During the past Foreclosure Market and bank owned real estate market in the Santa Clarita Valley CA - After the collapse of the housing market during the end of 2006 and beginning of 2007, we had a lot to speak about concerning the foreclosed and bank owned homes. We quite the inventory or distressed real estate in the SCV and surrounding communities within Southern California.
Short sales, those homes where the homeowners experienced some sort of hardship, including getting the "pink" from their employers were aplenty.
(pink an industry term meaning: - to be served with a document indicating being laid off from a person's employer)
There were other short sales (short pays) where the homeowners were investors and had quite the portfolio indicating no doubt in the veracity of the current housing market. They apparently were looking for the stars when they should have been watching where they were stepping.
When the collapse happened, it's true that most home loans stopped. The banks required a moment to re-evaluate. 100% financing was over after a few months and there was a new client. The one who was wanting to be represented with the home they weren't able(or willing to) make payments on.
The "other new" client that arose were those who wanted to invest and those who were in the process of buying when the real estate market collapsed.
There were a lot of people that were hurt by the last distressed housing market. Today, most whom we assisted with short selling their homes are back and homeowners again. This time they have more skin in the game.
Skin being related to a larger down payment on the home they are living in. As I stated the 100% financing crowd is a thing of the past. Now they need 3.5% for an FHA loan and the home has to pass several tests or be on an FHA approved list. Most home buyers can purchase with varying levels of conventional lending models. Including 3, 5, 10, 15 and 20%+ down payment. VA - a home buyer can utilize a Veterans Administration Loan to buy real estate if they qualify and had an honorable discharge from military service.
The bottom line is in the heyday of the Santa Clarita foreclosure housing market, there were certain strategies that we used to assist our foreclosure and bank owned buyers when wanting to buy distressed real estate.
I'm Connor with honor and I'm glad to have been able to bring you this foreclosure and bank owned housing market update. During our time representing any sort of real estate buyer, we always do a foreclosure and distressed inventory search throughout the home buying process. This is because of how important I deem the purchase being in the best possible light for any of our real estate clientele.