Should You Consider a Short Sale on Your Santa Cruz Home?

Posted by Lauren Spencer on Sunday, March 28th, 2010 at 11:01pm.

A short sale happens when a lender agrees to accept less than the balance remaining on a home. It is a way for sellers to avoid foreclosure and sell their Santa Cruz homes.

It seems like a good idea for people who owe more on their home than it’s worth, but that doesn’t mean it is right for everyone. Should you consider a short sale on your Santa Cruz home?

Pros to doing a short sale:

• You will be able to sell your property, get out from under a mortgage you cannot afford and lower your debt.

• You can still sell your property in a declining real estate market, even if you owe more than the home is worth.

• Buyers sometimes get good deals on the property or may be able to buy a home at market value in a popular area they couldn't previously afford.

• While a short sale isn't ideal, it is typically better than a foreclosure which stays on your credit report for 10 years.

• If your home goes into foreclosure and is sold at auction for less than the mortgage, you can still be held responsible for making up the difference.

Cons to doing a short sale:

• The lender may refuse to do the short sale, or they may still hold you responsible for the remaining debt.

• The bank’s loss is considered taxable income for you, and you may have to pay taxes on the amount.

• Short sales do stay on your credit report and may make it difficult for you to a get loan in the future.

• You may have to find a real estate agent willing to work for a smaller commission.

• Short sales take longer to close than traditional home sales.

I can help you decide if a short sale on your Santa Cruz home is right for you. Call me today at 831.662.6522 or email me at Lauren@LaurenSpencer.com for more information about your selling options.


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Short sale

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lender may refuse to do the short sale
 

 

About Lauren Spencer

Award-Winning Santa Cruz REALTOR®

Lauren Spencer is your local real estate expert, specializing in Santa Cruz real estate and surrounding communities—this is where she lives, works, and plays too. Let her know your questions about the community and county and she'll be happy to fill you in on all you want to know! Lauren Spencer has consistently been voted best local REALTOR in Santa Cruz and is always happy to offer her advice and expertise. Call her at: 800.226.4717.

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