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Santa Clarita: Foreclosure Frenzy! Low Inventory Meets High Seller & Buyer Demand! · Connor with Honor: AI, Real Estate and Real Life

• 0:00
  SPEAKER_00: Good day.
• 0:01
  SPEAKER_00: This is your foreclosures Wednesdays Wednesdays broadcast, February 28, 2024.
• 0:07
  SPEAKER_00: I'm Connor with Honor here in the Santa Crita Valley, serving Greater Los Angeles with regard to real estate.
• 0:12
  SPEAKER_00: Today the local inventory here throughout all of Santa Cruita Valley, 287 active real estate listings.
• 0:19
  SPEAKER_00: Now that's going to span between single-family residences, condominiums, and townhomes.
• 0:25
  SPEAKER_00: That's currently all that's for sale.
• 0:27
  SPEAKER_00: That is a very strong indicator of a seller's market, not just the low inventory, but also the high buyer drive.
• 0:35
  SPEAKER_00: If we had low inventory but no buyers, then it wouldn't be a seller's market.
• 0:39
  SPEAKER_00: It would more than likely be more of a buyer's market.
• 0:42
  SPEAKER_00: But currently, we do see little inventory and a very high buyer drive.
• 0:47
  SPEAKER_00: The loan programs out there aren't the ones back that caused the last foreclosure issue back in 2006-2007.
• 0:57
  SPEAKER_00: That was for reasons we had financing that people really weren't being vetted the way that they should have been.
• 1:04
  SPEAKER_00: Basically, if you had a heartbeat and some kind of an employment, you would be able to purchase real estate.
• 1:09
  SPEAKER_00: And in a lot of cases, people were really overextending themselves when it came to purchasing.
• 1:14
  SPEAKER_00: So looking at foreclosures today and any of the bank-owned stuff here in Santa Crita Valley, of these 287 listings, only a couple are in the notice of default variety.
• 1:24
  SPEAKER_00: That means that basically you have a property where the seller has been unable to continue to make their payments to the mortgage holder, the bank, and the bank then starts this process by notifying the court that you haven't made your mortgage payment.
• 1:38
  SPEAKER_00: And they do that by recording a notice of default with the court, putting them on notice, saying, hey, you know, this cat, we had an agreement.
• 1:45
  SPEAKER_00: He promised to pay me X amount of dollars per month to have this home, and now they've been unable to fulfill their obligation.
• 1:53
  SPEAKER_00: Therefore, we're going to go ahead and notify the court that, hey, we're going to now go after the seller, taking the court on notice, letting the court know that in fact the seller's not paying.
• 2:04
  SPEAKER_00: After that, it's going to really depend on the next happenings.
• 2:09
  SPEAKER_00: It could be that they continue the foreclosure, and at some point, sheriffs show up and they, after proper notice, potential court hearings, depending on if there's some kind of an other another issue.
• 2:24
  SPEAKER_00: Maybe it's not just a lack of employment.
• 2:26
  SPEAKER_00: Maybe the person that owns the home has a senior involved, somebody that needs help, an invalid type individual, unfortunately, but somebody of the older variety that can't really take care of themselves and they need that help.
• 2:39
  SPEAKER_00: That's one reason why it could delay that eviction process or those people leaving.
• 2:44
  SPEAKER_00: They could have special needs kids or any or even just kids.
• 2:48
  SPEAKER_00: There could be other reasons as well.
• 2:50
  SPEAKER_00: It gets the court's ear, and the court says, you know what, we can't have these folks move out at this time because they'll be practically homeless.
• 2:56
  SPEAKER_00: So it basically comes back on the landlord and they're going to have to eat it for a while, or the mortgage holder, whomever has that note on that property.
• 3:06
  SPEAKER_00: Just be weary.
• 3:08
  SPEAKER_00: There are times that these things move very quickly versus the things that you might have heard if you're sitting in a property, you're not able to pay your mortgage.
• 3:16
  SPEAKER_00: Just make sure you pay attention to all those notifications.
• 3:19
  SPEAKER_00: And there really is a point that it might not be a bad idea, and maybe attorneys will fight me on this, but it might not be a bad idea to talk to your mortgage holder.
• 3:27
  SPEAKER_00: But understand they're going to be coming after that obligation you owe them.
• 3:31
  SPEAKER_00: That's their whole purpose.
• 3:33
  SPEAKER_00: And once they take that and they move it to a debt collection company or something of that nature, then it's going to get a little bit more aggressive.
• 3:40
  SPEAKER_00: But at this time, very few foreclosures are on the market.
• 3:43
  SPEAKER_00: The notice of default filings can be considered a short sale.
• 3:47
  SPEAKER_00: We see those distressed properties too.
• 3:49
  SPEAKER_00: From an investor standpoint, it's not very often that you're going to find that super incredible deal unless basically those sellers don't really know what their property is valued at, and you try to approach it in that manner.
• 4:01
  SPEAKER_00: But then you have a lot of ethical concerns there.
• 4:04
  SPEAKER_00: And that's something that you have to remedy with yourself.
• 4:06
  SPEAKER_00: As far as my operational procedure, I've never liked taking advantage of anybody, so that's not a comfortable place for me.
• 4:12
  SPEAKER_00: Therefore, I don't play in that ballpark.
• 4:14
  SPEAKER_00: I keep it very straight with regard to real estate dealings.
• 4:18
  SPEAKER_00: Now, there's going to be a lot of information online regarding foreclosures, talking to people, how they can get a much better deal when purchasing real estate.
• 4:27
  SPEAKER_00: There are particular markets for that across the United States.
• 4:30
  SPEAKER_00: Southern California is too hot of a market to really have that pick up and become a thing.
• 4:34
  SPEAKER_00: I know I get plenty of emails every day from quote-unquote investors looking for that special deal.
• 4:40
  SPEAKER_00: And it kind of comes down to it, well, if I'm finding something so smokingly amazing, why would I work with an investor when that could be something that potentially could make somebody I'm close to make their portfolio better, or somebody that I currently have on my list, but some arbitrary phone call from an 800 number that's calling me wanting to find out if I have investments that they can get in on.
• 5:06
  SPEAKER_00: Again, we don't have that personal relationship.
• 5:08
  SPEAKER_00: So a lot of agents are going to steer clear of those types of endeavors and stay with the people that they know the best.
• 5:14
  SPEAKER_00: Because if somebody is willing and able to sell their house for less than what they owe, I would rather that go to somebody I know than somebody else.
• 5:22
  SPEAKER_00: That's just the way that is.
• 5:23
  SPEAKER_00: So let's get that relationship.
• 5:24
  SPEAKER_00: I'm Connor with Honor.
• 5:26
  SPEAKER_00: Let's work on it.
• 5:26
  SPEAKER_00: All right.
• 5:26
  SPEAKER_00: So foreclosures, we don't see that much.
• 5:28
  SPEAKER_00: Of the 287 listings that are currently advertised for sale in the Santa Cruita Valley, we have an extension or an increase of the coming soon listings.
• 5:38
  SPEAKER_00: So 19 of those properties are coming soon.
• 5:41
  SPEAKER_00: That's a 21-day period, and it can be less in some cases, but not more.
• 5:45
  SPEAKER_00: We're the agents going to use that for pre-marketing and advertising.
• 5:49
  SPEAKER_00: To be able to see those listings, all you have to do is just reach out to your local agent.
• 5:53
  SPEAKER_00: And if you don't have anybody, reach out to me.
• 5:54
  SPEAKER_00: And if you have somebody you hate them, reach out to me.
• 5:56
  SPEAKER_00: But anyway, I'll be able to send you those listings that fit your criteria of the coming soon variety.
• 6:02
  SPEAKER_00: Is there a chance we can get in?
• 6:03
  SPEAKER_00: Sure, there's a chance we might be able to get in early, but usually that doesn't help the process, even if you like the property so much you want to write an offer.
• 6:11
  SPEAKER_00: Usually the sellers in the coming soon faction want to have that property advertised and marketed to the entire world before they actually make a commitment to a single offer, or hopefully get multiple so they can counter back and forth and get the highest and best offer submitted by one of the people that wrote one of the offers on the property, at least via their agent.
• 6:32
  SPEAKER_00: So that's that.
• 6:34
  SPEAKER_00: Finally, let's talk about what somebody that makes 80 grand a year can qualify for at the current interest rates around 7%.
• 6:42
  SPEAKER_00: And if everything aligns properly, they're looking about a$400,000 purchase price, and of course, without any debts.
• 6:49
  SPEAKER_00: And then they also look at whether there's a homeowners association, so that would have to be zero to be able to purchase at$400,000, making the$80,000 a year.
• 6:58
  SPEAKER_00: Again, no debt.
• 6:59
  SPEAKER_00: There can't be an HOA.
• 7:00
  SPEAKER_00: There can't be any extra special taxes or Melarus on that property.
• 7:04
  SPEAKER_00: So it has to be something more than likely going to be located somewhere in Castac that doesn't have an HOA.
• 7:10
  SPEAKER_00: Melaruz, there are places in New Hall that also have that and fit that criteria.
• 7:15
  SPEAKER_00: And of course, Canyon Country, there are places there as well.
• 7:18
  SPEAKER_00: You might be able to find some obscure properties, depending on zip code out here, that aren't going to have a homeowners association or Melaruz, parts of Castac known as Valverde, they have that as well.
• 7:29
  SPEAKER_00: That is where the purchase power is going to be.
• 7:32
  SPEAKER_00: Now to find a single family residence at$400,000 is going to be very much impossible here in the Santa Cruz Valley cities.
• 7:39
  SPEAKER_00: But if we extend a little bit further north, 30, 40 miles, we can get out into the Palmdale Lancaster area into the Antelope Valley, and there you can find a single family residence all day long at a purchase price of$400,000, a little bit higher, a little bit lower.
• 7:53
  SPEAKER_00: So that's where that will get you if you happen to make$80,000 a year and you're looking to purchase real estate, but again, no debts.
• 8:01
  SPEAKER_00: And that next best step for anybody wanting to buy real estate is to definitely talk with a real estate agent that serves whatever area they can afford.
• 8:09
  SPEAKER_00: And I've served Greater Los Angeles, uh Greater Antelope Valley Board of Realtors and also the Southland Regional Association.
• 8:15
  SPEAKER_00: So I'm members in both boards, so I get both data sets so I can list and sell properties and both a lot easier than if I just decided to be a member of one board, which would be the SRAR, because while they are both boards of realtors, the Antelope Valley doesn't share their data.
• 8:32
  SPEAKER_00: So to really see what's for sale, you have to be a member of that board.
• 8:35
  SPEAKER_00: I can try to find an agent that has that membership and try to work through them.
• 8:39
  SPEAKER_00: But trust me, folks, having them pull properties like I pull properties for my buyers, it's difficult to have them to be that attentive.
• 8:46
  SPEAKER_00: So it's much easier for me just to join it myself, bite the bullet, and then work it out, which I've done very recently for some new buyers that I have, and they're fantastic.
• 8:55
  SPEAKER_00: So I'm looking forward to showing them houses this coming weekend.
• 8:58
  SPEAKER_00: Tomorrow we're going to be talking about the new housing here in Santa Cruita Valley, as I do every on Thursdays and Fridays, of course, an open house broadcast, Saturdays and Sundays.
• 9:07
  SPEAKER_00: I try to plug what I can in the newest news events for both those days, and then of course, back to market Mondays on Mondays and Tuesdays, just general real estate overview, and then Wednesdays back to foreclosures.
• 9:17
  SPEAKER_00: You see the drill.
• 9:18
  SPEAKER_00: I have my podcasts out there, my YouTube channel is well functioning.
• 9:22
  SPEAKER_00: When you're ready, let me know.
• 9:23
  SPEAKER_00: Foreclosures, they're out there, less than 1% of the market, so that indicates a very healthy market.
• 9:28
  SPEAKER_00: If you're reading online people saying the future is upon us and the market's going to end up collapsing, you want to find out what their whys are.
• 9:36
  SPEAKER_00: But also be aware there is a lot of deepfakes out there, bad information.
• 9:41
  SPEAKER_00: You want to find that person you trust, an actual live individual that's willing to help you out.
• 9:45
  SPEAKER_00: I'm Connor with Honor.
• 9:47
  SPEAKER_00: You can find me online.
• 9:48
  SPEAKER_00: I appreciate you watching this 28th day of February, 2024.
• 9:52
  SPEAKER_00: I'm Connor with Honor over now.