Kauai foreclosure update for the first 9 days of November.
Well, the weather is FINALLY cooling off on the island of Kauai. The trade winds are blowing, and the summer may finally be behind us. The distressed property market slowed just a little bit during the first nine days of November. Of the 115 foreclosure sale auctions scheduled for the first seven business days of the month, only one was foreclosed on, and that one by Aurora Financial. The home was reverted back to the lender for $849,000, and will most likely show up as an REO listing for somewhere between $385,000 to $425,000. Go figure!
Of the first twelve sales to record in November, one was an REO, and one was a short sale. That’s a pretty low ratio of distressed property compared to total sales, but that number will probably wind up at 30%-40% of the sales by months end.
Only a couple of new listings to share for those bargain-minded buyers. Great time to buy! Interest rates around 4%. USDA financing available again with ZERO down for primary residence.
Over 10,000 sq. ft., offered at $244,900, and lots of possibilities in Hanapepe
A new Bank of America REO, (MLS# 240162), is located in Hanapepe. Over 10,000 square foot lot on the rim overlooking rolling acres of State Ag land (formerly leased as sugar cane). Lots of privacy and unobstructed views from backyard. Room for garden and extra storage. Cedar home with vinyl siding features 3 bedrooms, and 2 baths. Open kitchen and dining. Vaulted ceiling in living area. 2 car carport. Handicap accessibility is a plus.
Great views from second unitâ€”possibly a rental
2,458 living sq. ft. in two structures, on a good-sized Lihue lot
This house, (MLS# 239792), has investment potential in Lihue. A short sale priced at $439,000, this price is not bank-approved, and it may even sell for less. Two rentals. Main house is 1,732 sq. ft. with 3 bedrooms, 2 bathrooms, and a large family room/office with private entrance.
ADU (Additional Dwelling Unit) is a spacious 726 sq. ft. and has 1 bedroom, and 2 bathrooms. Deck off the living area allows for great trade wind flow. Hard to cash flow a property like this if you paid $685,000, which is what the sellers paid in early 2006.
But if you can pick it up for under $400K, this may be a solid opportunity. With B of A, once the lender comes to an agreement with the buyer, the deal is taken to the investor who may make last minute changes, adding additional costs that may fall upon the buyer. It’s good to expect the unexpected when purchasing a short sale. If the unexpected doesn’t occur, you’ll be pleasantly surprised, and hopefully get the deal you want to.
Distressed Property Tip: When purchasing a short sale, be prepared for additional costs not associated with traditional sales. For instance, in this Bank of America short sale the settlement fee at closing may be between $1,000 and $1,500 dollars. B of A only pays $750 for settlement fee. So, the additional cost will often be passed to the buyer. If you are prepared for these little adjustments, the short sale process will be less stressful, and hopefully go smoother for you.
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