Could the past loan modifications create the next distressed housing market

    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

    Loan Modification interest rate adjustmentsCurrently, we are within the “adjustment” time frames of the Loan Modifications that were started five years ago.

    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 🙂

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    Paris and Connor MacIvor

    Connor and Paris MacIvor are in the Top 1% of Realtors Nationwide, starting their real estate business in 1998 with RE/MAX Gateway - Santa Clarita Valley and Valencia CA. Their becoming licensed real estate consultants and representatives came from the horrible experience they had when they bought their first home. There were many things that the agent they had hired did not explain and disclose, which per law he should have. Getting that agent on the phone after they closed escrow and after he had gotten paid was impossible. Paris and Connor called the broker, the board of realtors, the office manager and all they received was the promise of a phone call back. The remedy did come, but not as fast and in the way they wanted. That act - that bad agent was the reason why Paris and Connor became Realtors. That was all they needed to vow to never let the same fate befall anyone else, that befell them. Today Connor and Paris are focused on client service. Protection and top-shelf service with regard to their real estate clientele. They primarily work within the Santa Clarita Valley and Valencia CA. However, for a referral, where 80+ of their business is referrals they have License and Will Travel to other parts of Ventura County, Los Angeles County, and Orange County to handle real estate transactions for those who trust their real estate operation. Writing on their Real Estate Blog is a passion. is where you will find over 10,000 real estate articles. Go to to listen to their latest real estate radio broadcast.

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