During the last recession, there were many foreclosures and owners who were “upside down” with their mortgages. This created opportunity for the people who purchased these foreclosed properties. At Hawaii Homes International we specialize in foreclosure properties and short sales (pre-foreclosure) properties on Oahu and can assist you in buying these foreclosures on the island of Oahu, Hawaii.
There are a few ways to find foreclosures on the island of Oahu, Hawaii. One way is to track judicial and non-judicial foreclosures. A judicial foreclosure involves a lawsuit where the creditor (bank) obtains the court’s permission to foreclosure on the home. A non-judicial foreclosure is one that exercises the power of sale that every conventional mortgage has in it and allows the bank to foreclose without going to court. To pursue purchasing these types of foreclosures has substantial risk associated with it. In most cases, you do not get to view the property and a non-refundable deposit is required upfront at the auction. You are also typically required to close quickly, usually within 30 days. There is no home inspections or financing contingency allowed, as well as any other contingencies. You could also run the risk of inheriting a tenant that occupies the property and may need to go through the trouble of evicting that tenant if need be and there are even some circumstances where you are not allowed to evict the tenant right away. For these reasons, buying a foreclosure at a judicial or non-judicial auction has substantial risk associated with it and because of these risks, we would not be able to assist you with these types of foreclosures. However, we can assist you with different types of foreclosures that are lower risk.
The other way to purchase foreclosures or pre-foreclosures (short sales) is directly through the bank or seller. You do not need to call the bank directly but instead, work with a good real estate agent that knows how to find bank owned and short sales (pre-foreclosures). The banks that take back the property at foreclosure typically hire a local real estate broker to list the property. These banks have no emotional connection and therefore are more motivated to sell than a normal seller. In some cases, they do not fix the property up and get it ready for sale as-is, which could create a potential opportunity for a discounted price since the property will not show as well. Our agents at Hawaii Homes International can help you with these types of foreclosure properties. See the list located below for a sample of properties available on the island of Oahu, Hawaii.
In regards to a pre-foreclosure, sellers usually elect to sell the property through a local real estate agent prior to losing the home through foreclosure. These pre-foreclosures are also known as short sales. A seller that lists their home as a short sale (pre-foreclosure) is considered “upside down” on his mortgage, meaning the seller owes more to the bank than the home is worth. In these situations, the seller has recently stopped paying or hasn’t paid the bank in months or even years, which puts the seller even further “upside down” on his mortgage. These sellers are highly motivated to sell. Although these sellers are highly motivated to sell, they need to get permission from the bank to sell it “short”, which means selling it for less than their amount owed on their loan. Just because the seller is upside down on his mortgage and has stopped paying his mortgage, it doesn’t guarantee the bank will allow a short sale. There are lots of reasons why a lender or bank won’t allow a short sale, but the situations are typically complex and there are a number of factors for the bank or lender to consider in their decision. As a buyer interested in buying a pre-foreclosure or a short sale, keep in mind that it does take time for bank approval of the sale and there have been instances when a pending property actually gets auctioned at judicial or non-judicial foreclosure sale instead. It is important for the listing agent to keep in close contact with the bank to help prevent this. Our agents at Hawaii Homes International can help you with these types of pre-foreclosure/short sale properties as well. See the list below for a sample of properties available on the island of Oahu, Hawaii. For detailed daily updates on foreclosed and pre-foreclosed homes for sale subscribed to our website.
This is a HomeSteps property. This property is eligible under the Freddie Mac First look Initiative through 10/11/2019. HomeSteps First look program, no investor offers...