Kauai Foreclosure Update for the week of October 24th – 31st
This week on Kauai, 4 properties were reverted back to the lender on the courthouse steps. 3 auctions were canceled and SIXTY auctions were postponed. Is this a reflection of some of the foreclosure freeze news? One can only guess, but perhaps. 11 new listings are distressed properties. Nine of them are REOs, and two of them are short sales. The distressed property market is primarily composed of two things:
- REO (Real Estate Owned)â€”These properties have already been foreclosed on by the lien holder, assigned to an asset man One agement company, and re-listed with an REO agent.
- Short Salesâ€”These properties may, or may not be in foreclosure, but the proceeds of the sale will be less than what is owed to the lien holder, and thus require lien holder approval.
This large house (MLS# 239920) is overlooking the Wailua River Valley. We don’t see many instances on Kauai where the owners take things out of the house and damage stuff in the process, but this is one of them. Cut pipes and a trashed in-ground pool are just part of the challenge. But hey, the prior owners paid $950,000 and then put a couple of hundred thousand into the home, so at a listing price of $319,000, there’s plenty of potential. Chances are this home will be sold before you read this blog post, but it gives you an idea of the opportunity here. If you are looking for a Kauai REO, or Kauai short sale, I can send you any new listing as soon as it pops up on market, like magic, because the good deals do go fast.
Tiled floors and large wooden sliding doors to rim
Melia St. overlooking the Wailua River Valley
The house below, (MLS# 240029), is a spacious 5 bedroom, 2 bath Kapaa home (3,029 sq. ft.) on a 1+ acre lot at the end of a cul-de-sac road. This home has been updated since it was built in 1987. Has mountain and distant ocean views, and a large wrap around covered lanai. Listed as a short sale earlier in the year at $899,000, you could not rebuild this home for twice the price! Again, this will probably not last long.
Over 3,000 sq. ft. with ocean views, this country home needs cleaning up, but has solid value
This Princeville home, (MLS# 239975), is located in the Visitor Destination Area. Great curb appeal with professionally landscaped grounds. Two stories with vaulted ceilings in great room and dining area. Master suite and exercise/office space on top level with lanai overlooking green belt with distant ocean views. This home was foreclosed on the courthouse steps in Lihue on May 20th, 2010. In this case, it took five months before this property got repossessed and re-listed. Hard to imagine why it takes so long, but, it does. Priced at $569,000, this new Kauai REO listing continues the trend of good quality homes in the $500-$600 thousand range, in the highly desirable north shore community of Princeville, Kauai.
White contemporary kitchen in a two-story Princeville REO
Pepelani Loop, walking distance to the Makai Golf Course
Distressed Property Tip: When purchasing a bank-owned property, most asset managers prefer CASH. If you enter an offer at say $569,000 on this home ($30K above asking price) with 20% down, and a conventional conforming mortgage, and another offer comes in at $535,000 all cash, most of the time, the bank’s asset manager will choose the CASH offer, even though it is lower.
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