In the Salinas Valley we are seeing high percentages of bank owned homes especially in North & East
Salinas, Seaside, Marina and South County areas.
Are any sellers in Salinas or surrounding areas concerned about how this might affect the value of their
home?
Foreclosures should be peaking this coming summer in North Salinas and East Salinas. Buyers who
bought property in 2004 and 2005 and used the 5 year hybrid loan product will see their loans re-setting
in 2009. We may continue to see foreclosures in our area well into the 2009 because for this reason.
Some buyers who bought in 2006 and used a 5 year hybrid may also lose their homes in 2010 if
they can not afford to re-finance if for example the value of their home has dropped significantly
since their purhcase. Many homebuyers were still using 100% financing as their main tool to
purchase homes in 2006 especially in North and East Salinas putting these homesellers at
a higher risk. Some lenders will help these homeowners by modifying their loans when the
time comes.
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444 South Main Street Salinas, CA 93901
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