Who Qualifies for a Short Sale in Santa Cruz?

Posted by Lauren Spencer on Monday, September 3rd, 2012 at 1:01am.

A “short sale” is a sale of real estate in which the lender accepts less than is owed on the mortgage so that a new owner can buy it and the current owner can avoid going in to foreclosure. If you’re struggling to make your mortgage payments, if you owe more on your home than its current market value or if you’re nearing foreclosure, you may want to consider selling your home as a short sale in Santa Cruz.

Not every homeowner qualifies for a short sale. Whether you qualify depends on how your financial situation has changed since you took out your mortgage. Your mortgage provider determines if you qualify for a short sale in Santa Cruz, but here are some basic requirements to give you an idea if you might qualify:

1. Your home’s market value has decreased. Your home’s fair market value has declined considerably and there is little chance of it coming back up any time soon. If you owe more than your home can sell for, this means you are "underwater" or "upside down."

2. You have a financial hardship. Having a financial hardship will or has caused you to miss payments. Listed below are examples of hardships:
a. Mortgage adjustment
b. Job loss or curtailment of employment
c. Failed business
d. Excessive debt (a high debt ratio)
e. Divorce
f. Medical emergency/sudden illness
g. Bankruptcy
h. Death

3. You have no assets. The homeowner does not have any savings or any other assets, to bring the mortgage current. Other assets include other real estate, stocks, bonds and IRA accounts.

4. Your mortgage payments are in arrears. You are behind in your mortgage payments by more than one month, or you’ve demonstrated that you will not be able to keep up with your payments due to financial hardships.

If you’d like help selling your home as a short sale in Santa Cruz, please give me a call today at 831.662.6522 or email me at Lauren@LaurenSpencer.com for more information.

For additional information about buying or selling a home, please visit my home page at www.MySantaCruzRealEstate.com.

Market value

High debt ratio

Mortgage payment in arrears

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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