Santa Cruz foreclosures

Urban legends can be found within every industry, and Santa Cruz real estate is no exception. Getting a big discount because a home needs minor repairs or being able to acquire 100 percent financing in a snap definitely isn’t as easy as it sounds and is probably just what you think — a big fat myth.

Whether you’re an experienced buyer or it’s your first time purchasing Santa Cruz real estate, do your research and don’t get sidetracked by enticing fables that might cause you to miss out on your dream home. Below are three debunked mortgage urban legends that have been plaguing the industry for years.

1. You can get a foreclosed home for almost nothing. While foreclosed homes do tend to sell consistently lower than other homes on the market, they’re not…

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…

Today’s economy has been rough on most everyone’s pocketbooks, and when it comes to prioritizing payments, mortgage payments can take a hit. If you find yourself in a bind, owing more than your Santa Cruz real estate is worth and you can’t afford your current mortgage, then you might want to consider talking to your real estate agent and bank about the possibility of a short sale.

To help you prepare for those conversations, here are the basics about short sales:

• What is a short sale? A short sale is an agreement that your Santa Cruz real estate agent negotiates between you and your bank to sell your home for less than you still owe. The bank absorbs the loss so that the seller doesn’t have to repay the balance of the mortgage.

• Why would you do…

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,…

Are you a Santa Cruz real estate investor or home buyer who wants to buy a short sale in order to get a great deal?  Unless you’re a seasoned short sale buyer, it’s not as easy as you may have been told.  In fact, there are so many steps to the process, this blog post only covers the first five.

1. Hire an experienced Santa Cruz real estate agent.  The first thing you want to do is find a real estate agent who is knowledgeable about buying short sales in your local market.  Unless you’re already a short sales expert, you need an experienced agent to guide you through the process because most homes that are listed as short sales never even make it to closing due to problems encountered along the way.  In fact, some stats show that as few as 1 in 10 short…

You want to avoid a foreclosure on your Santa Cruz real estate so you’re decided to try to sell it as a short sale. Unfortunately, there are several stumbling blocks that can keep you from successfully selling your home as a short sale.

Here are four short sale killers you should be aware of before deciding to sell your Santa Cruz real estate as a short sale:

1. You have not defaulted on your mortgage.  Lenders will almost never accept requests for short sales until you are significantly behind in payments and have received a notice of default.

2. You filed for bankruptcy.  If you’ve filed for bankruptcy, a short sale will most likely not happen. Few, if any, lenders will consider a short sale when the seller has filed for bankruptcy.  This is because…

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…

There’s a lot of confusion surrounding short sales, so I thought I’d answer some of the questions I’ve received from clients, owners of Santa Cruz real estate and blog readers.

Q:  What is a short sale?

A:  A short sale is when a lender agrees to accept less than what is owed on a home.  For example, you owe $300,000 on your home loan, but your lender will allow you to sell your home for $250,000.

Q:  Who makes up the difference between the short sale price and the amount owed?

A:  In the past, the owner of the Santa Cruz real estate would receive a 1099 income statement at tax time.  The “forgiven amount” would then be counted as income subject to income tax.  This left homeowners in debt to the federal government for the tax owed on that amount. …

Despite all the stories you hear on the news, buying Santa Cruz foreclosures doesn't have to be a negative experience.  Here are 3 tips to make the process smoother and more profitable for you:

Tip #1:  Allow plenty of time for the whole process. 

Santa Cruz foreclosures take longer to get to closing than traditional homes.  What takes so long?  As you probably know, there are a lot of foreclosures happening now.  That means there is a large backlog of foreclosures lenders have to process before they get to yours.

Another common problem that extends the buying time for foreclosures is title issues. Before closing, the new mortgage lender needs to prove that you have a clean title so they feel safe lending the money.  Each step of a foreclosure…