There is a lot of misleading and incorrect information out there when it comes to Santa Cruz real estate short sales. Most people don’t have a clear understanding of the purpose of short sales or how they actually work.
Essentially, a short sale is when you sell your home for less than the balance remaining on your mortgage. The proceeds from the sale are used to repay a portion of the balance. A short sale can be a solution for homeowners who really need to sell their home but owe more on the mortgage than the home is worth.
Understanding the short sale process can help you to get the most out of your Santa Cruz real estate sale. Below are some common myths and why they are false.
A short sale damages your credit record as much as foreclosure
A short sale is actually less damaging to your credit record than a foreclosure because it shows future lenders that you acted in a responsible manner. You sold the home for as much as possible and settled the debt rather than simply walking away from the situation. Opting for foreclosure is seen as a lack of responsibility.
To qualify for a short sale you must be behind on payments
This might have been true in the past, but it’s not anymore. You just need to be able to prove that you are in financial hardship, which could be due to death in the family, divorce, job loss, mortgage rate hike or even loss of property value.
After a short sale you can’t buy again for five to seven years
This is true in some cases, but not all. In certain situations the waiting period can be as low as two or three years before you are allowed to purchase another home. Speak with an attorney if you’re in the market to buy again.
These are just a few examples of commonly believed short sale myths. It helps to have an experienced agent with expertise in short sales to provide you with the correct information about the process.
If you have any questions, feel free to call me at 831.662.6522 or email me at Lauren@LaurenSpencer.com for more information about short sales and Santa Cruz real estate.
For additional real estate information, please visit my home page at www.MySantaCruzRealEstate.com.
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