14 Mar Foreclosures come to Poipu
Poipu and the condominium projects here have been fairly resistant to foreclosures until now. We have seen foreclosures in Nihi Kai, Kuhio Shores, Waikomo Streams and Prince Kuhio. While there are “deals to be had” in this Buyer’s market, there are some advantages and disadvantages to buying a foreclosure.
There are 4 different stages of the foreclosure process a buyer needs to know:
In default: the owner has missed at least 3 payments and the bank has sent a default letter.
Short Sale or Pre Foreclosure: Seller is trying to sell the property for less than is owed the bank
Auction: bank has foreclosed and the property is set to be auctioned off on the court house steps.
REO: the bank now owns the property and is trying to sell it themselves.
A Buyer needs to aware on the short sale as the bank needs to agree with the price of an offer, even if it is the “full price” of the listing, and this can take up to 6 months. With an auction, there usually no inspections or any guarantees offered with the property. Most of these properties may not even have appliances. They may have been trashed by the current owner.
Once the bank owns the property (REO) they will want to unload it as fast as possible as they are the ones paying the unit expenses. There is time to inspect these units and even though the bank may not agree to fix anything at all, at least the new Buyer knows what he is in for.
If anyone is interested in knowing what is available in the foreclosure market in Poipu, just email me at email@example.com and I will get you the most current availability.