The questions come frequently about foreclosures in the Santa Clarita Valley:
- Are there going to be more foreclosures released?
- Are the Short Sales that don’t get approved going to be on the market as Bank Owned?
- What is happening with the Banks, are they running low on REO inventory?
With Regard to having more Foreclosures Released onto the market for sale:
You betcha. There will be a huge amount of inventory in the future (it does not have anywhere else to go!). One of the banks that we represent with the sales of their REO, Real Estate Owned, properties has “rumored” that first quarter of 2011 will set a new benchmark for Foreclosure Releases.
What happens to the Short Sales that are not approved?:
Depends. They have several fates. First, the foreclosure process has to be fulfilled. They can be sold at an auction to anyone. The property can be placed onto the Original Bank’s Balance Sheet under the REO category and then placed onto the market for sale. Some will get caught up in Bulk Sales (where singular packages containing many REO properties are prepared, evaluated and sold in that form).
Are banks running low on Foreclosures?
Not only are their coffers overflowing – There are more coming in the form of Adjustable Interest Rates causing homeowners to have an increase in payment owed each month. Also – Balloon payments for the Negative Amortiziation products that were sold are starting to come due.
Within the Santa Clarita Foreclosure World – you will want to stay in contact with your real estate agent. Keeping them searching – we do that for our clients – all we need is a target property type so we can set the Foreclosure Search in motion. We have posted all of the current Santa Clarita Foreclosures here for your viewing.