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Foreclosures, Short Sales & REO's

Foreclosure Rates in Hawaii Remain High

Statewide, Hawaii had 706 foreclosures filed in June 2009, which was a decrease from the 816 foreclosures in May, but more than five times the 134 foreclosures filed one year ago. The state of Hawaii currently ranks 19th worst among states for its June foreclosure rate. This is equivalent to one filing for every 718 homes.  June’s statistics of foreclosures were compiled of 155 default notices, 460 trustee sale notices, and 91 lender repossessions. There were fourteen foreclosure properties sold in June, brining the year to date total to 301. The average sales price of foreclosures in June was $444,343, while the year to date average is $487,010.  The recent high numbers of Hawaii foreclosures may be in part, attributed to mainland banks now concentrating on Hawaii’s inventory after having dealt first with their many mainland foreclosures.

Thus far, statewide, there have been 3,805 foreclosures filed in 2009.  Maui County had 165 foreclosures. This was the worst area in the state, with 1 filing for every 393 properties; down 3.5% from May, but up 511% from June 2008.  Kauai County had 69 foreclosures, which is 1 filing for every 423 properties; down 11.5% from May, but up 360% from June 2008. The Big Island had 176 foreclosures, which is 1 filing for every 441 properties; up 5% from May, and up 935% from June 2008. The city and county of Honolulu had 296 foreclosures, which is 1 for every 1,131 properties; down 26% from May, but up 295% from June 2008.  We may now be seeing a peak in Hawaii’s foreclosure market. If so, then this is an optimal time to look for good buying opportunities.

Here are some key points to consider when buying foreclosed properties. The overall depreciation in Hawaii’s real estate market has increased the number of sales to first-time home buyers, who previously had been priced out of the market. Foreclosure prices are often significantly lower than the original loan on the home because, banks usually price foreclosures to sell quickly, and foreclosure prices don’t reflect any emotional attachments to the home. Foreclosures may be sold “as is” and without some of the traditional disclosure statements, warranties, and other documentation that serve to protect buyers in a conventional home sale. So be thorough with your research and inspect the home carefully to avoid any unanticipated costs.

If you need assistance in your search for a home contact a Hawaii Life Real Estate Agent.

 

*Numbers from RealtyTrac; includes commercial properties (e.g., time shares).

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Byron Barth

August 3, 2009

Mahalo, Dan — for your informative and somewhat sobering article. It’s sad to see so many foreclosures because it generally equals that many families and homes in turmoil. The psychological and collateral damage from such upheaval bears with it a heavy toll in a variety of forms. Hopefully, you are correct in that the peak in Hawaii’s foreclosure market has been reached. Aloha!

Byron Barth

August 3, 2009

Mahalo, Dan — for your informative and somewhat sobering article. It’s sad to see so many foreclosures because it generally equals that many families and homes in turmoil. The psychological and collateral damage from such upheaval bears with it a heavy toll in a variety of forms. Hopefully, you are correct in that the peak in Hawaii’s foreclosure market has been reached. Aloha!

Susanna Kunkel

August 4, 2009

Aloha Byron & Dan,
It is so sad. I believe Act 137 has contributed to this tragedy. Most of the Kauai foreclosures listed on RealtyTrac were never marketed on the MLS. That means the owners didn’t know that a short sale was possible and a much more positive solution for the homeowner as well as the lender. Ron Margolis and I are hosting a series of seminars this month to help get word out to Kauai homeowners about how to Stop Foreclosure using a Short Sale. It will also help buyers to better understand how to buy a short sale. Our goal is to get helpful information out to as many homeowners on Kauai as possible, and help turn this tide of foreclosures. Please help us pass this on to anyone who might be in trouble with their property. Mahalo! Susie

Susanna Kunkel

August 4, 2009

Aloha Byron & Dan,
It is so sad. I believe Act 137 has contributed to this tragedy. Most of the Kauai foreclosures listed on RealtyTrac were never marketed on the MLS. That means the owners didn’t know that a short sale was possible and a much more positive solution for the homeowner as well as the lender. Ron Margolis and I are hosting a series of seminars this month to help get word out to Kauai homeowners about how to Stop Foreclosure using a Short Sale. It will also help buyers to better understand how to buy a short sale. Our goal is to get helpful information out to as many homeowners on Kauai as possible, and help turn this tide of foreclosures. Please help us pass this on to anyone who might be in trouble with their property. Mahalo! Susie

Help to Avoid Foreclosure

September 4, 2009

Help to Avoid Foreclosure…

I’ll keep an eye out for more like this….

Help to Avoid Foreclosure

September 4, 2009

Help to Avoid Foreclosure…

I’ll keep an eye out for more like this….

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