About Short Sales

Hawaii has always been known as a tropical island paradise, a dream vacation, with it’s perfect weather, white, sandy beaches and warm, loving people. But what about our real estate market? As those of us who live here know, the late 80′s were an interesting time. Suitcases of money, hand-delivered by Japanese business men, smelling deals.

All of a sudden, all that glitters was gold in Hawaii…..Homes were purchased as regularly as sipping water. Loans were made to anyone who could fog a mirror. Home owners were stripping the equity out of their homes just for the heck of it and spending it on fruitless items and activities.

Much like the waves that coming crashing on our shore, so did our real estate market. Now the tide is sucking back out to sea. Home owners are baffled on how to sell their property in this economy. People that actually want to buy Hawaii property can barely qualify to get a standard loan, if at all. Most Hawaii home owners owe more on their mortgage than their property is worth, or at least, have no equity left in their property in this market.

The real question is, what is the best way to sell our Hawaii house in the current market, with a Realtor right? The answer is usually NO. 99% of Hawaii Realtors lack the creativity to get the job done right. Most are one dimensional thinkers and are not interested in the home owners best interest. Most just list a property and continue to tell the home owner to keep dropping the price hoping it sells.

Several Hawaii home owners actually are over leveraged. This means, they owe more on their mortgage than the house is currently worth in our market. The only way to sell a property in this situation is to pay the mortgage company extra money just to sell the house to a new buyer at an already discounted price. Stupid, right?

In this economy, even the banks, as we have seen in the news, are feeling the effects of the recession. Since several Hawaii home owners are in difficult situations, they are asking the banks to accept a short sale. This is where the bank will take a payoff of less than what is currently owed on the mortgage.

If no offer comes in on their property and the home owner has only one loan in place, they may wish to consider a deed in lieu of foreclosure. Be warned that both of these exit strategies will affect their personal credit to a degree. Also, they will need to consult with a professional that has at least 7-10 years experience in this field rather than some wanna-be investor hoping to make a quick buck.

There is no better exit strategy for Hawaii home owners right now that to offer owner financing to new buyers. Again, you will want to consult a local Hawaii professional, that has experience with this, so that you do it right the first time and avoid legal issues down the road.

For example, a mortgage take over program might be an option. This is where a new buyer can come in and actually begin making the monthly mortgage payments. This would immediately alleviate the pressure from the home owner and slide a new buyer into the property at the same time, thus creating a win-win situation. Again, please consult a professional company like IBuyHousesHawaii.com before making any decisions.

All of America, including our Aloha State has been rocked by the current economy. If you need to sell your property and you do not want to wait 6-months to get it done by repeatedly dropping the sales price. In many situations using a Realtor is counter productive to actually selling the house and will get the home owner in more financial difficulty than before. This actually happened to me with a large national company with offices here in Hawaii. Never again.

Homeowners are feeling the pressure of not being able to pay and see the possibility of foreclosure. However renegotiation of home loans had become an alternative to these problems.

If you are still stable financially and have a good credit rating then refinancing is the best option for you. Meaning you can go to a lender or bank and make new loan with better interest rates and more manageable payments.

A financial counselor or banker can help you see the details of your loan, re financing is a good help if your looking for a good cash back.

But if you are having problems regarding your earnings. Where in you wouldn’t be able to change your cash flow with in a certain time it would be better if you re negotiate your loan, meaning you ask for the lender to adjust the time frame of your payment into a more longer year so that you could come up with the amount and would be able to pay in exact schedule. Because extending the number of years of payment means lesser monthly or annual cost.

This would help you avoid home foreclosure.

Lending institutions would love re negotiations. why? the longer you pay you’re debts the more interest they put on you. but as a home owner with no options this could just be a temporary solution for them to keep their property.

Just put in mind that everything is temporary. Cash flows changes from time to time if financial situations gets better you could always pay your debt and avoid those financial institutions to put more interest on your loan. So start now and do research on how to get you financial situation better.

If there is one asset a Property Realtor have that would be REO. This person owns the property temporarily for the purpose of sales. Mortgaging is a social routine in the U.S There are people who make their properties as a form of collateral for them to be able to borrow money from banks or in the government itself, these properties are given in exchange for money.

But there is period of time where borrowers must pay, in an event where borrowers cannot pay the amount borrowed, the property would be taken away from them in legal way and will be sold by the lienors or investors.

Foreclosed properties are being advertised by businessmen through magazines or over the internet, this is not to exploit the primary property holder but because in the law of the Government in the United States there is a period of time where the owner is informed to pay back for his property.

However, if he does not come up with the said amount or would not be able to pay, then foreclosure sale is then legally advertised.

There are a lot of complaints against foreclosures, a lot of civic rally happens almost everyday because of that arising problem.

The act of foreclosing a property means discontinuing the right of the primary owner to his property. In the group they have their communicator which would let realtor businessmen knew their sides and beg to place the property in abeyance.

Its not just the real estate Investors who are involved in this kind of business the government itself , they will sell these properties to banks or by sheriffs too. which has become a very profitable business for both.

In order for them to gain more profit they advertise their business as possible as they can and search for more foreclosed properties. knowing the potential of the business. They like it very much motivating as much people as they can to join their business.