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December, 2008 - Newsletter for the Maui Market
Aloha and Merry Christmas, Happy Hanukkah and a Happy New Year. Here is your eNewsletter for the Maui Market from Jim Foster
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Make sure you check out the Useful Internet Sites and Real Estate Tips at the end of this newsletter which includes some valuable information on Short Sales, Loan Modification and Foreclosure processes in Hawaii.
Don't forget! We provide a free Automatic E-mail Notification Service that goes out to recipients whenever a new listing becomes available for a particular condominium complex. Each of these notifications includes a link to view the details of the brand new listing in the MLS. We DO NOT SHARE YOUR EMAIL ADDRESS or your contact information with anyone. To subscribe to our Automatic E-mail Notification Service, please send Won an email at Won@JamesBFoster.com with your first and last name, your email address, and the condominium property you wish to be notified of.
Another service we provide is the Condominium Real Estate Market eUpdates which is sent out periodically to inform potential buyers and owners of specific condominium properties about the real estate market activities at those properties. This service is provided exclusively for those who own a condominium property or who are interested in a particular condominium complex on West Maui. If you would like to subscribe to the Condominium Real Estate Market eUpdates for a particular complex or to get a list of all condominium properties that are included in the eUpdates, email Won at Won@JamesBFoster.com.
Maui Real Estate – For Sales Condominium Listings on 12-6-08 total 746; Pending Sales in the West Maui are as follows: 15 at Honua Kai, 3 at Opukea and 3 at West Maui Breakers, all new developments. Honua Kai phase one is suppose to start closing around January 15, 2009, 7 Office Condominiums in the Lahaina Business Park and a variety of other properties for a total of 59 and total sales for the year (1-1-08 to 12-6-08) of condominiums in West Maui are 188 or a monthly average of 15.
Buyers are continuing to look and some understand it is an excellent time to buy and hold because prices have declined. Buyers should make sure they are preapproved and also consider asking the Sellers if they would consider an Agreement of Sale. The growing inventory has slowed and currently there are 746 condos in the MLS for the West Maui area.
For Sellers, the critical thing is pricing the property appropriately. The smart and aggressive Sellers are making sure their property shows well, having an inspector write a report on condition and having their property appraised as a basis of comparison. This definitely provides a competitive advantage for Sellers who are truly motivated to sell their property.
To view the 2007 & 2008 Year End Statistics go to http://www.jamesbfoster.com/condosales.php and click on Maui MLS Statistics 2007 & 2008.
The West Maui real estate market continues to favor Buyers with Sellers willing to negotiate their prices. The current inventory of West Maui condominiums for sale is now at 729 (at 12-1-08) and on the same month in 2006 it was 408. Properties are requiring more time to sell such as five to six months and Buyers have a much larger inventory of properties for sale to choose from. If you’re curious about current trends in Maui real estate and where the market is headed, the answer is - it depends on Location - it depends on if it is condominium or single-family residential - it depends on whether you look at volume, average or median prices. In the current Maui real estate market, the for sale inventory continues to increase and prices are typically flat or have decreased.
Condominiums for Sale - In the West Maui real estate market, at the beginning of January, 2007 - 410 condominiums were listed for sale with the total value of $372,238,031.00; February, 2007 - 431 condominiums with the total value of $393,681,669.00; March, 2007 - 458 condos with the total value of $420,941,268.00; April, 2007 - 479 condos with the total value of $429,708,159.00; May, 2007 - 472 condos with the total value of $424,095,260.00; June, 2007 - 455 condos with the total value of $415,187,129.00; July, 2007 - 475 condos with the total value of $432,797,008.00; August, 2007 - 469 condos with the total value of $420,479,301.00; September, 2007 - 474 condos with the total value of $430,914,408.00; October, 2007 - 471 condos with the total value of $423,631,002.00; November, 2007 - 466 condos with the total value of $416,008,907.00; December, 2007 - 485 condos with the total value of $421,080,117.00; January, 2008 there were 511 condos with the total value of $445,656,447.00; February, 2008 there were 559 condos with the total value of $500,946,603.00; March, 2008 there were 595 condos with the total value of $529,779,322.00; April, 2008 there were 647 condos with the total value of $606,635,687.00; May, 2008 there were 634 condos with the total value of $583,391,821.00; June, 2008 there were 644 condos with the total value of $590,736,279.00; July, 2008 there were 680 condos with the total value of $662,919,268.00; August, 2008 there were 703 condos with the total value of $693,069,348.00; September, 2008 there were 693 condos with the total value of $654,411,079.00; October, 2008 there were 673 condos with the total value of $620,032,454.00; November, 2008 there were 715 condos with the total value of $652,379,032.00; and at the beginning of December, 2008 there are 729 condominiums for sale in the West Maui area with the total value of $660,335,998.00. The condominium for sale inventory since July, 2005 has been as low as 165 and is up to 729 for December 1, 2008. The “for sale” inventory on West Maui continues to increase.
Condominium Sales in 2006 - The total condominium sales for West Maui during the month of January, 2006 there were 42 sales and the total value was $28,574,643.00; for February, 2006, there were 48 sales with total value of $32,995,078.00; for March, 2006 there were 40 sales with total value of $32,199,584.00; for April, 2006 there were 43 sales with total value of $41,898,525.00; for May, 2006 there were 51 sales with total value of $39,644,886.00; for June, 2006 there were 40 sales with total value of $32,533,500.00; for July, 2006 there were 30 sales with total value of $26,212,000.00; for August, 2006 there were 28 sales with total value of $31,885,500.00; for September, 2006 there were 30 sales with total value of $24,770,000.00; for October, 2006 there were 29 sales with total value of $23,359,299.00; for November, 2006 there were 22 sales with total value of $13,414,600.00; and for December, 2006 there were 30 sales with total value of $23,169,999.00. For 2006, the monthly average sales were 36 sales per month with the average sales value of $29,221,468.00 per month.
Condominium Sales in 2007 - The total condominium sales for West Maui during the month of January, 2007 there were 37 sales and the total value was $33,091,000.00; for February, 2007 there were 26 sales with total value of $16,330,000.00; for March, 2007 there were 32 sales with total value of $24,121,000.00; for April, 2007 there were 27 sales with total value of $16,766,000.00; for May, 2007 there were 28 sales with total value of $30,774,929.00; for June, 2007 there were 28 sales with total value of $18,917,000.00; for July, 2007 there were 21 sales with total value of $13,314,200.00; for August, 2007 there were 32 sales with total value of $33,258,999.00; for September, 2007 there were 23 sales with total value of $24,701,900.00; for October, 2007 there were 42 sales with total value of $28,159,900.00, however this included a packaged sale of 19 units at Aina Nalu in Lahaina; for November, 2007 there were 15 sales with total value of $15,930,000.00; and for December, 2007 there were 13 sales with total value of $13,335,500.00. For 2007, the Month of December saw the lowest number of sales in 2007. The monthly average sales were 27 sales per month with the average sales value of $22,391,702.33 per month.
Condominium Sales in 2008 - The total condominium sales for West Maui during the month of January, 2008 there were 20 sales and the total value was $16,186,800.00; for February, 2008 there were 20 sales and the total value was $14,414,584.00; for March, 2008 there were 26 sales and the total value was $20,079,000.00; for April 2008 there were 28 sales and the total value was $ 20,488,500.00; for May 2008 there were 22 sales and the total value was $20,055,000; for June 2008 there were 14 sales and the total value was $11,957,000; for July 2008 there were 10 sales and the total value was $6,955,999; for August 2008 there were 13 sales and the total value was $8,055,000; for September 2008 there were 12 sales and the total value was $6,707,122; for October 2008 there were 11 sales and the total value was $6,267,500; and for November 2008 there were 10 sales and the total value was $8,444,000. The average monthly sales were 17 sales per month with the average sales value of $12,691,864.09 per month.
The total condominium sales for August, 2005 was 52; September, 2005 - 58; October, 2005 - 38; November, 2005 - 48; December, 2005 - 47; January, 2006 - 42; February, 2006 - 48; March, 2006 - 40; April, 2006 - 43; May, 2006 - 51; June, 2006 - 40; July, 2006 - 30; August, 2006 - 28; September, 2006 - 30; October, 2006 - 29; November, 2006 - 20; December, 2006 - 30; January, 2007 - 37; February, 2007 - 26; March, 2007 - 32; April, 2007 - 27; May, 2007 - 28; June, 2007 - 28; July, 2007 - 21; August, 2007 - 32; September, 2007 - 23; October, 2007 - 42; November, 2007 - 15; December, 2007 - 13; January, 2008 - 20; February, 2008 - 20; March, 2008 - 26; April, 2008 - 28; May, 2008 - 22; June, 2008 - 14; July, 2008 - 10; August, 2008 - 13; September, 2008 - 12; October, 2008 - 11; and November, 2008 was 10.
We have gone in to the Maui MLS database and pulled information for 2000 through 2008. In 2000 - 654 condominium units sold in the West Maui area for a total value of $209,064,010; in 2001 - 605 condominium units sold for a total value of $271,681,337; in 2002 - 730 condominiums sold for a total value of $240,178,915; in 2003 - 737 condominiums sold for a total value of $319,748,466; In 2004 - 700 condominiums sold for a total value of $375,033,467; in 2005 - 682 condominiums for a total value of $408,582,315; in 2006 - 435 condominiums for a total value of $351,782,614; in 2007 - 327 condominiums for a total value of $271,290,428.00. In 2008, from 1/1/08 to 11/30/08 - 187 condominium units sold in the West Maui area for a total sales value of $141,383,505.00.
For previous condo sale details, go to our web site, http://www.jamesbfoster.com/condosales.php then scroll down to your choice and click to open the ADOBE pdf. For the time period of 1/1/2008 to 10/31/2008 the average price for a home on Maui was $857,066 which is down 9% for the time period of 1/1/07 to 10/31/07 when the average price was $937,543. For the same time period the average price for a Fee Simple condo on Maui was $972,853 which is up 21% for the same time period when the average price was $806,278 according to the RAM (Realtor Assoc. of Maui) statistics. Condo sales in Wailea, Makena, Kapalua and Kaanapali are having an impact on the Fee Simple Condo average price by increasing it.
Mortgage Rates for week of December 5, 2008 - from First Hawaiian Mortgage - Rates: Houses & Condos Full docs: 5.250% 30 yr fixed 1.00 pt (5.430 APR) 5.500% 30 yr fixed .625 pts (5.648 APR) 5.875% 30 yr fixed No Points (5.968 APR) Stated Income: 6.125% 30 yr fixed 1.375 pts (6.344 APR) 5.875% 15 yr fixed 1.375 pts (6.237 APR) Interest Only: 6.875% 30 yr fixed 1.625 pts (7.118 APR) To $1M: 6.125% 30 yr fixed 1.125 pts (6.337 APR) 6.125% 30 yr fixed 1.625 points for condotels.(6.369 APR) (Points include origination fee)
Mortgage Rates for week of November 1, 2008 - from First Hawaiian Mortgage - Rates: Houses & Condos Full docs: 6.25% 30yr fixed 1.6.25 pts (6.425 APR) 6.5% 30yr fixed .625 pt (6.580 APR) 6.75% 30yr fixed No Points (6.77 APR) Stated Income: 7.735% 30yr fixed 1.0 pt (7.498 APR) 6.75% 15yr fixed 1.0 pt (6.869 APR) Interest Only: 7.25% 30yr fixed 1.0 pt (7.367 APR) 7.375% 30yr fixed 0.50 points (7.444 APR) To $1M: 7.25% 30yr fixed .50 Points (7.318 APR) for condotels 7% 30 yr fixed 1.5 points (7.163 APR) 7.250% 30 yr fixed 0.75 pt (7.342 APR) (Points include origination fee)
Mortgage Rates for week of October 1, 2008 - from First Hawaiian Mortgage - Rates: Houses & Condos Full docs: 5.875% 30yr fixed 1.75 pts (6.127 APR) 6.125% 30yr fixed 1.25 pt (6.332 APR) 6.5% 30yr fixed No Points (6.591 APR) Stated Income: 7.125% 30yr fixed 1.0 pt (7.323 APR) 6.625% 15yr fixed 1.0 pt (6.938 APR) Interest Only: 6.625% 30yr fixed 1.0 pt (6.8 APR) 7% 30yr fixed No points (7.094 APR) To $1M: 7.25% 30yr fixed No Points (7.338 APR) 6.375% 30 yr fixed 1.25 points for condotels.(6.585 APR) (Points include origination fee)
If you would like to view the most current sales statistics for Maui or West Maui Condominiums, you can go to my web site www.JamesBFoster.com and click on Condo Sales in the upper left corner of the home page or go to www.JamesBFoster.com/condosales.php.
Some recent and past news about what is going on in Maui & Hawaii
Weather - As I am writing this newsletter today, December 7, 2008, it is about 79 degrees and beautiful, sunny weather. The next ten days we are expecting stronger winds and predictions for intermittent rain next week but the weather is great and the balance of the year is expected to be on the dry side.
Honua Kai Feeding frenzy leads to lawsuit - Four local buyers who now say they were caught up in a "feeding frenzy" at Honua Kai in Kaanapali are suing to cancel their sales contracts. Their attorney is also representing an unhappy buyer at the Ho'olei condominium in Wailea, but at Honua Kai he is presenting a different legal argument - one that, he says, could have implications for many real estate contracts. The interest in Intrawest's Honua Kai condominiums in 2005 was intense. The developer limited real estate agents to three reservations each for the first phase of 242 units, which were to have opened about now. Construction continues, and the first phase is planned to open next month. The Plaintiff’s attorney said a decision last year by the Hawaii Supreme Court declared that lopsided contracts are unacceptable as a matter of public policy and that they will not be recognized as valid. The suit seeks an injunction and either punitive or treble damages. The defendants are Maui Beach Resort limited partnership, Northwest Maui Corp., Intrawest ULC and Playground Destinations Properties Inc.
Baker out at helm of Ways and Means - State Sen. Roz Baker lost the reins of the powerful Ways and Means Committee Thursday, a position she highlighted as a strong asset for her re-election this year. Instead, Baker will head the Senate's Consumer Protection Committee. Baker had campaigned this year that her 16 years of experience in the Legislature and her role as chair of Ways and Means was an advantage that a novice such as Shields could not match. She said she would be more capable than Shields of producing meaningful legislation for her constituents and for Maui County.
Bed-and-breakfast bill clears planning panel - Legislation for bed-and-breakfast operations took a step closer to passage Thursday when the council Planning Committee voted to recommend approval of the draft regulations and send them to the full Maui County Council for a decision. The B&B bill had evolved over five months, under pressure from the vacation rental industry to pass regulations as quickly as possible. Vacation rental operators without permits currently face enforcement and shutdown by the county, and the legislation will create a clearer process for permitting and regulation of bed-and-breakfasts. A key section of the bill is a cap on the number of B&Bs allowed in each district. Committee members voted Thursday to increase the total number of operations allowed on the island from 302 to 400: 48 in Hana, 100 in South Maui, 40 Upcountry, 88 in Paia-Haiku, 36 in Central Maui and 88 in West Maui.
CEO David Cole leaving Maui Land & Pineapple (ML&P) - Cole will be replaced as president and CEO by Robert Webber, the company's chief operating and financial officer, and as chairman by Warren Haruki, chief executive officer of Grove Farm on Kauai and a ML&P director. Cole will continue to serve as a ML&P director and as the company's representative on the boards of Hawaii BioEnergy and Hawaii Superferry.
The announcement came Friday in ML&P's release of its third-quarter earnings report.
The company reported a net loss of $8.7 million ($1.09 per share) for the third quarter, compared to a net loss of $155,000 (2 cents per share) for the same period in 2007.
William Kennison, Maui Division director for the International Longshore and Warehouse Union, worried that the change of ML&P leadership could lead to the company abandoning pineapple cultivation, a move considered by the company's board last month.
Council panel passes Lipoa Point resolution - Maui Land & Pineapple Co. set a firm Dec. 31 deadline for Maui County to make a formal commitment to a compromise plan to conserve thousands of acres of shoreline, watersheds and the beloved Lipoa Point and Honolua Bay. Council's Policy Committee met to act on a resolution by Council Member Jo Anne Johnson urging Mayor Charmaine Tavares' administration to enter into negotiations with ML&P. The committee unanimously passed the resolution.
County ordered to slice spending – Various County Departments will cut 16 percent to save around $55 Million. All (fiscal year 2009) general fund operating budgets were reduced by 16%. Each department's budget would remain at the amount originally appropriatedbut 16% of the funding is to be restricted from access until approved for release by the mayor and the FIT committee.
First visa-free visitor from South Korea arrives - The number of visitors expected within the next year from South Korea is approximately 80,000. Its citizens take advantage of lifted travel restrictions. Without a visa they can come over here for tourism purposes, business purposes, or come here any time whenever they feel like it. South korea joins 27 other countries in the visa waiver program. South Korean citizens can now enter the United States with an e-passport and stay for up to 90 days.
Price of Gasoline drops below $3.00 - Regular is down to around $2.85 per gallon. Hawaii gas prices tend to fall slower than they rise. A gallon of unleaded gas cost an average of $2.89 nationally about the middle of October, according to AAA. Alaska had the most expensive gas at an average $3.84 per gallon. Oil prices fell below $71 a barrel compared to $79 per barrel a week earlier. Oil cost more than $100 a barrel Sept. 30.
Isle banks riding out U.S. storm - The dominant banks in Hawaii are Bank of Hawaii, American Savings Bank, Central Pacific Bank and First Hawaiian Bank. The Hawaiian banks continue to post strong, even record, profits and have withstood the nation's mortgage meltdown. The four banks are weathering the financial storm by avoiding subprime lending, maintaining their conservative practices and keeping in mind the region's long-lasting economic downturn in the 1990s. That's when the Japanese financial bubble burst and so did all the frenzied, speculative buying by international investors that inflated real estate prices in Hawaii.
Maui Grown Christmas Trees - Despite a struggling island economy, Upcountry Christmas tree growers are optimistic that consumers will find room in the budgets for a fresh Christmas tree this year. Last year, the Upcountry farms suffered losses during a severe winter storm in early December. Kula Botanical Garden sells Monterey pines ranging from 4 to 20 feet tall, grown on 9 acres on Kekaulike Avenue. The business sells between 1,000 to 2,000 trees a year. Last year, 2,200 trees were planted, according to McCord. Public sales will be held from 9 a.m. to 4 p.m. Dec. 5-7 and Dec. 13-14. Prices depend on a tree's height, with a 6-foot tree selling for $60. Taller trees cost more.
Maui Hotel Occupancy off 20 percent - Maui suffered the biggest drop in hotel occupancy in the state in September, to only 56.8 percent. That was 20 percent below the 71.6 percent enjoyed in September 2007, but the occupancy decline was not quite as steep as the drop in head count (27 percent) or in airline seats (26 percent). The numbers reinforced what had been observed and expected ever since April, when Aloha Airlines and ATA folded. Maui and Hawaii counties lost the most from those failures, but with the drumbeat of bad economic news from all over, the whole visitor industry went into an accelerating tailspin in the third quarter. Statewide, occupancy in September was down to 63.2 percent, compared with 74.2 percent for the same month a year before. Despite the slow pace, Maui hotels actually bumped up their posted rates by almost $6, to $227 a night. However, with nearly universal hidden discounting in the form of extra nights free, no-cost meals, etc., the real cost of a Maui vacation has gone down but so has the income of resort operators. The bottom line number in the survey is RevPAR (revenue per available room), and that plunged $30 from $159 to $129. September is a slow month anyway, but no other island came close to that kind of drop. The statewide occupancy rate has not been lower since September 2001, when airlines were grounded for several days and occupancy rates dropped into the mid-50s. With not much momentum going into the first quarter of 2009, the very short booking windows make it difficult to assess the immediate outlook at the moment.
Maui Basketball Invitational - Local hotel, restaurant and shop owners said that the EA Sports Maui Invitational tournament provided a nice little basketball bounce for the economy during an off season of an already-down year for tourism. The invitational brought in an estimated $8 million to Maui last year. The event is held at the Lahaina Civic Center, which is smaller than the practice gyms. The tournament is really made for TV, since it's featured on ESPN's networks. ESPN, ESPN2 and ESPNU combined to cover live of all of the tournament games, which last year drew 4.5 million viewers. The tournament has an even greater economic impact because of the huge exposure for Maui across North America, showing Maui across the nation with its beautiful island sunsets.
Tourism leader urges Lahaina to hang tight – Hawaii State Tourism Liaison Marsha Wienert believes September, 2008 was the lowest month that tourism will reach and she is not confident at all about 2009 because advance bookings for the first quarter of 2009 look dismal. The tourists love Maui and they may not have the money to visit now but visitor satisfaction surveys show that a high percentage of visitors give excellent ratings to the islands. The possibility of developing tourism from South Korea and China is improving and the Korean honeymoon market could become tremendous. The visa waivers for six European countries and South Korea took effect 11-17-08 with expectations that South Korean tourism double next year and then double again the year after that. The South Korean and Chinese market will develop the way Japanese tourism did. At first, groups traveled together to Waikiki. As time went on, Japanese tourists became more adventurous and began traveling alone to the Neighbor Islands.
Medical Facilities on Maui - The Association for Improved Healthcare on Maui (AIHM) http://www.aihm-maui.org whose mission is to serve as an advocate for the creation of a system that will provide improved healthcare services to all of the citizens and visitors of Maui County has been making some excellent progress. For more information on making a contribution to this great cause, please visit the web site for AIHM at www.aihm-maui.org/ourfriends.htm. To stay informed of what is transpiring with future approvals of either the Kihei or West Maui hospital, you can send me an email and request a subscription to the “Coconut Wireless” to either my email at Jim@JameBFoster.com or Jan@SunshineRainbows.com
Real Estate & Financial Planning Tips:
Short Sales - Loan Modifications - Foreclosure
What is a Short Sale - A short sale occurs when the proceeds of a real estate sale fall short of the balance owed on the property. A short sale typically is executed to prevent a home foreclosure. Often a bank will choose to allow a short sale if they believe that it will result in a smaller financial loss than foreclosing. For the home owner, the advantages include avoidance of having a foreclosure on their credit history. In short, a short sale is nothing more than negotiating with lien holders a payoff for less than what they are owed.
How does a property owner benefit from a short sale - A short sale helps to relieve the stress of being in foreclosure. You can get rid of your big mortgage payment and move on with your life while ending the harassment from your lender. A short sale also prevents additional damage to your credit. Some late payments have already done some damage to your credit, however a foreclosure will do much more damage and lower your credit score.
Are short sales guaranteed to work - There are no guarantees with short sales and the banks have to approve the sale.
Time required for a Short Sale - A short sale takes approximately 60-90 days to complete and sometimes longer. This complicated process takes time so to have the option of a short sale the seller cannot wait until 1 week before the foreclosure auction as it would be very difficult to do a short sale in that time frame.
What is a Loan Modification – This procedure is implemented for a property owner that wants to remain the owner, whether an investment property or their residence. There has to be a legitimate hardship and the ability to provide documentation to show the hardship. Lenders only modify loans for borrowers that truly need it. They want to save the property from becoming another foreclosure. Of the borrower is significantly upside down in the loan, the lender would rather put someone else in the home. Loan modification does not stop the foreclosure process and it typically takes 60-90 days. During that process the lender can foreclose if the borrower has not paid anything. If the borrower has an adjustable rate loan that is getting ready to adjust up and make it difficult for the borrower to make the payments, the lender will typically modify the loan as the do NOT want the property back. All of the proper documentation has to be provided just as the borrower submitted for the original loan and it has to be accurate.
Hawaii Foreclosure Law Summary - Judicial Foreclosure Available: Yes; Non-Judicial Foreclosure Available: Yes; Primary Security Instruments: Deed of Trust, Mortgage; Timeline: Typically 60 days; Right of Redemption: None; Deficiency Judgments Allowed: Yes
In Hawaii, lenders may foreclose on deeds of trusts or mortgages in default using either a judicial or non-judicial foreclosure process.
Judicial Foreclosure – The judicial process of foreclosure, which involves filing a lawsuit to obtain a court order to foreclose, is used when no power of sale is present in the mortgage or deed of trust. Generally, after the court declares a foreclosure, the property will be auctioned off to the highest bidder.
Non-Judicial Foreclosure - The non-judicial process of foreclosure is used when a power of sale clause exists in a mortgage or deed of trust. A "power of sale" clause is the clause in a deed of trust or mortgage, in which the borrower pre-authorizes the sale of property to pay off the balance on a loan in the event of the their default. In deeds of trust or mortgages where a power of sale exists, the power given to the lender to sell the property may be executed by the lender or their representative, typically referred to as the trustee. Regulations for this type of foreclosure process are outlined below in the "Power of Sale Foreclosure Guidelines".
Power of Sale Foreclosure Guidelines - If the deed of trust or mortgage contains a power of sale clause and specifies the time, place and terms of sale, then the specified procedure must be followed. Otherwise, the non-judicial power of sale foreclosure is carried out as follows:
The notice of intent to foreclose must be published once a week for three (3) successive weeks, the last publication to be not less than fourteen (14) days before the day of sale, in a newspaper having a general circulation in the county in which the mortgaged property is located.
Copies of the notice must be mailed or delivered to the mortgagor, the borrower, any prior or junior creditors, the state director of taxation and any other person entitled to receive notice. Additionally, the notice must be posted on the premises not less than twenty-one (21) days before the day of sale.
Notice must state: 1) The date, time, and place of the public sale; 2) The dates and times of the two (2) open houses of the mortgaged property, or if there will not to be any open houses, the public notice shall so state; 3) The unpaid balance of the moneys owed to the mortgagee under the mortgage agreement; 4) A description of the mortgaged property, including the address or description of the location of the mortgaged property, and the tax map key number of the mortgaged property; 5) The name of the mortgagor and the borrower; 6) the name of the lender; 7) The name of any prior or junior creditors having a recorded lien on the mortgaged property before the recordation of the notice of default; 8) The name, the address in the State, and the telephone number in the State of the person in the State conducting the public sale; and 9) The terms and conditions of the public sale.
Up until three (3) days before the sale, the borrower may cure the default and stop the sale by paying the lien debt, costs and reasonable attorney's fees, unless otherwise agreed to between the lender and the borrower.
The sale, which may be held no earlier than fourteen (14) days after the last ad is published, is to be made at auction to the highest bidder.
Any sale, in which notice has been given, may be postponed from time to time by public announcement made by the lender or their representative.
There are no rights of redemption in Hawaii.
In past newsletters, I have mentioned that the easiest way to minimize the tax impact when selling is to do a tax deferred exchange. If you have questions about tax deferred exchanges give us a call. If you are considering selling your property in Hawaii, a tax deferred exchange will exempt you from the 5% HARPTA withholding and also the Federal Capital Gains Tax. Planning in advance for the disposition or acquisition of assets is always a wise decision. Another invaluable tool for sellers in doing a tax deferred exchange is having the option of using tenant-in-common (TICs) for qualifying for replacement properties. Many property owners who currently own underperforming assets can sell those assets, taking advantage of tax deferred exchanges, and turn an underperforming asset such as land into an income producing asset. Call me or send me an email if you would like additional information at 808-661-7994 or email Jim@JamesBFoster.com
If you are contemplating selling highly appreciated real estate during 2008 and would like for us to provide an analysis of how to best structure your transaction, please call us at 1-888-661-7994 or send us and email at Jim@JamesBFoster.com
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www.worldtimeengine.com To compare time differences for up to 5 places and to accommodate reasonable timing with one click you can determine the ideal time for a conference call across the 5 time zones, just access this web site.
www.charitynavigator.org This easy to navigate service provides a rating system that examines the effectiveness of over 5,000 charities and applies a rating ranging from zero to four stars. In addition you will find lots of valuable information and tips to help you with your altruistic efforts.
www.isearch.com This web site provides lots of information about the object of your search including public record data, work history, education, social networking information, address, family, photos, public phone number, email, news and blog entries. The good news is that this great search service is free and you do not have to create an account or log in to use it but much of the data is provided by Intelius and they do charge.
Kindest Regards, Jim Foster
Chase 'N Rainbows Real Estate, Inc.
Toll Free 888-661-7994
Direct Line 808-661-7994
Cell 808-870-5858
Fax 808-667-2957
Real Estate for Sale www.JamesBFoster.com
Vacation Rental www.ChaseNRainbows.com
Email Jim@JamesBFoster.com
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