* Hawaii foreclosure, Bank Sale , Hawaii foreclosure sale , Oahu Hawaii Real Estate

Hawai'i has fared better than most states in terms of home foreclosures.

Hawai'i foreclosure rate at 1.67%,

22nd lowest in nation. Hawaii has very few mortgage delinquencies

Honolulu is NOT a distressed area, and there are NO problems with getting FHA loans in Hawaii!!!

Among the many reasons why Hawaii is a unique real estate market, and insulated from most of what happens on the Mainland is its status of high personal income.  Personal income has a direct effect on the ability to purchase real estate.  Placing number 4 in the nation is no small accomplishment.   Nationally, personal income dropped the last quarter of 2007 however Hawaii increased over that same period.Hawaii remained in the top tier for income growth rates, according to statistics released yesterday by the U.S. Bureau of Economic Analysis

Honolulu is considered 'da bes' place to live in the United States.  Just part of the reason why people who can live anywhere choose Hawaii.

As Hawaii's rents increase, the gap between rent payments and mortgage payments gets smaller.  Low mortgage interest rates have brought mortgage payments down, as this article points out, rents are going up, and are now the highest in the nation.   What is bad news for some, is good news for others.  This is great news for your investors.  There are three things that investors look for in determining when to invest in  rental property.  One is the rent base.  Hawaii has the highest in the nation, check that one off.  The second criteria investors want is low interest rates. Check.  Get in to the game before rates start back up.  The third requirement is sufficient inventory so there is choice.  Check - Hawaii now has ample inventory. 

Part of the reason for the strength of the Hawaii real estate market is the strength and variety of the Hawaiian economy.  Tourism has long been the engine for Hawaii.  It looks like that engine is picking up some steam.  This, along with the big increase in military spending is bringing a little extra power to the economy at just the right time.   This means that because of our economic uniqueness Hawaii behaves differently from the rest of the US.   As there is more talk about 'recession' on the Mainland.  One of the elements of our unique economy is the very large amount of military spending that goes on here.  The military recently awarded contracts that could total $158 million for a new communications facility in Wahiawa, drydock work at Pearl Harbor Naval Shipyard and Navy construction. 

Right now, buyer and sellers need to pay close attention to their specific neighborhood. 

Prices and sales volume differ widely from one area to another across Oahu, so it's difficult to generalize about Hawaii real estate market

Hawaii has never been a very active foreclosure state because demand is too high. 

If a home does go into foreclosure, you are not going to get a bargain even if you are able to buy it.

LOOKING FOR A "DEAL"  CHECK THIS

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Local News Posted on: Sunday, March 30, 2008

Buying foreclosures can pose high risk

While the number of foreclosures in Hawaii is low compared to the rest of the nation, the default rate is still higher than it's been in years — tempting some buyers with the lure of "easy money."

But still, buying one of these foreclosures is not an automatic money maker. The secret is to know what is happening to the market locally and what obstacles you may face when dealing in foreclosed properties.

First, the reason foreclosures are rising, and will likely continue to rise in 2008, is because the record number of adjustable-rate subprime loans initiated in 2003 with five-year terms. Borrowers who barely qualified for their loans when rates were at their historic lows, are finding it difficult to make their monthly payments as variable rates kick in. Worse, they may be unable to refinance if they also live in a neighborhood where prices have dropped or are unqualified because of tightening credit requirements. In that case, they have even fewer options because now they may not even be able to sell the home to pay off the mortgage

On the Mainland, especially in California and Nevada where both states documented foreclosure rates that were more than twice the national average, most of the homes slipping into default are in areas where prices have also plunged. Stable prices in Hawaii is one reason why filings here remain low and investment opportunities for buyers are few.

"Hawaii is really very different from the rest of the country," says Bill Chee, CEO at Prudential Locations LLC. "We're ranked 43 of 50 in the country for having one of the lowest foreclosure rates in the nation."

The stable Hawaii market enables in-over-their-head homeowners to put their property on the market and sell it before the bank forecloses on them — meaning fewer properties ever make it to the auction block.

"It's a nominal opportunity here," says Chee. "The foreclosure supply is very limited. As a result, the vast majority of foreclosed property is bid up to market value — occasionally higher. Good deals are hard to come by at foreclosure auctions."

If you still find the allure of buying a foreclosure irresistible, you should know some of the troublesome areas surrounding this type of purchase.

Risks are greater when buying a foreclosure. At the top of the list is the limited amount of information typically available on a property in foreclosure. Because it's not listed by a Realtor, it's difficult to get access to the property.

"There are no open houses, no available photographs, and very limited information about the condition of the property," warns Chee. "Obtaining information from the current property owners is unlikely as homeowners faced with foreclosure are generally uncooperative and often hostile."

Property condition is generally unknown — often dilapidated. If the owner is having trouble making the mortgage payment, chances are there is no money left to fix a leaky roof, pay property taxes, or for any regular maintenance.

Additionally, because the owner is overwhelmed financially, the property may be encumbered with a second mortgage or other liens. Remember, when you're crunching numbers to test the viability of the purchase as an investment, to find out if the owner has taken out equity or has any other liens on the property. This along with unforeseen maintenance items could significantly eat up your assumed profits fast if you're not careful.

"You buy the property 'as is' without any warranties," explains Chee. "You need to decide if you can deal with those risks."

Finally, potential problems can haunt you even after you take ownership.

"As the new owner of a foreclosed property, it is your responsibility to evict the previous owners," adds Chee. "Often this involves throwing a financially distressed family out on the streets. The eviction process can take up to six months and you will have to make your mortgage payments while you evict the previous owners."

Foreclosures are not an instant, safe or trouble-free way to get rich quick. As with any real estate transaction, do your homework and get educated.

Whether you are thinking of buying, selling or financing real estate,
I'd love to hear from you!

Elena Roud 

Your Personal  Oahu Real Estate Consultant for Life!

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