13 – the number of Foreclosure listings across the Santa Clarita Valley Cities as of the time of this posting.
Additional Resource: View the latest Santa Clarita Foreclosure Listngs
We have see this number in the hundreds within the past few years. In fact, the only sale type for several months back in 2009 was the Real Estate Owned property, aka the “Bank owned foreclosure”.
The future of real estate is the standard sale, at least for now.
After the “investor” fall off, late in 2013, we see that the owner occupant buyer has had to deal with the housing prices that have increased dramatically during the previous 22 months.
We want to give you the intel as it relates to the current state of the Santa Clarita real estate market.
We have done so on our Realtor Blog that you can access here.
Please check out our latest article that drives the point home, reference to the current levels and historic Housing prices across the SCV cities.
It’s quite eye opening.
Loan Modifications and Interest Rate Adjustments
These Loan Mods promised to assist the homeowner with making their payments more manageable so they would not short sale or foreclose.
Typically the Loan Mod reduced a homeowner’s interest rate. Some were taken to as low as 2%, while very few received that awesome rate, some did.
That was after their loan “payback” time frame was increased to 40 years, from 30. So, for the next 5 years, they were okay. No interest rate increases during that time.
Yea for the Financial Institutions – an additional 10 years of interest (sarcasm intended…)
After the 5 years? Well, that’s anyone’s guess – that was the part of the loan Modification that had to be negotiated.
I’d imagine we are going to see some fallout from those interest rate increases. While the real estate market has recovered a bit, it has not all the way, and lending still remains constrictive as compared to the past.
If a person was given a stellar rate, but bought their home at the height of the real estate market, they are still going to be upside down on the home’s value. Further Resource: See what any home is currently worth to see if there is equity or not.
Now, they have a 2% rate, which is great, but that rate is going to slowly increase up to the 10 year point.
In some cases, going to where it may have been and in others, going higher than it ever was… 🙁
Ask your real estate professional what you can expect if you did a loan modification during the past several years.
Reach out to my team and I when you need assistance and we will give you the best intel possible. We happen to know people 🙂