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Aloha,
If you happen to looking for a Maui Short Sale Property, you will see more short sales in this current market. Even in the condo market you will see Kihei Maui condo short sales taking place. What does this mean for the buyer? A short sale is where a property owner is trying to sell a property and they owe more than what the property is currently worth. So they are asking the lender to accept less than they owe on the mortgage.
The biggest upside for buyers is getting a home from a seller, who is motivated to sell at an reduced Maui market price, than current listed prices for a Maui Condo or Maui Short sale for homes.
However, it’s more time consuming and trying to negotiate a purchase and complete a sale with lenders. Also, till you have a sign contract with the seller and lender you can be bumped from your position with the offer, making this challenging in dealing with lenders. Maui short sales can take up to 30 to 90 days to receive a response from a lender on an offer. Short sales can take up to three to six months to close once they have been accepted.
There can also be fees for the Buyer that usually the Seller would be paying. Some times you will run into Short Sales where the list price has not been approved by the Lender. With all offers there are two Addendums that are provide with an offer. Distressed Addendum and Short sale addendum.
- Short Sale Addendum: It would be advisable to review both these addendums prior to entering any contract and consider legal advice. The opening of escrow will not occur until the lender approves the Purchase Agreement and all Addendums. It is also important as a Buyer to know up front what all your cost will be. As a Buyer, if you want to review Short Sale Addendum please email me and I will provide the Addendum for your review. When you do receive an acceptance letter from the lender, it may not include taxes, association dues liens and commissions. So make sure you have the lender confirm what is covered in the contract. You want to know all liens that have been filed against the property, reason being the Buyer might have to pay off these liens.
- Buyer needs to understand that until you receive a written approval of the Purchase Contract that is sign by the Lender and Seller. The Seller and Lender may continue to receive and accept offers from other Buyers.
So if you are a Buyer looking For Maui Short Sales, and need more information. Email for copies of the Buyers Short Sale Addendum and Distressed Addendum for your review. If you are looking at listing your property in Maui. Email for all addendums for your review. Also Sellers need to be advised that Realtors can not represent you as legal consultants dealing with lenders. You will need to seek legal advice from an attorney and consult with your lender.
Short Falls of Short Sales.
Short Sales today are a Hugh part of our real estate market today. On Maui, Short Sales and Bank Sales represent 16 percent of our active listings and climbing. So while you can get some fabulous deals, Buyer beware. You need to have you eyes wide open when you enter into contract with the Banks.
Here are a couple things to beware of when you in a contract to purchase your new home that is a Maui Bank Sale.
- Ask for a Preliminary Title report so can make sure the property is insurable.
- Give your self a long enough escrow time. You can be penalized for closing late.
- Ask up front what escrow fee’s if any the Lender will pay.
- Find out what AOAO common expenses are outstanding for condominiums. The lender is not going to pay these and the new Buyer is most likely going to have to pay. Each state has different laws setting limits on what the new Buyer has to pay.
- Check with your local County Land Use Dept to see if there are any outstanding fines for zoning violations
- For Title Insurance, make sure State and IRS, AOAO Association, Occupant, Lien Holders and all Title holders sign a certified notice.
- In Hawaii make sure there is an exemption signed off by the lender for Harpta Exemption form or you will be taxed 5% of sales price. This will vary state to sate.
So this is just a few things you need to be aware of going into a bank or short sale.
Happy hunting.
So if I can help you with the purchase of a Maui Short sale, or with listing and marketing of your short sale property. Let me know I would love to be of assistance to you. I have 15 years of experience in the Maui real estate market.
Sign up for Short Sale email updates at mauishortsaleonline.com
Steven Nickens R(S), GRI, ABR
The Wailea Group, LLC
3750 Wailea Alanui, Suite 5WE
Wailea, Maui, Hi 96753
Email: nickens@maui.net
Cell: 808-280-2208
