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        <title>Santa Cruz Real Estate News &amp; Information</title>
        <link>https://www.mysantacruzrealestate.com/blog/foreclosure/</link>
        <description>Lifestyle, community, day trips, restaurants, real estate, home improvements, and more. Discover what makes Santa Cruz County such a great place to live. Presented by My Santa Cruz Real Estate.</description>
<item>
    <guid>https://www.mysantacruzrealestate.com/blog/what-you-need-to-know-about-buying-a-foreclosure-property-in-santa-cruz.html</guid>
    <link>https://www.mysantacruzrealestate.com/blog/what-you-need-to-know-about-buying-a-foreclosure-property-in-santa-cruz.html</link>
        <author>lauren@laurenspencer.com (Lauren Spencer)</author>
        <title>What You Need To Know About Buying A Foreclosure Property In Santa Cruz [UPDATED]</title>
    <description> <![CDATA[ 



When buying a home in Santa Cruz, it’s hard not to be attracted to a foreclosure.


Not only are these homes priced below market value, they are often located in some of the most desirable neighborhoods around Santa Cruz.


But sometimes, these homes are too good to be true.


They often come with a number of stipulations that you should know about before jumping at the opportunity.


To help you with your real estate journey, here are a few things you should know before you commit to buying a foreclosure property.




Types of Foreclosure Properties


Things To Watch Out For If You're Considering A Foreclosure


Tips for Buying a Foreclosed Home in Santa Cruz





Types Of Foreclosure Properties


There are four stages of a foreclosure sale, and knowing the difference between them could help protect you as a buyer.


Pre-foreclosure or Short Sale


With short sales, the current owner still has control over the property and will vacate when the home has been purchased by a buyer.


This type of home is sold as-is, but in this case, buyers can opt for an inspection before the final transaction. This is a great perk that can help you determine whether or not the home is right for you.


But this doesn’t mean problems can’t arise with this type of sale. Learn more about some of the problems that can arise with this kind of transaction below.


Auction Sale


If a home doesn't sell in a short sale, it's sent to the auction block. These are typically executed by a third-party to help prevent a bias or playing favorites with properties.


During this, however, the lender can't make a profit at the auction. Any money that's made over the cost of the home will be applied to the outstanding liens on the house.


One of the biggest drawbacks for buyers is that these purchases are cash only sales—not many people are able to just stroll into an auction with enough bills to buy a house.


Also, if there are any outstanding liens on the house that weren't covered by the sale, you (as the new owner) are now responsible for them.


Real Estate Owned (REO)


If the property doesn't sell at an auction, then the lender assumes full ownership. This is the most popular method of purchasing a foreclosure in Santa Cruz as there is usually a lower risk to the buyer.


The biggest benefit to buying a foreclosure home this way is that many of the liens on the home are taken care of by the lender or current owner.


Government Owned


Government owned properties are similar to the auction homes in that you’re likely going to have to pay in cash. But, the various government agencies might be able to help out with the financing, depending on which agency owns the property.






Things To Watch Out For If You're Considering A Foreclosure


Expect An Impersonal Experience


In most cases you'll be dealing with a lender or a bank, neither of which are interested in your needs as a buyer. Their main priority is to make the money back on the property, so if the numbers add up in their favor they'll make the deal.


Avoid The Auctions


It can be hard to pass up a really good price on a home, but even the smartest buyers sometimes get swindled at the auctions. Since you can't perform a house inspection, you're essentially flying bling and just relying on a hope that the house isn't in need of any major repair.


This could open up a whole new can of worms that you weren't anticipating, and make buying a foreclosed home a more expensive purchase than a brand new home could be.


Watch Out For The Former Owner


If the old owner is still in the home when you purchase it, you're now responsible for getting them out, which may be easier said than done.


It's an unfortunate reality that some owners are a little bitter about being evicted from their home, and can occasionally wreak havoc on the residence before their departure.


Get Prequalified Before Shopping


This is a pretty standard rule of thumb for anyone who's in the market for a home, whether it be a foreclosure, resale, or recently built residence. It’s important to get prequalified for a mortgage before you purchase a home so that you know how much you can afford and how much money you can put towards repairs.



Tips for Buying a Foreclosed Home in Santa Cruz


Distressed homes are often a great deal if you can get them at the right price; however, they can also be a gamble. The process is complicated and can be frustrating. Before taking this large financial leap, hire a real estate agent to help you evaluate the risks, find a good deal, and get the right price.


Below are tips for how you can stay on top of the process and get a great deal:


Find a Foreclosure Expert


While many agents can probably help you navigate these tricky waters, it’s best to find an expert who specializes in distressed properties. Lauren Spencer is your go-to real estate professional in Santa Cruz. No matter the type of property, she will be able to help you move quickly through this complicated process.


Be Prepared to Face Competition


Foreclosures in Santa Cruz are often snatched up quickly, which means you might only get one shot at a bid. You’ll want a seasoned professional in your corner to help you make a smart offer the first time.


Evaluate the Home For Repairs


An agent who is knowledgeable about foreclosures can give you a good evaluation on a distressed property. They’ll also have a list of home inspectors to give you a professional inspection and contractors to give you an estimate on repairs. You’ll want all of this information before you present an offer.


Attain a Loan From Your Bank


Not only will you need repair estimates for your offer, but you also need them when you apply for a loan. Banks are sometimes wary to provide loans on foreclosed homes, so be prepared to back up your figures with facts.


Although foreclosure homes can be a gamble, sometimes they’re a pot of gold. To ensure you make the right choice when buying a foreclosure home in Santa Cruz, have a real estate agent on your side. Lauren Spencer is the best in the business when it comes to real estate in Santa Cruz. Contact her to start your real estate journey today
 ]]> </description>
    <pubDate>Mon, 20 Apr 2020 14:39:00 -0700</pubDate>
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    <guid>https://www.mysantacruzrealestate.com/blog/when-can-you-buy-santa-cruz-real-estate-after-foreclosure.html</guid>
    <link>https://www.mysantacruzrealestate.com/blog/when-can-you-buy-santa-cruz-real-estate-after-foreclosure.html</link>
        <author>lauren@laurenspencer.com (Lauren Spencer)</author>
        <title>When Can You Buy Santa Cruz Real Estate After Foreclosure?</title>
    <description> <![CDATA[ 
If you lost your Santa Cruz real estate because of foreclosure, you probably haven't given up on the dream of owning a new home. You may be scared to attempt new financing — afraid you’ll be turned down and embarrassed in the process.


There are a few guidelines that lenders follow to determine when you’ll qualify for financing after foreclosure. Arming yourself with this information will help you overcome your fears and qualify again for a mortgage.


Foreclosure With Extenuating CircumstancesGenerally, lenders will take into consideration any extenuating circumstances surrounding the foreclosure on your Santa Cruz real estate.


Was there a death or illness that prevented you from earning money to pay your mortgage? Did you have a job transfer that came with a steep pay cut? Were you severely injured and temporarily disabled as a result?


You can add a memo that explains any lapses in credit worthiness to potential lenders. This report can be up to two hundred words and will be shown to all who look at your credit report.


Many lenders will shorten the waiting period for documented extenuating circumstances. The customary waiting period after a foreclosure is at least seven years. But with documentation, the waiting period can be shortened to as little as three years.


Deed-in-Lieu of Foreclosure and Short SaleYou may be wondering what the waiting period for financing is for deed-in-lieu of foreclosure or in the case of a short sale. Fortunately lenders aren’t quite as strict if you were able to avoid an actual foreclosure sale.


The waiting period for a deed-in-lieu of foreclosure is four to seven years. If there were special circumstances surrounding the deal, you might be able to qualify in as little as two years. The lender may require a certain down payment or credit score as a condition of approval.


Getting financing after a short sale is the easiest. Generally the lender will only require a two-year waiting period before they’ll approve financing.


The good news about financing after foreclosure is that it is possible. Your dreams of owning Santa Cruz real estate don’t have to end because you’ve had a foreclosure in your past. You may just have to be a little more patient.


Whether you're ready to buy your next home or simply have a question about Santa Cruz real estate, I'd love to help. Give me a call today at 831.662.6522 or email me at Lauren@LaurenSpencer.com.


For additional real estate information, please visit our home page at www.MySantaCruzRealEstate.com.


LINKS:Foreclosure


Deed-in-lieu


Short Sale
 ]]> </description>
    <pubDate>Sat, 02 Mar 2013 01:01:00 -0800</pubDate>
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<item>
    <guid>https://www.mysantacruzrealestate.com/blog/a-guide-to-santa-cruz-short-sales.html</guid>
    <link>https://www.mysantacruzrealestate.com/blog/a-guide-to-santa-cruz-short-sales.html</link>
        <author>lauren@laurenspencer.com (Lauren Spencer)</author>
        <title>A Guide to Santa Cruz Short Sales </title>
    <description> <![CDATA[ 
If you are not able to meet up with your mortgage obligation, rather than foreclosing your home, you can opt for a short sale.  This means selling the home at an amount lower than what you owe.  However, it is good to mention that not all homes or sellers qualify for Santa Cruz short sales.  Even if a home qualifies for short sales, some lenders may not accept it, especially if they will make more gain should you foreclose the property.  Here are some of the tips that you should consider if you are opting for a short sale.


Seek legal advice from a real estate lawyer


Santa Cruz short sales are not always the best. So, it is important that you seek the advice of a real estate lawyer. A lender may still ask you to pay for the difference between the amount owed and the amount the home is short sold. A real estate lawyer can tell whether any deficiency claim can be made on you or not after the short sale.


Get a letter of authorization


Normally, lenders will not reveal your personal information unless you authorize them. So, you need to submit a letter of authorization allowing the lender to speak with the people interested in purchasing your loan.


Get a preliminary net sheet


Ask your lawyer to prepare a preliminary net sheet for you. It indicates the expected sales price, unpaid loan, late fees, outstanding payment, real estate commission and any other costs incurred in the sale that add together to make up the estimated closing costs.


Prepare your hardship letter


As the name implies, this letter tells your financial situation and how you, as the homeowner, got there.  It also appeals to the lender to accept the short sale.  It is advisable that you be highly emotional in the letter to win the sympathy of the lender.


Other things that you should get include:


• Comparative market analysis• Your bank statements• Proof of assets and income• Purchase and listing agreement


If you would like to know more about a short sale, please call me at 831.662.6522 or email me at Lauren@LaurenSpencer.com to schedule an appointment.


For additional real estate information, please visit my website at www.MySantaCruzRealEstate.com.


Links


Seek legal advice from a real estate lawyerGet a preliminary net sheetPrepare your hardship letter


 


 
 ]]> </description>
    <pubDate>Sun, 09 Dec 2012 01:01:00 -0800</pubDate>
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    <guid>https://www.mysantacruzrealestate.com/blog/buying-a-santa-cruz-home-after-foreclosure.html</guid>
    <link>https://www.mysantacruzrealestate.com/blog/buying-a-santa-cruz-home-after-foreclosure.html</link>
        <author>lauren@laurenspencer.com (Lauren Spencer)</author>
        <title>Buying a Santa Cruz Home After Foreclosure</title>
    <description> <![CDATA[ 
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 foreclosure: The waiting period is 4 to 7 years.• Buying after a deed-in-lieu of foreclosure with extenuating circumstances: The waiting period is 2 to 7 years.


Fannie Mae and Freddie Mac frequently issue new guidelines. The above policies were in effect as of August 1, 2008. Waiting periods for FHA loans and VA loans are somewhat shorter than Fannie Mae’s waiting periods.


What can we do during that waiting period to prepare us for success when buying a Santa Cruz home?


When you go through a full foreclosure, expect your credit score to decline by 140 to 150 points. You’ll also have negative marks from the foreclosure on your credit report for as long as seven years, which makes it more difficult to buy a home. The number one thing you need to do to prepare to buy another home is to fix your finances:


• Reduce or pay off your debt. • Pay every bill on time, every time. • Eliminate unnecessary monthly expenses. • Dispute any mistakes on your credit report.• Save for a future down payment.


If you’re in the market to buy a Santa Cruz home or would like more information about preparing to buy a home, I can help. Give me a call at 831.662.6522 or email me at Lauren@LaurenSpencer.com.


For additional information please visit my homepage at www.MySantaCruzRealEstate.com.


Links:


Waiting periods


VA loans


FHA loans
 ]]> </description>
    <pubDate>Wed, 08 Aug 2012 01:01:00 -0700</pubDate>
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    <guid>https://www.mysantacruzrealestate.com/blog/seek-professional-advice-when-buying-a-foreclosed-santa-cruz-home.html</guid>
    <link>https://www.mysantacruzrealestate.com/blog/seek-professional-advice-when-buying-a-foreclosed-santa-cruz-home.html</link>
        <author>lauren@laurenspencer.com (Lauren Spencer)</author>
        <title>Seek Professional Advice When Buying a Foreclosed Santa Cruz Home</title>
    <description> <![CDATA[ 
When driving through local neighborhoods, you might notice many “For Sale” signs that have foreclosure banners attached to the top. While this distressed financial situation is unfortunate for the owner, a Santa Cruz home in foreclosure could be a great investment for you.


Purchasing a foreclosed property might seem extremely complex. If you’re interested in a great real estate deal, but feel a little overwhelmed, it’s important to cut the confusion and contract with professionals who are experts in distressed properties. They can walk you through the process, eliminate foreclosure frustration and get you the best deal.


Here are a few tips to help you successfully buy a Santa Cruz home in foreclosure:


• Find a good real estate agent. When interviewing real estate agents, you want to make sure you find one who specializes in foreclosures. Then ask for referrals from clients who have been through this process with them — you can gain a lot of insight from people they’ve worked with.


• Have the house thoroughly inspected. Most banks are selling foreclosed properties “as is.” This means the house could be in bad condition if it’s been stripped and abandoned. Make sure you have a good home inspector go over every inch to ensure there are no major issues.


• Get quotes on renovations. After the inspector has given you a list of problems and needed updates, find a good contractor or two to take a look and give you an estimate on what they would charge to renovate. You’ll want to determine if the renovations are worth the investment.


Buying a foreclosure can be an amazing deal. And with the right professionals on your side, you’ll minimize your risk and come away with a great investment.


If you’re considering purchasing a Santa Cruz home in foreclosure, please call 831.662.6522 or email me at Lauren@LaurenSpencer.com for more information.


For additional information please visit my home page at www.MySantaCruzRealEstate.com.


Links:


Purchasing a foreclosed property


Interviewing Real Estate Agents


Home inspector


 
 ]]> </description>
    <pubDate>Tue, 24 Apr 2012 01:01:00 -0700</pubDate>
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<item>
    <guid>https://www.mysantacruzrealestate.com/blog/how-to-buy-santa-cruz-foreclosures.html</guid>
    <link>https://www.mysantacruzrealestate.com/blog/how-to-buy-santa-cruz-foreclosures.html</link>
        <author>lauren@laurenspencer.com (Lauren Spencer)</author>
        <title>How to Buy Santa Cruz Foreclosures</title>
    <description> <![CDATA[ 
Consider buying foreclosed properties if you are looking for real estate bargains. Foreclosure is a legal process in which the insurer or lender repossesses the property from the borrower who defaulted on their loan.  Santa Cruz foreclosures are easy to find with just a little work.


Here are nine tips to help you find the best Santa Cruz foreclosures:


1. Find a real estate agent: The first step is to get a reliable and trusted real estate agent.  Never try to purchase a foreclosed property by yourself.


2. Get pre-approved for a loan: If you’re not paying cash, pre-approval is a must. It means you have met with a loan officer and he or she has “pre-approved” you for a certain amount you can afford.


3. Locate foreclosed properties: You can locate properties scheduled for foreclosure sales by checking classified newspaper ads for listings under Foreclosure Notices, Auction Sales or Sheriff’s Sales.  But your real estate agent is your best source


4. Check with local lending institutions and government agencies:  The FHA (Federal Housing Administration), HUD (Department of Housing and Urban Development) and local banks are also good places to find information about foreclosed properties.


5. Inspect: Have the foreclosed property inspected to determine its condition and market value. There may be problems that you and your agent can’t see.


6. Determine ownership: Identify potential ownership problems and find existing liens by having a title search conducted on the foreclosed property.


7. Contact the trustee: Contact the trustee of the foreclosure sale to inquire about the minimum bid the lender will accept.


8. Make an offer: Follow the submission guidelines carefully.  Many offers are rejected due to incomplete paperwork or missing signatures.


9. Obtain Title Insurance: Once you have purchased your foreclosure property, you must purchase title insurance, have the deed signed into your name and transfer the utilities.


Santa Cruz foreclosures can be complicated, so make yourself aware of your state’s legal procedures for acquiring foreclosed properties.  Your real estate agent should be a big help with this.


If you are ready to look for foreclosed properties, call me at 831.662.6522 or email me at Lauren@LaurenSpencer.com, and we’ll get this process started.


For additional information please visit my homepage at www.MySantaCruzRealEstate.com.


Links:


Get pre-approved for a loan


Determine ownership


Obtain title insurance
 ]]> </description>
    <pubDate>Sat, 14 Apr 2012 01:01:00 -0700</pubDate>
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    <guid>https://www.mysantacruzrealestate.com/blog/dont-let-a-short-sale-of-your-santa-cruz-real-estate-turn-you-into-a-fool.html</guid>
    <link>https://www.mysantacruzrealestate.com/blog/dont-let-a-short-sale-of-your-santa-cruz-real-estate-turn-you-into-a-fool.html</link>
        <author>lauren@laurenspencer.com (Lauren Spencer)</author>
        <title>Don’t Let a Short Sale of Your Santa Cruz Real Estate Turn You into a Fool</title>
    <description> <![CDATA[ 
If you are financially distressed, it might be time to cut your losses and minimize the damage to your financial future. If you’re feeling the economic pressure of an impending foreclosure, then consider putting your Santa Cruz real estate up for a short sale.


While it might seem like short sales should be a speedy process, they’ve been known to play havoc with many unsuspecting sellers. In honor of April Fool’s Day, we’ve created a list of the many short sale pitfalls sellers encounter.


• Settle your accounts – Strive to pay off all your other debt. Your bank might not approve your short sale application if you have judgments from other creditors pending.


• Pay your HOAs – Even if you’re defaulting on your mortgage, it’s important to meet your monthly Home Owner’s Association dues. Your HOA usually has to approve a short sale, so you definitely want to be in good standing when it’s time for them to sign on the dotted line.


• Make sure your buyer is pre-approved – Talk with your real estate agent and have them ensure that your buyer is legitimate. If there is any wavering on the buyer’s side, the bank might not want to deal with the hassle and you’ll be declined. 


• Get your documents together – Your bank will want copies of all documents concerning your Santa Cruz real estate before they even consider approving a short sale. Remember, they are forgiving you of debt, so do your best to make them want to help you.


• Don’t give up – Even if you’re declined for a short sale several times, there’s a chance they’ll approve you the next go around. Find out why you were declined and try to remedy the situation as soon as possible.


Don’t let a short sale fall through and turn you into a fool this April. Follow the tips above and you’ll be prepared to present a credible account to your bank.


If you’re considering a short sale on your Santa Cruz real estate, please call 831.662.6522 or email me at Lauren@LaurenSpencer.com for more information.


For additional information visit my home page at www.MySantaCruzRealEstate.com.


Links:


Short sales


Home Owner’s Association Declined for a short sale


 
 ]]> </description>
    <pubDate>Sun, 08 Apr 2012 01:01:00 -0700</pubDate>
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    <guid>https://www.mysantacruzrealestate.com/blog/good-news-for-santa-cruz-real-estate-buyers-and-sellers.html</guid>
    <link>https://www.mysantacruzrealestate.com/blog/good-news-for-santa-cruz-real-estate-buyers-and-sellers.html</link>
        <author>lauren@laurenspencer.com (Lauren Spencer)</author>
        <title>Good News for Santa Cruz Real Estate Buyers and Sellers</title>
    <description> <![CDATA[ 
There’s good news for buyers and sellers of Santa Cruz real estate: The U.S. Economic and Housing Market Outlook that came out the end of February is encouraging. According to this research done by Freddie Mac, both the economy and the housing market are showing cautious signs of recovery.


Here are some of the changes stimulating these improvements in both nationwide and Santa Cruz real estate markets:


• Loans that were seriously delinquent or going into foreclosure declined to the lowest quarterly share since the start of 2009, according to the latest Mortgage Bankers Association Mortgage Delinquency Survey.


• In January, existing home sales were at their highest since May 2010, according to the National Association of REALTORS®.


• Job gains have exceeded expectations for the past two months.


• In January, the unemployment rate fell to its lowest since 2009. In December, jobless claims were at their lowest level since 2008.


• Applications for weekly unemployment benefits decreased for the third consecutive week, to 348,000; the fewest since the first week of March 2008.


• Home builder confidence continues to grow.


• Households are paying off their debts and accessing credit more easily.


• Historically low mortgage rates continue. According to Freddie Mac, the national average rate for a 30-year, conventional, fixed-rate mortgage was a record low 3.92 percent in January.


Thinking of buying or selling Santa Cruz real estate? Please give me a call at 831.662.6522 or email me at Lauren@LaurenSpencer.com to talk about how I can help you take advantage of the upcoming spring and summer selling season.


For additional real estate information, visit my homepage at www.MySantaCruzRealEstate.com.


Links:


U.S. Economic and Housing Market Outlook


Mortgage Bankers Association


Unemployment rate fell to the lowest since 2009
 ]]> </description>
    <pubDate>Sat, 17 Mar 2012 01:01:00 -0700</pubDate>
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    <guid>https://www.mysantacruzrealestate.com/blog/get-a-deal-on-luxury-santa-cruz-real-estate.html</guid>
    <link>https://www.mysantacruzrealestate.com/blog/get-a-deal-on-luxury-santa-cruz-real-estate.html</link>
        <author>lauren@laurenspencer.com (Lauren Spencer)</author>
        <title>Get a Deal on Luxury Santa Cruz Real Estate</title>
    <description> <![CDATA[ 
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 and short sales.


• Research comparables. Investigate to make sure it’s actually a good deal by looking at other luxury homes that have sold in the area. Your agent can give you valuable information on comparables.


• Be patient. It’s easy to get anxious when it comes to making such a large purchase, but remember that these properties are in turmoil — which can take some time to resolve.


• Hire a home inspector. If you’re going to be investing big bucks, pay a home inspector up front to check out the home. Just because it’s a luxury property doesn’t mean that it hasn’t been neglected for the past couple of years. You’ll want to know what kind of damage and repairs you’ll be dealing with.


• Make an offer quickly. Other potential buyers and real estate investors will be keeping an eye out for enticing properties too, so be ready for competition.


• Have your finances together. Pay as much as possible in cash. It will be more enticing to the lender, who actually makes the final decision on a short sale or foreclosure.


If you want to purchase luxury Santa Cruz real estate at a great price, consider distressed properties going to short sale or foreclosure. Call me at 831.662.6522 or email me at Lauren@LaurenSpencer.com, if you’re ready to start looking or would like more information. 


For additional information please visit my website at www.MySantaCruzRealEstate.com.


Links: 


Interview Santa Cruz real estate agents


Short sales


Foreclosures
 ]]> </description>
    <pubDate>Sun, 16 Oct 2011 23:01:00 -0700</pubDate>
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    <guid>https://www.mysantacruzrealestate.com/blog/3-tips-to-get-short-sale-offers-on-your-santa-cruz-home-accepted-by-your-lender.html</guid>
    <link>https://www.mysantacruzrealestate.com/blog/3-tips-to-get-short-sale-offers-on-your-santa-cruz-home-accepted-by-your-lender.html</link>
        <author>lauren@laurenspencer.com (Lauren Spencer)</author>
        <title>3 Tips to Get Short Sale Offers on Your Santa Cruz Home Accepted by Your Lender</title>
    <description> <![CDATA[ 
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 jobb. reduced hours/pay at current jobc. have to move more than 75 miles from home to get a new jobd. death of a borrowere. divorcef. onset of a disabling illness


2. Negotiate with the buyer to exclude terms and contingencies that complicate the sale. Lenders do not like to accept short sales when they include time contingencies or when the short sale is contingent on the sale of another home.


3. Submit paperwork as a complete package. Ask your lender for a list of all documents needed. Fill out the paperwork and collect all other documents required. Make copies of everything. Put together a complete package, including all the documents your lender requested, and only then send the entire package to your lender. If the lender later tells you they can’t find a particular document, don’t waste your time arguing about it, just resend the information – it’s easy to do because you already have copies prepared


If you’d like more information on the possibility of selling your Santa Cruz home as a short sale, give me a call today at 831.662.6522 or email me at Lauren@LaurenSpencer.com.


For additional information please visit my website at www.MySantaCruzRealEstate.com.


Links:


Short sale


Hardship letter 


Profit and loss statement
 ]]> </description>
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