Short Sales have become the new norm in today’s real estate market and Kauai is certainly no exception. In fact as we enter into the Spring market (not generally as robust a selling season on the neighbor islands as on Oahu, which is the state’s “urban” market), Short Sales on Kauai comprise about 20% of the markeplace and REO listings (bank-owned foreclosures) comprise about 15%.
On April 5th, the Treasury Department started its new HAFA (Home Affordable Foreclosure Alternative) program, which will benefit both buyers and sellers and well, the entire marketplace. If an individual who is unable to get a loan modification through the HAMP program qualifies for HAFA, the bank’s will provide the listing price or net price the bank will get to the listing agent PRIOR to listing. This is huge. Additionally, the bank will forgive any deficiency amount, and may provide $3,000 in borrower relocation assistance, to the family or individualsÂ that are the short sellers. When the offer is presented on the short sale ( and this part is encouraging for Kauai buyers), the bank must accept or deny the sale within 10 days.
Check out this video which explains HAFA. If you are aware of any homeowners that may be a candidate for this type of service anywhere in America, feel free to refer them to me as I am part of an ever-growing network of CDPEs (Certified Distressed Property Expert) around the nation. If you are interested in purchasing on Kauai, I do track all short sales and foreclosures and am happy to send you a list of opportunities specific to a type of property or area of our island. If you want to see if you may be eligible for the new government programs, take a short survey on my foreclosure website.