“The vast majority of residential foreclosures being conducted in Hawaii are proceeding under a state law that is more than a century old, provides no court oversight and is widely panned by consumer advocates for failing to adequately safeguard the rights of homeowners.

One expert who has analyzed foreclosure laws nationally says Hawaii’s 1874 law is among the weakest in the country, partly because it allows a home to be sold relatively quickly without safeguards common in other states.” CLICK HERE TO READ THE ENTIRE ARTICLE

Here a few simple rules if you can’t make your payments or if it looks like you are going to be foreclosed on your home.

1.  Talk to the lender. Many people have told me that if you keep a line of communication open with the bank, they may have some latitude in giving you more time to work things out.  If they won’t give you more time, then at least you will know their plan and how you will have to work within it.

2.  Be realistic. If there is no way you can save your home, then accept that and try to use the foreclosure to your advantage.

3.  Get legal advice. A foreclosure is no small thing and it is important that you to speak with a qualified attorney so that you know what rights you might have.

SEARCH FOR YOUR HONOLULU HOME

If you would like to discuss your real estate needs, feel free to call me at 808-737-2093 or toll free at 877-737-2093.  You can email me at keahi@lava.net.

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“By county in Hawaii, Honolulu had the most filings at 342, but it had the lowest rate, at one filing for every 986 households.”

CLICK HERE TO READ THE ENTIRE ARTICLE

Just a bit more good news that may be pointing to an improving urban Honolulu real estate market.

SEARCH FOR YOUR HONOLULU HOME

If you would like to discuss your real estate needs, feel free to call me at 808-737-2093 or toll free at 877-737-2093.  You can email me at keahi@lava.net.

Video Blogs

Keahi’s Resume

Honolulu Real Estate Is A Good Investment

Why A Buyer Shouldn’t Buy

Supply Of Honolulu Homes

Honolulu Home Median Price of $1,000,000

Honolulu real estate makes a lot of sense over 10 years

How To Make Disclosures

Buying more might make your retirement better

Under New Rules-Lenders Even More Important

Sellers Beware Of Company Addenda

Sellers Get Your Surveys In Advance

Are Realtors Paid Too Much?

SEARCH FOR YOUR HONOLULU HOME

If you would like to discuss your real estate needs, feel free to call me at 808-737-2093 or toll free at 877-737-2093.  You can email me at keahi@lava.net.

More Video Blogs

Keahi’s Resume

Honolulu Real Estate Is A Good Investment

Why A Buyer Shouldn’t Buy

Supply Of Honolulu Homes

Honolulu Home Median Price of $1,000,000

Honolulu real estate makes a lot of sense over 10 years

How To Make Disclosures

Buying more might make your retirement better

Under New Rules-Lenders Even More Important

Sellers Beware Of Company Addenda

Sellers Get Your Surveys In Advance

Are Realtors Paid Too Much?

“To Whom It May Concern:

This letter is a explanation of our financial hardship for short sale documentation.  At the time I bought a home, my wife and I were full time employees of long standing companies.  Upon the harsh economic times, lay offs were inevitable and my wife and I both found ourselves laid off.  Not to mention, a baby on the way.  We were unprepared for this unknown fate and as a result, have not been able to make our mortgage payments.

The current market conditions resulted in an under appraised home.  We have both been laid off for almost a year, thus depleting our savings.  Although our efforts to find new jobs has been a full time job in itself, no jobs have become available in this area.  I finally received a  job offer in another state, but the pay is much less and my wife is staying home with our new baby.

I feel certain that a short sale is the best option for us to get out of this situation and hopefully move forward with our lives.

Thank you in advance for allowing us this opportunity to short sale on our home.

Please do not hesitate to contact me and our Realtor who is assisting us in this entire transaction.”

CLICK HERE TO READ THE ENTIRE BLOG.

SEARCH FOR YOUR HONOLULU HOME

If you would like to discuss your real estate needs, feel free to call me at 808-737-2093 or toll free at 877-737-2093.  You can email me at keahi@lava.net.

More Video Blogs

Keahi’s Resume

Honolulu Real Estate Is A Good Investment

Why A Buyer Shouldn’t Buy

Supply Of Honolulu Homes

Honolulu Home Median Price of $1,000,000

Honolulu real estate makes a lot of sense over 10 years

How To Make Disclosures

Buying more might make your retirement better

Under New Rules-Lenders Even More Important

Sellers Beware Of Company Addenda

Sellers Get Your Surveys In Advance

Are Realtors Paid Too Much?

“The good news is, on April 5, this frustrating system will change at least for some buyers and sellers. That’s when the federal government will begin to provide financial incentives to lenders to do more short sales. The rules also help standardize the process, so your chances of negotiating a distressed-property bargain will increase.” CLICK HERE TO READ THE ENTIRE WALL STREET JOURNAL ARTICLE.

Sounds like good news for buyers and sellers.  Let’s see!

SEARCH FOR YOUR HONOLULU HOME

If you would like to discuss your real estate needs, feel free to call me at 808-737-2093 or toll free at 877-737-2093.  You can email me at keahi@lava.net.

Watch My Video Blogs

Keahi’s Resume

Honolulu Real Estate Is A Good Investment

Why A Buyer Shouldn’t Buy

Supply Of Honolulu Homes

Honolulu Home Median Price of $1,000,000

Honolulu real estate makes a lot of sense over 10 years

How To Make Disclosures

Buying more might make your retirement better

Under New Rules-Lenders Even More Important

Sellers Beware Of Company Addenda

Sellers Get Your Surveys In Advance

“Now, a different breed of flipper is proliferating: one who seeks bargains at foreclosure auctions. Unlike the boom-time flippers, the latest generation needs cold cash, lots of local-market knowledge and strong nerves.”

CLICK HERE TO READ THE ENTIRE WALL STREET JOURNAL ARTICLE.

Is the Honolulu real estate market poised to see a gaggle of flippers jumping into the market (we saw many playing in the last up cycle)?  We may see a few getting into the game, but I don’t think we will see the volume that were playing in 2004, 2005 and 2006.  Here is why.

1.  Lack of opportunities. Core Honolulu has few foreclosures and those that do come up tend to attract very competitive buyers.  They seem to sell close to current market values and therefore there is not a great deal of room for making a quick profit.  No pun intended, on the flipside, if you are willing to look in outlying areas or on the neighbor islands, then you may find more home and condo options.

2.  Lack of financing, difficulty getting it and larger down payments.  Lenders have made qualifying guidelines very onerous and therefore it is difficult to get the necessary investor financing.  As an investor, expect to be required to put 25% of the purchase price down with the balance coming from the lender.

3.  Cash is king. Not only have down payments increased, but also many REO lenders are requiring quick closes and larger deposits.  This means you will need to have your cash on hand.  To bid at an auction you are required to have a non-refundable cashiers check for 10% of the price you are willing to pay.  If you don’t perform than kiss your money goodbye.

If flipping does begin to take off again, it will be for those experienced investors who have the intestinal fortitude and cash to live with the risks inherent in this sort of purchase.

SEARCH FOR YOUR HONOLULU HOME

If you would like to discuss your real estate needs, feel free to call me at 808-737-2093 or toll free at 877-737-2093.  You can email me at keahi@lava.net.

Not mentioned in the article, but important to consider, is the belief that if a buyer can only find a “distressed” property, a great buy shall be had. This may or may not be true, consider these thoughts.

1.  Compare any property to the relevant active, pending and sold listings to determine if the price you are paying is appropriate.
2.  Always have a home or apartment inspected by a professional inspector. Given the magnitude of the sums involved in real estate purchases, it is always, did I say always, a good idea to hire a qualified home inspector.  If nothing is found you can sleep better when you move in, if there are issues, whether or not a seller will repair them, at least you will know what you are getting and can plan to deal with the problems.  Paragraph C-51 of the Hawaii Association of Realtors Purchase Contract, allows the buyer a period to inspect the property and if the buyer becomes uncomfortable with buying the property, they may cancel the deal during this time frame and get their deposit back.
3.  Distress properties can be very good buys and I have seen buyers get terrific purchases through properties that are not distressed.  Again, take each property on its own merit, do your research and make you offer based on your estimate of the home’s market value.  Just because it is a foreclosure, REO, bankruptcy, sheriff’s sale or some other form of distressed property, don’t assume it is a great deal.
4.  Determine your ability and desire to fix things. If you aren’t handy and don’t have weekends and evenings to work on your home, you will be better off buying a house that requires no work.  Remember, many distressed properties were not well taken care of by the previous owner and could require a great deal of work.

SEARCH FOR YOUR HONOLULU HOME

If you would like to discuss your real estate needs, feel free to call me at 808-737-2093 or toll free at 877-737-2093.  You can email me at keahi@lava.net.

The Honolulu Advertiser led with the headline “Hawaii foreclosures tripled in November”. My initial reaction was that things are really bad and that I should be fearful.

The Star Bulletin’s headline read, “Hawaii falls to No. 28 in national foreclosures”. After seeing this, I had the impression that things are improving because we must have fell from a worst position to a better place.

Pacific Business News played it straight with a headline that read “Hawaii foreclosures 28th in U.S. in November“.  This statement made me read the article to determine whether or not this is good or bad.

In this case, I feel the Honolulu Advertiser’s headline is trying to play on our emotions (in a bad way) and I wish they would have just given us the facts and let us decide from there.

CLICK HERE TO READ THE HONOLULU ADVERTISER ARTICLE

Senate Bill 1137 that went into effect on Sept. 8 imposes new requirements on lenders to make contact with homeowners prior to filing for foreclosure. A total of 16,352 notices of default were filed in September, down from 42,790 in August.”
CLICK HERE TO READ THE PBN ARTICLE

1.  Be patient-the lender has to approve the sale and this could take 2 weeks (right!) to 2 months (more realistic).  Don’t buy a short sale if you have to move or close on a specific date, the approving lender will have its own agenda.
2.  Be ready-for the lender to approve the sale subject to you agreeing to increase the price.  Since this is possible, you may want to negotiate a lower price in the beginning to allow for the increase in price.
3.  Be ready again-since many short sale sellers are in financial difficulties, don’t be surprised if a foreclosure is filed.  Also, if a seller files bankruptcy you will need to go through the Bankruptcy Court to get your deposit back (it becomes part of the Bankruptcy Estate).  If a foreclosure or bankruptcy are filed the seller may not be able to sell the home (you will have to deal with a Foreclosure Commissioner or Bankruptcy Trustee).
4.  Be a planner-manage when you incur costs.  If the sale is not approved you will lose any fees you have paid for inspections, financing, etc.  Suggestion, start absorbing costs once the sale is approved.
5.  Be calm-short sales can go smoothly, however, normally there are many bumps and disappointments, be ready and realize any problems are just part of the process.

In general, it is fine to buy short sales, but they are not the only way to get good value in this market.  Call me at 808-737-2093 (toll free 877-737-2093) to discuss ways to find the best buys on Oahu.

OTHER POSTS WORTH READING!
Honolulu Rental Rates
Loans For College Condos
The Value Of A Realtor
Realtor Code of Ethics
Determining Offering Prices
Pricing Your Home
Long Term Investment Makes Sense
Honolulu Schools