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Valencia REOs – With the recent surge in foreclosures across America, banks and corporations alike own homes in Valencia via the foreclosure process. Bank owned homes in Valencia are also called REO’s. REO means Real Estate Owned. It’s just a term used for foreclosures owned by banks, and generally used only by insiders. The public at large refers to these types of homes simply as Valencia Foreclosures! So let’s keep it simple…when you see an advertisement for "Foreclosures, REOs, and Bank Owned Homes" they’re talking about one thing – foreclosures.
Valencia Bank Owned – There are hundreds of banks across America that have an interest in Valencia Real Estate. These banks are in the business of lending out money, not owning homes. But when a borrower defaults on a mortgage, the bank will initiate the foreclosure, and begin what is generally about a 6-7 month process to take back the property. Once the home becomes a Valencia bank owned property, it generally will hit the market anywhere from weeks to a few months after the foreclosure has been finalized. Buyers have been focusing on these Valencia bank owned homes in large part because they are priced very competitively with other homes on the market, and therefore offer a great buying opportunity, especially with today’s low interest rates.
Valencia Auction Homes – There are two types of Valencia Auction homes. The first is when the bank who has an interest in the Valencia home, initiates the foreclosure process and rounds that process out with a trustee sale, or auction. It’s an all cash event at the county court house steps where the bank/lender tries to sell the property prior to it becoming a Valencia REO/bank owned. The starting bid tends to be the defaulted borrowers loan amount, and often time that loan amount is well over the market value, which means the home will probably end up being bank owned due to not successfully selling at the Trustee Sale Auction. There is another type of Auction that is being common, and that’s when the banks take a portion of their bank owned homes in a given area(s), and hold a big event to sell them to the public at what tend to be very low starting bid amounts. They tend to always get bid up near market value, and that method usually isn’t the best from our experience. Especially given the fact that there tend to be huge buyer premiums at many of the Valencia auction events.
Valencia Pre-Foreclosure Homes – Homes in Santa Clarita that are listed as Pre-Foreclosures, mean that the owner/borrower in the home is behind on their mortgage payments and are somewhere in the foreclosure process that usually takes about 6-7 months to complete. Often times these foreclosure homes don’t show up on anyone’s radar until the bank/lender has issues the home a Notice of Default, which generally happens after 3 months of the borrower being late. Quite frequently you will see a home listed as a Santa Clarita Pre-Foreclosure, this will generally be a home that is a Santa Clarita Short Sale (described below). Homes in Santa Clarita that are pre-foreclosures, can represent a great value to a buyer if the bank handling the foreclosure is cooperative, and if the buyer has the patience to wait out the bank for an approval on the homes sale. There are some investors who approach home owners/borrowers who are in the Pre-Foreclosure process (about to get foreclosed on), and will make an attempt to save them from foreclosure with some sort of financial deal or offering. Owners in default must be weary of such offers, as there are many of them when you’re about to be foreclosed on, and they’re generally not from reputable sources.
Valencia Short Sales – One of the hottest topics in Valencia real estate is short sales. Short Sales happen when an owner elects to sell his or her home, but they owe more on the mortgage than what the current market value of the home is. The seller hires a Realtor to list the home for sale, usually at or just below the current market value, solicit offers, and once offers are received, the Realtor negotiating on behalf of the owner will ask the bank/lender to approve the home to be sold for less than what is owned on the loan(s). The bank is being shorted what they’re owed – hence – a short sale. This forgiveness of debt, if forgiven (and many are), may have to be claimed as income by the borrower who is receiving this form of debt relief, but as always, they need to seek wise council first (attorney, financial advisor), before deciding to sell as a Valencia Short Sale, instead of letting their home get foreclosed on by the bank/lender. Buyers have been flocking to short sales and Valencia bank owned homes because they represent great deals that tend to be very competitive and sometimes a bit below market value.
Valencia Foreclosure Home – A home that’s listed as a Valencia Foreclosure Home is simply a home that has gone through the roughly 6-7 month foreclosure process, became a bank, lender, corporate owned home, and is now considered and referred to as a Valencia Foreclosed home. These homes also are known as Bank owned homes and REO’s. When looking for a home to purchase in Valencia, it’s wise to consider a foreclosure due to their highly competitive, often below market value prices. |