- Jul
- 28
Maui Foreclosure Sales
According to Realty Trac, 31% of all sales in the first quarter nationally were from Foreclosures. Read more.
The good news for Maui is that we are well below the National Average. In the first quarter, there were 87 REO sales out of a total of 509, which is equal to 17%. In the second quarter, there were 96 out total of 697 or 14%.
We suspect both the number and percentage of sales from REO’s to jump dramatically on Maui over the next 12 months.
This may be bad news for Sellers, but it is good news for those who are looking to buy. Please let us know if you would like to take advantage of the Buyer’s market.
When you add super low interest rates to the equation, it makes it an ideal time to purchase Maui real estate.
Have a wonderful week!
Mahalo Nui Loa,
The Smith Team
P.S. We have created a Facebook Fan Page for “Maui Real Estate – The Smith Team”. We would love any comments or suggestions on how to improve either our Newsletter or our new Facebook page.
Posted in Blog | No Comments »
Read our Recent Newsletter.
Join Our Mailing List and receive your FREE Maui Real Estate Guide now!
What the Mortgagor Needs to Know
As a mortgagor facing possible foreclosure you are probably feeling a lot of pressure. The stress of losing a home through foreclosure is also usually compounded by a variety of other life stresses and therefore can be an extremely difficult time in your life. Indeed, it’s important to understand that although you may be looking at foreclosure, you have some rights.
First of all, you have until 3 days before the sale to prevent default by paying the debt and other costs associated with foreclosure. Hawaii foreclosure law attempts to protect the borrower by ensuring that you receive ample notice about an impending foreclosure. Even when a power of sale clause exists, the bank must give you what constitutes a minimum of 4 weeks notice before they can attempt to auction your property.
More importantly, when your lender has provided you with a notice of intent to foreclose, you are free to sell your property on your own. In many cases of foreclosure, the mortgagor often gets less than the value of the property. By selling your property before foreclosure, you are more likely to get a fair price.
What the Foreclosure Home Buyer Needs to Know
Foreclosure home buyers need to understand that the process is fraught with loopholes and these sales are rarely straightforward. Nevertheless, when you purchase a foreclosed property, you often save a great deal of money.
Still, home buyers who are interested in foreclosure properties must often accept a property without having seen it and you must also accept that other parties are going to be interested in bidding on the property. Non-judicial foreclosures are usually more straightforward for home buyers as with judicial foreclosures bidding doesn’t stop until a court confirms sale. This means you may win the auction and still lose the property in the end.
The timeline for foreclosure sales is usually around 60 to 90 days but depending on the property and the legal matters involved a foreclosure sale can take up to a year to finalize. Legal complications with foreclosure sales are simply a part of the process and you must be prepared and patient when you’re shopping for foreclosure properties.
Nevertheless, foreclosure properties are fairly common throughout Maui because of the current economic climate and you may find a great deal on a beautiful property if you follow the foreclosure route.
Posted in Uncategorized, Maui Real Estate, Hawaii Real Estate, Maui Foreclosures, Hawaii Foreclosures | No Comments »
Read our Recent Newsletter.
Join Our Mailing List and receive your FREE Maui Real Estate Guide now!
According to noted economist, Paul Brewbaker, “If Maui real estate prices haven’t already hit bottom, they’re not going to get much lower.”
He further stated that it wasn’t worth looking for the last 5 dollars, and if you want a bargain, the time to act is now.
In addition, even if prices do drop further, the likelihood is that interest rates will more than offset any possible savings for those who are financing their purchases.
The uptick in housing prices in California, fortells an uptick here, as Maui closely follows the trends in California; although normally with a lag time. Read the full article.
Next week, we will put up a link to the video, so you can see for yourself the data which Mr. Brewbaker is using for his forecast.
Have a wonderful week!
Mahalo Nui Loa,
The Smith Team
P.S. Ho’onanea at Lahaina is a brand new D.R. Horton project with terrific pre-construction pricing. Here are three representative Listings.
Posted in Blog, Maui Real Estate, Hawaii Real Estate, Hawaii Tourism, Maui Foreclosures, Hawaii Foreclosures | No Comments »
Read our Recent Newsletter.
Join Our Mailing List and receive your FREE Maui Real Estate Guide now!
Pre-foreclosure
The pre-foreclosure period is essentially the time when the lender notifies the home owner that they are in default of their loan and that foreclosure proceedings will begin. As already mentioned, in a non-judicial foreclosure, the lender must provide a notice of intent to foreclose.
Alternatively, with a judicial foreclosure, the lender must ask the court to rule that the borrower is in default. The appropriate documents are filed and the lender provides the borrower with notice of the court filing. Otherwise, if the lender is unable to establish contact with the borrower they may publish a notice of the court filings in a newspaper circulated in Maui.
From the time this notice is sent or published, the borrower has 20 days to respond. After 20 days they are automatically found to be in default and the lender is given the power to proceed with the sale of the property. If the borrower responds promptly to the notice, the court will hear both parties and determine if the borrower is in default. Once default has been established, the borrower may appeal the decision within 30 days.
Notice of Sale and Auction
In non-judicial foreclosures, the lender follows the agreed upon guidelines or the guidelines regarding power of sale as outlined above. If the borrower is unable to repay the debt, the property goes to auction and is sold to the highest bidder. From time to time the auctions are rescheduled at the convenience of the lender but this requires that notices be sent and published again.
In judicial foreclosures, the court appoints a commissioner to sell the property, also at an auction. A notice of sale is published by the commissioner in a local Maui newspaper indicating the date and time of the auction and any associated open houses. Anybody is free to bid on the property but the winning bidder must pay 10 per cent of the bid by cash or cashier’s check. Still, this does not ensure that the highest bidder will receive the property as continued bidding is allowed at a confirmation hearing. In fact, the sale is not final until confirmed by the court as a fair price and anybody may reopen the bidding before this point by offering 5 per cent more than the auction price.
Finally, while some states allow a property owner to redeem their property by paying off the outstanding debt, Hawaii does not offer any rights of redemption to borrowers after the court has confirmed the sale.
Posted in Maui Real Estate, Hawaii Real Estate, Maui Foreclosures, Hawaii Foreclosures | No Comments »
Read our Recent Newsletter.
Join Our Mailing List and receive your FREE Maui Real Estate Guide now!
Overview
The foreclosure process in Maui and Hawaii is not distinct from other states but there are some challenges that buyers face when they attempt to purchase this type of property. Understanding the Maui foreclosure process will not only help you to find an ideal property, it will also help you to prepare for the unique demands that are associated with foreclosures. Whether you are a mortgagor or a home buyer, it is beneficial to understand the stages of foreclosure and your rights therein. In addition, it’s important to understand that the current homeowner also has certain rights, and taking some time to learn about the process will only make it easier to manipulate.
Types of Foreclosure in Maui
The two main types of foreclosure in Hawaii are judicial foreclosure and non-judicial foreclosure. While both methods are commonly used, they are slightly different.
Judicial Foreclosure
Judicial foreclosure involves a lawsuit wherein the lender asks for a court order to foreclose. This type of foreclosure is used whenever there is no power of sale in the mortgage or deed of trust. When the court orders a foreclosure, the lender auctions the property to the highest bidder.
Non-judicial Foreclosure
With a non-judicial foreclosure, a power of sale clause is written into the mortgage or deed of trust. Power of sale clauses are essentially an agreement where the borrower has authorized the lender in advance to sell the property and pay off the remaining balance on a loan in default. Whenever a power of sale clause exists, the lender has the power to sell the property. Either the lender or their representative, the trustee, must follow specific power of sale foreclosure guidelines.
What are the Power of Sale Foreclosure Guidelines
As a home owner, you would probably be reluctant to agree to power of sale if you thought the bank could up and sell your house whenever they felt like it. In fact, where there is a power of sale agreement, the lender must follow specific guidelines. Sometimes the power of sale agreement includes the details of sale including the time, place and terms under which a sale can take place. However, when these details have not been provided, the following guidelines hold true.
First, the lender must publish a notice of intent to foreclose once weekly for a minimum of three consecutive weeks. The last announcement of notice of intent to foreclose must be published at least 14 days before the day of sale and it must be published in a newspaper with circulation in Maui.
This notice is copied and delivered to all interested parties including the borrower, prior and junior creditors, and the state director of taxation. Also, this notice must be posted on the property at least 21 days before the sale of the property.
This notice of intent of foreclosure must also include specific details. The date, time and place of the sale must be written in the notice along with the dates and times of two open houses for the relevant property. If there are no planned open houses, the notice must reflect this fact. In addition, the notice includes the unpaid balance on the mortgage, a description of the property including the address, the name of the borrower, the name of the lender, and the names of any prior or junior creditors with a lien on the property. Finally, the notice of intent must also include the name, address, and telephone number of the State representative conducting the sale as well as the terms and conditions of the sale.
The power of sale foreclosure guidelines also ensure that the borrower may avoid default and stop the sale of the property by paying the debt and associated costs (including lawyer fees) right up to 3 days before the sale.
Photo Credit: respres
Posted in Maui Real Estate, Hawaii Real Estate, Maui Foreclosures, Hawaii Foreclosures | No Comments »
Read our Recent Newsletter.
Join Our Mailing List and receive your FREE Maui Real Estate Guide now!
