the lender will say yes to the short sale.

Here are three tips to help get short sale offers on your Santa Cruz home accepted by the lender:

1. Convince the lender that you have a legitimate hardship. Submit a hardship letter, pay stubs, bank statements, monthly budget and profit and loss statement to demonstrate that you cannot make your monthly payments and have no disposable income. Here are examples of hardships to mention in your letter:

a. lost your job
b. reduced…

Just over a year ago, the federal government launched the Home Affordable Foreclosure Alternatives (HAFA) program.  It was supposed to streamline the short sale process for Santa Cruz home owners and home owners nationwide.  This article provides an update on HAFA.

How does HAFA benefit Santa Cruz home owners?

Home owners who don’t qualify for a loan modification can apply for a short sale through HAFA.  If the home owner qualifies for a HAFA short sale, the difference between the sale price of the house and the loan balance is forgiven.  In addition, HAFA offers qualified home owners $3,000 for moving expenses.

How well is HAFA working?

From April, 2010, to December, 2010, HAFA had disbursed just $9.5 million of the $4.1 billion in its budget.  And,…

According to a nationwide survey from Move, Inc., real estate investors are likely to be three times more active than other types of homebuyers in their local markets within the next two years.  If you’re one of those soon-to-be real estate investors, you may want to consider buying Santa Cruz foreclosures.

Here are a few tips to help you get the best buy:

• Don’t judge Santa Cruz foreclosures by their appearance.  A million dollar mansion may have a beautiful façade but may be hiding extensive termite damage to its foundation.   On the other hand, a fixer-upper may look rundown but may have excellent structure and can be fixed up easily for a fairly small amount.  Always get a professional home inspection to determine exactly what you’re buying.…

The real estate market is flooded with homes for sale.   Interest rates are at an all time low on fixed rate mortgages.  And, terms for acquiring a home loan are still fairly open.  This is expected to change and possibly soon, which means now is prime time to buy Santa Cruz homes for sale.

To help you with this process, here are answers to four of the most popular questions I’ve recently received from home buyers:
 
Q:  Where can I find the best deal on Santa Cruz homes for sale?
A:  The answer is almost anywhere.  Because homes are sitting on the market for a long time, most homeowners are more willing than ever to negotiate.

Q:  What about buying new construction?
A:  The option for new construction is open to more people than ever before.  Builders are…

The Santa Cruz real estate market is still a buyer’s market which means, as a buyer, you can get a good price on a home.  However, if you know what to look for, there are properties on which you can get a great price.
Here are three areas of the Santa Cruz real estate market that generally offer the best prices:

1. Homes that have been on the market for several weeks (or months!) -  Have your real estate agent send you homes that have been on the market for several weeks or months.  These property owners are more motivated to sell than the owners of newly listed homes.  They’re more willing to negotiate for lower prices or even give you extras such as home warranties or paying a portion of your closing costs.

2. Bank owned properties.  Bank owned…

Just like we hope Punxsutawney Phil avoids his shadow on Groundhog Day, across the country, homeowners hope to avoid the long winter of foreclosure madness and finally see the light of spring.

For the past three years, the economy has forced more and more Santa Cruz homes into foreclosure.  With layoffs, hiring freezes and pay cuts, owners’ once-secure Santa Cruz homes can be put into a precarious predicament. If you find yourself in a place where you can’t pay your mortgage, know that there are options other than just letting foreclosure take hold. Here are a few strategies for holding on to your house or getting the most from it

o Refinance your loan – Talk to your lender to find out if you can refinance your loan at a lower rate — your monthly…

When you go through a Santa Cruz  foreclosure, your credit score drops considerably. The good news is that you can rebuild your credit.  Here are a few tips to help:

1. Create a budget. A budget lets you see exactly how much money you have to spend each month. It also helps you track where you spend your money. Put together a budget that fits your lifestyle and then stick to it.

2. Build an emergency fund. You never know when an emergency will happen. When you’re prepared for a financial emergency, you’re better protected from financial problems.

3. Repair your credit.  Review your credit reports from all three credit bureaus.  Dispute any errors you find.  Removing errors from your credit reports help improve your credit.

4. Establish new credit.…

With all the talk of the great deals you can get on foreclosures in Santa Cruz, you may be tempted to step into the investment market. Or, you may get the idea that buying a foreclosure is your best bet for a great deal on a home. Well, it’s possible, but remember that the foreclosure market is full of perilous pathways and competitive investment pros who know what they’re doing.

Whether you’re considering purchasing foreclosures in Santa Cruz as investments or as your personal residence, here are a few tips that will help you get a great investment and avoid a bad disaster.

• Gather a Team of Professionals:  Your team of professionals should include a home inspector, a real estate agent and an appraiser.  You may also want to include a professional…

Is a home warranty necessary when you buy a Santa Cruz home? Isn’t it just an extra expense added on to an already expensive purchase? Not exactly. There are a few things to consider before deciding yes or no.

Type of Home
For example, the type of home you plan to buy makes a difference:

• Are you buying a newly constructed Santa Cruz home? Any newly built home should already be covered by the builder warranty, at least for a specific timeframe.
• Are you buying an older home? If so, a warranty might be the right thing to have.
• Are you buying a foreclosure? In this case, a home warranty is an excellent idea.

Homeowners Insurance vs. Home Warranty
Homeowners insurance is different from a home warranty.  Insurance covers the home if there’s a natural…