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Santa Cruz County Short Sale Specialist

by Patti Lyles

Santa Cruz County Short Sale Specialist

Short Sale Specialist in Santa Cruz County

What is a real estate short sale in Santa Cruz County?

A quick sale in real estate, also commonly called a short sale, happens when a lender is willing to accept a lower pay off on a loan than what is currently owed due to the borrowers inability to continue making payments.

What does it take to qualify for a Santa Cruz County Short sale?

Short Sale Specialist Realtor in Santa Cruz CountyWhile lenders seem to be easier to work with lately regarding qualifications, there are usually three borrower qualifications that most lenders require for a Santa Cruz County short sale.

  1. Negative Equity - The proceeds from the sale of the property, after all closing costs
    are paid, are less than the amount currently owed on the property,
  2. Financial Insolvency - Financial insolvency means that the borrower has no other assets that could cover the deficiency (the difference between what is owed on the property and the proceeds from the sale)
  3. Financial hardship - Financial hardships that are acceptable do vary some from lender to lender, but the most common ones are; divorce or legal separation, loss of employment or reduction in income, job transfer or relocation, incarceration, medical emergencies or major medical expenses, death of a family member, vacant rental properties, damaged property, just to name a few. Most lenders believe that a short sale is not for home owners who simply want to sell, but for those who have to sell.

Is it possible for me to get money back for completing a short sale?

Until recent times, it was almost unheard of for a home owner to get money back in a short sale. Things have changed for the better. The HAFA program, backed by the US Government, allows homeowners $3,000 to use towards relocation expenses. In addition, some lenders will offer generous incentives of their own in addition to money offered through the HAFA program. We have seen home owners get as much as $35,000 back to complete a short sale.

Who will pay the Santa Cruz County short sale Realtors® commission?

In a short sale it is customary for a lender to cover all fees associated with the sale of the property, including your Santa Cruz County short sale specialist as well. In almost all cases, a home owner in hardship will pay no out of pocket expense to complete a short sale transaction.

How Can a Santa Cruz County short sale specialist help me?

As a Santa Cruz County short sale specialist, I have helped many home owners who are in a Short Sale Realtordifficult financial season get a fresh start with a short sale. Short sales are not part of our "basic training" as real estate agents, and are something that should only be left to those of us who are especially qualified and experienced. Experience is everything when it comes. I'll not only market your home in the traditional manor, but will guide you through this transition while simultaneously processing the short sale with your lender. Visit my website for more information on the short sale process.


Patti Lyles

License Number: 01385517

Century 21


~ Your Santa Cruz County Short Sale Specialist Realtor® ~


What's the best way to avoid ruining my credit?

DEAR PATTI: I'm behind on my mortgage payments on a house I own in Felton and probably will be foreclosed. People have told me to (1) do a "short sale" of the property, (2) give it back to the lender with a deed in lieu of foreclosure, or (3) proceed to foreclosure and then file bankruptcy. Please explain the pros and cons of each. Do I have to have a short sale before I can do a deed in lieu of foreclosure? What if I sell the property at market value, but that's not enough to pay all the debts? --Napin E.

DEAR NAPIN: A "short sale" means you sell the property for less than the mortgage balance at its market value and the mortgage lender agrees, in advance, to accept the net amount as payment in full to satisfy the mortgage.

Lenders can be very difficult about agreeing to a short sale. You need a listing agent experienced with short sales who can deal with your lender and who will insist you receive absolutely nothing from the sale.

Most mortgage lenders will not accept a deed in lieu of foreclosure. The reason is the lender then takes title "subject to" any liens or encumbrances you might have incurred during ownership. However, if you can prove to the lender there are no junior mortgages or other liens affecting title, such as unpaid property taxes, your lender might accept this alternative, which is cheaper for the lender than foreclosure.

If you let the property go to foreclosure sale, why file bankruptcy? That makes no sense unless you have other extensive debts such as credit cards you just can't afford to pay. Should you file bankruptcy while the foreclosure is pending, that delays foreclosure but doesn't prevent it.

Filing bankruptcy can be a major mistake, which will haunt you for years. Before you can file bankruptcy, federal law now requires you to get credit counseling.

If you sell the property at market value but that's not enough to pay off the mortgage and other costs of the sale, you can pay the deficit out of your pocket and walk away happy that you don't have a foreclosure, short sale or deed in lieu of foreclosure on your credit reports. Talk to your lender now to work out the best solution for both parties.

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Contact Information

Photo of Patti Lyles Real Estate
Patti Lyles
Century 21 Showcase, REALTORS
P.O. Box 67275
Scotts Valley CA 95067

DRE #01385517