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…

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You may have heard of points when looking for Santa Cruz real estate.  Maybe your loan officer told you that you can trade points for a better interest rate.  That sounds good, but just what are points? Let me give you a better idea of just what points are and how they work.

What Are Points?
Points, more specifically discount points, are a percentage of the total loan amount for the house that is pre-paid to the lender.  Each point is worth one percent.  Your lender may offer a lower interest rate for your mortgage loan if you buy discount points.

What do Discount Points Cost?
The cost of each point is equal to one percent of the loan amount. For instance, for a $200,000 loan one discount point equals $2,000.

For example, you are trying to buy…

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You’ve decided to put your Santa Cruz home up for sale.  Now, how are you going to make the most money selling it and get it sold the fastest?  Perhaps you should consider providing owner financing, also known as seller financing. 

Why Isn’t The Buyer Getting Bank Financing?
Usually a buyer gets bank financing when buying a home.  If the buyer approaches you with a deal that involves you doing the financing, you’ll want to ask why.  It could be that they can’t afford a big down payment, and can’t be approved for a loan without it.  Or, they may not be able to get financing at all, due to no credit or bad credit.

In that case, you’ll want to evaluate if you can afford the risk.  Can you make the monthly mortgage payment in the event they default? If…

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You’ve finally decided you want to buy a piece of Santa Cruz real estate.  What do you do now?  Here are a few tips for getting the best deal for your money:

Check Out Your Credit
The first thing you’ll want to do is order a copy of your credit report from the three major credit bureaus:  Experian, TransUnion, and Equifax. 

Look for inaccuracies in:
• Name
• Address
• Creditors
• Late payments
• Delinquencies

After you’ve reviewed your credit report and know your credit score, you’re ready to make improvements to your report.  You can send a written “Notice of Correction” to the credit bureaus.  It can be up to 200 words.  If needed, you can explain why you fell behind on a particular debt, and every time a lender accesses the report, they’ll see your…

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Every homebuyer or seller will want to get a good bargain in the housing market.  Negotiating for a Santa Cruz home is not easy at all because all the parties involved, whether it is the buyer, seller, agent, the attorney, property inspector, and others will want to be favoured by the transaction.  In order to make some gain from the transaction, you need to have a strong bargaining position.  Here are some negotiating tips that you should apply.

Consider the market

Sometimes, the market may favor the buyer, and other times it may favor the seller.  Though there are some trends that are general in the real estate market, certain situations may give one party an advantage over the other.  For example, if your property is located in a good location…

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When you look at all the recent improvements in green technology, it is easier than ever before to transform your Santa Cruz home into a green home. If your home is a green energy home, you will use renewable sources for your power, hot water, security and heating. Numerous methods exist to transform your traditional home into that of a green home.

The first step you can implement around your home is that of solar power. In your green home, you can implement a solar heating system to provide heat and help store enough water for usage. Using solar panels can help convert the rays from the sun and turn them into power. If you were to purchase these items and have them installed by a specialist, it could end up costing you a significant amount of money.…

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It used to be that you spent 50 years at a company and 50 years in your Santa Cruz home, and when you retired, your home mortgage was (happily) paid off. Times have changed. Certainly, few people spend their entire careers at one company, and now many retirees are shrugging off the conventional wisdom of paying off their homes at retirement. 

Here are some points to consider if you are pondering using your savings to dispose of that mortgage on your Santa Cruz home:

• Home Value: If you are one of the unhappy folks who are underwater (that is, the value of your home is less than what you owe on the mortgage), then paying off the mortgage will secure your credit from any possible foreclosure issues should you have cash flow problems later. But paying…

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With the slump in the economy, many would-be home buyers are being more cautious than they might have been ten years ago. This is a good thing, especially if it’s their first Santa Cruz home. Smart buyers budget their income, do their market research and get their funds in order before they begin house hunting.

Whether you’re ready to purchase a new Santa Cruz home now or the dream is still a little ways down the road, take the time to prepare your finances now. Below is some advice to consider before starting your home search.

• Save, save, save! You’ll need to have a down payment of about 10 to 20% of the price of the home, unless you qualify for a Federal Housing Association loan. FHA loans usually only require a down payment of around 3.5% of…

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You’ve found the Santa Cruz home you want to buy, and now you’re ready to finalize your mortgage. But the multitude of closing costs associated with the mortgage is confusing. To help you navigate the mortgage world, here are descriptions of many of the charges you may incur when obtaining a mortgage to purchase your home:

Title Costs
• Recording fees for the deed: This pays the county clerk to record the deed and mortgage and change the property tax billing.
• Other state and local fees: This can include mortgage taxes levied by the state as well as other local fees.
• Pro-rated taxes: Taxes for schools and municipalities.
• Title search costs: Usually your attorney or title company will arrange for the title search to make sure there are no obstacles to…

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If you’ve recently gone through a foreclosure, you may already be wondering how soon you’ll be able to buy another Santa Cruz home. You enjoy the pride of homeownership, and you want to buy as soon as possible so that you can take advantage of today’s lower prices.

Here are answers to two commonly asked questions about buying a home after foreclosure:

How soon can we buy a home after a foreclosure?

Fannie Mae and Freddie Mac impose the following waiting periods on conventional home loans, depending on the type of foreclosure you went through:

• Buying after a foreclosure: The waiting period is 5 to 7 years.
• Buying after a foreclosure with extenuating circumstances: The waiting period is 3 to 7 years.
• Buying after a deed-in-lieu of…

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