Aloha from Kailua Kona on the Big Island of Hawaii
With recent headlines (last week) stating that Hawaii Foreclsoures are up over 174%, it has drawn a lot of attention to the great deals going on. Even better, are the short sales . I have seen the exact same home in a subdivision sell for $60,000 less than an REO. Its simple the banks dont want them back and are willing to make a better deal.
I will even give you a little report card here on banks that are willing to cooperate with Realtors
Homecomings Bank : A +
Indymac Federal Bank : B+
Carrington Bank: B
US Bank : B-
Chase Manhattan: D
Countrywide Bank: F-
If you start at the top of my list, Homecomings Bank is so proactive, they have actually sat down and talked about listing prices, will call you after a few weeks and talk to you about activity, and even lowering the price if needed. Then once I had an offer in - they gave me an approval the SAME DAY !
That takes me to the bottom of the list - Countrywide, you talk about being the least proactive, the most red tape, the constant switching of loss mitigators, the biggest nightmare - here is one example (and I have 5 more like it) . We put an offer in back on Sept 10, 2008, they were reviewing the offer and had given a verbal of what they would accept, and how much would be allowed to the second loan, they forgot to tell the foreclosure dept and sold it at Auction, we were able to get it rescinded, back into escrow, they have ordered probably 10 BPOs, 3 full blown appraisals, have escelated this up to the - HRD Office of the President VIP - I have an email stating that the investors oked the deal, and it just needed Countywide upper managements ok - that was on December 23, 2008, here we are February 16 2009 - and still no answer???
OK, Lets get back on track here. The reason I started this article was to bring you bargain hunters some great news - a new feature offered by the Hawaii MLS, they now allow you to search for, REOs, Foreclosures, and short sales, by check mark fields rather than having to go through and read every one - one by one. Its a great new feature - long overdue.
You can get put into the MLS system by your favorite Realtor (hopefully thats me) or if your licensed you can sign up for the service yourself. Its FREE through your favorite Realtor or about $60.00 a month to subscribe as an agent.
Aloha and have a great day
Lance Owens
(808) 936-8383
www.KonaHomeTeam.com
Lance@KonaHomeTeam.com
Monday, February 16, 2009
Hawaii Foreclosures and Real Estate
With the headlines screaming out last week how much Hawaii's Foreclosures have sky rocketed, not once do they mention anything about Act 137, they quote the usual economic woes, unemployment, tourism, pay cuts, and so on. but they fail to ask the question about what happens when you take a Realtor, who has pledged themselves to protect and promote the interests of their client. . You take that Realtor, You tie him up in the corner - because he is not allowed to help you in short sale, you duct tape his mouth, because he is not allowed to talk to the bank and assist you. You call up your insurance man to come over and help you - your probably saying WHAT - but that's how crazy this law is! An Insurance agent is exempt from this law, attorneys are exempt (of course they drafted it) other lenders are exempt. Why not Realtors? The answer is - there is no good reason - just take a look at that magical number - 174% - increase? Tourism didn't drop 174%, unemployment didn't go up 174%? But Realtors were 100% restricted from assisting their client.
Short sales are a challenge for agents under the best of circumstances. They take much more time and often have their commissions reduced by the lenders as a condition of approving the transaction. I honestly don't know of any Realtor that would choose doing a short sale over a regular transaction.
But often times, our previous clients will come back to us, asking for our help to sell their home. I cant tell you how many times clients have broken down in tears at my desk, men and women, and often it brings tears to my eyes. These are hard working honest people, that have spent their entire adult lives protecting their credit and there just caught up the current economic woes, many of them didn't listen when we told them not to take those crazy loans - ARMs - I used to look them in the eye and question them - if you cant afford that higher payment now - what makes you think you can afford it 2 years ? Nobody ever had a good answer. What ever the reason - they need a professional Realtor to assist them in the sale of there home. Now I have to sit there and tell them I cant help them - do you know what that sounds like - sounds like I am running for the hills, I didn't have a problem helping them when it was easy, but now that is a little (lot) more challenging - I am not there for them. How crazy is that? You direct them to a DPC (Distressed Property Consultant)? These people aren't sworn to any oath? No code of ethics? No training required? No licensing? But its ok for them to call your clients bank? Don't get me wrong here - I have found a few that are good - some are Realtors, ex mortgage brokers, and honest people. but for the most part these are a bunch of people that stay up watching too many late night infomercials.
The Moral to the story is - Just take a look at the numbers yourself - those 3 numbers speak a thousand words - they are like a painting on the wall - 174 -
I rest my case Hawaii - We need to get this Law redrafted, and make it work for the people it was intended to protect, and stop all these foreclosures.
Let me tell you a little flip side to the Short Sale vs Foreclosure's:
Fannie Mae recently established a 2-year elapsed time period for reestablishing credit for homeowners who sell their homes through a short sale. Two years may seem like a long time to wait before being able to get a new loan, but compare this to what happens if the homeowner goes through the foreclosure process. According to the Fannie Mae guidelines, effective May 31, 2008, a homeowner who has filed a foreclosure will be "ineligible" for a loan for five years - that's up a year from what it used to be!
Again..this is a crucial point. Someone goes through foreclosure...no Fannie Mae backed mortgage for FIVE YEARS...in all reality that means that they will be renters for at least 5 years. To put his into perspective if someone has a bankruptcy they can't buy for 4-7 years. This should tell you how much Fannie Mae prefers homeowners short selling over foreclosure. Hawaii LLegislators have effectively taken you off the market for the next 5 years by limiting your ability to perform a short sale.
Homeowners need to unite and call their legislators - demand a change in the law !
Alright - I have gone on long enough about this
Its time to head out to the beach and enjoy life some.
Aloha, and have a great day
Lance Owens (RS)
(808) 936-8383
Lance@KonaHomeTeam.com
www.KonaHomeTeam.com
Aloha Kona Realty Inc.
78-6740 Alii Drive
Short sales are a challenge for agents under the best of circumstances. They take much more time and often have their commissions reduced by the lenders as a condition of approving the transaction. I honestly don't know of any Realtor that would choose doing a short sale over a regular transaction.
But often times, our previous clients will come back to us, asking for our help to sell their home. I cant tell you how many times clients have broken down in tears at my desk, men and women, and often it brings tears to my eyes. These are hard working honest people, that have spent their entire adult lives protecting their credit and there just caught up the current economic woes, many of them didn't listen when we told them not to take those crazy loans - ARMs - I used to look them in the eye and question them - if you cant afford that higher payment now - what makes you think you can afford it 2 years ? Nobody ever had a good answer. What ever the reason - they need a professional Realtor to assist them in the sale of there home. Now I have to sit there and tell them I cant help them - do you know what that sounds like - sounds like I am running for the hills, I didn't have a problem helping them when it was easy, but now that is a little (lot) more challenging - I am not there for them. How crazy is that? You direct them to a DPC (Distressed Property Consultant)? These people aren't sworn to any oath? No code of ethics? No training required? No licensing? But its ok for them to call your clients bank? Don't get me wrong here - I have found a few that are good - some are Realtors, ex mortgage brokers, and honest people. but for the most part these are a bunch of people that stay up watching too many late night infomercials.
The Moral to the story is - Just take a look at the numbers yourself - those 3 numbers speak a thousand words - they are like a painting on the wall - 174 -
I rest my case Hawaii - We need to get this Law redrafted, and make it work for the people it was intended to protect, and stop all these foreclosures.
Let me tell you a little flip side to the Short Sale vs Foreclosure's:
Fannie Mae recently established a 2-year elapsed time period for reestablishing credit for homeowners who sell their homes through a short sale. Two years may seem like a long time to wait before being able to get a new loan, but compare this to what happens if the homeowner goes through the foreclosure process. According to the Fannie Mae guidelines, effective May 31, 2008, a homeowner who has filed a foreclosure will be "ineligible" for a loan for five years - that's up a year from what it used to be!
Again..this is a crucial point. Someone goes through foreclosure...no Fannie Mae backed mortgage for FIVE YEARS...in all reality that means that they will be renters for at least 5 years. To put his into perspective if someone has a bankruptcy they can't buy for 4-7 years. This should tell you how much Fannie Mae prefers homeowners short selling over foreclosure. Hawaii LLegislators have effectively taken you off the market for the next 5 years by limiting your ability to perform a short sale.
Homeowners need to unite and call their legislators - demand a change in the law !
Alright - I have gone on long enough about this
Its time to head out to the beach and enjoy life some.
Aloha, and have a great day
Lance Owens (RS)
(808) 936-8383
Lance@KonaHomeTeam.com
www.KonaHomeTeam.com
Aloha Kona Realty Inc.
78-6740 Alii Drive
Thursday, February 12, 2009
Hawaii Foreclsoures, short sales, and REO (bank owned) properties for sale
Finally and easy way to research foreclosures, short sales, and REO (bank owned properties) on the Big Island of Hawaii. In the beginning I tried using RealtyTrac, and Yahoo real estate, but I found their numbers were so so far off track, and outdated, I couldn't even use them. The scary thing was that whenever you saw a report on TV, they quoted one of these sources! My next attempt at keeping up on foreclosures and short sales, was to manually go through every listing - one by one - and write them all down, very time consuming! I mean I am supposed to be out there selling properties - right? As the active listings grew to over 1,000 just here in Kona - it became unmanageable.
Those days are gone now - after years of asking our MLS to add these as - check offs - on our search engine - THEY DID IT!.
We now have search buttons that include - Foreclosure - Short Sale - REO - . The scary thing as that they put these buttons under a drop down menu that is labeled - Restrictions on Commissions-. Why would you have to do a search for a foreclosure, short sale, or REO under - restrictions on commissions - I know that sometimes they are limited, but it doesn't make sense. I mean back when Help-U-Sell or Assist To Sell were actually selling homes, I wasn't required to look up their active listings under that tab - just a little food for thought.
MLS Rules require that you have to register to view these - I have a link to my registration page below, don't worry it doesn't cost anything, (at least for you ) and it does not send out any spam. The only thing I ask is that when you are ready to to make a purchase - please give me a chance to represent you in the transaction.
http://www.konahometeam.com/bin/web/real_estate/AR153261/EXTRA_FORM1/KAILUA+KONA/1234379996.html
Thank You Very Much
Aloha, and have a great day
Lance Owens (RS)
(808) 936-8383
Lance@KonaHomeTeam.com
www.KonaHomeTeam.com
Aloha Kona Realty Inc.
78-6740 Alii Drive
Those days are gone now - after years of asking our MLS to add these as - check offs - on our search engine - THEY DID IT!.
We now have search buttons that include - Foreclosure - Short Sale - REO - . The scary thing as that they put these buttons under a drop down menu that is labeled - Restrictions on Commissions-. Why would you have to do a search for a foreclosure, short sale, or REO under - restrictions on commissions - I know that sometimes they are limited, but it doesn't make sense. I mean back when Help-U-Sell or Assist To Sell were actually selling homes, I wasn't required to look up their active listings under that tab - just a little food for thought.
MLS Rules require that you have to register to view these - I have a link to my registration page below, don't worry it doesn't cost anything, (at least for you ) and it does not send out any spam. The only thing I ask is that when you are ready to to make a purchase - please give me a chance to represent you in the transaction.
http://www.konahometeam.com/bin/web/real_estate/AR153261/EXTRA_FORM1/KAILUA+KONA/1234379996.html
Thank You Very Much
Aloha, and have a great day
Lance Owens (RS)
(808) 936-8383
Lance@KonaHomeTeam.com
www.KonaHomeTeam.com
Aloha Kona Realty Inc.
78-6740 Alii Drive
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