Many of the new housing tracts throughout the Santa Clarita Valley offered low and no down payment loans over the past two years. Many of these loans are coming due to reset in the next 12-18 months. Many borrowers will find it difficult to make these larger payments and may go into default. Although lenders will work will borrowers to avoid foreclosure at all costs. We will watch closely to see how this situation could adversely affect the home values in our community.
