Kona Kohala Blog

It may be no surprise that the number of short sales and foreclosures continues to rise but where it's rising in the marketplace may be a surprise.  Historically we've been watching lower end homes being recalled by the banks as foreclosure properties if they didn't make it in a short sale.  Well, that lower end has slowed down, quite a bit.

What's changing today is that the middle class and the upper class or high end homes are now making their move towards foreclosure and short sale.  One of the reasons is that those with deeper pockets could hold out longer, which they have but this economy is hitting everyone.  Those pockets while deep do still have bottoms and after a year or two without a job or at a much lower paying job, the assets are running low.  Even the wealthiest are starting to feel the pain as their home values drop below what is owed.  Entire neighborhoods that were home to the "well to do" are experiencing this economy and it's not treating any one group any nicer than another.

In West Hawaii, we're starting to see short sales in homes over $1,000,000.  This means they've given up making payments or are about to and just want to get out with some of their credit rating left.  For those who have been sitting on the side lines waiting to buy some of these nicer properties, now is the time.  In looking through listings in Kohala Ranch today I came across a foreclosure, the first one in a while up there.

If you're one of those people who have been waiting patiently for this moment you are about to reap the rewards of that patience.  In a short sale, the price paid for the property is of no concern to anyone including the banks.  What is important is today's market value.  The banks are typically taking approximately 85% to 88% of market value on short sale properties but you do have to be patient a little longer.

Short sales are notorious for taking a long time.  That is getting better as banks are learning to use modern methods of dealing with short sales, something they haven't had to deal in over a decade.  More agents are becoming familiar with the process which is also helping to speed things up.  I've applied for my Short Sale and Foreclosure Designation after having taken all the required course work.  At first I was hesitant to be involved with short sales due to the bad publicity.  Now I realize they are the thing of the future and that future is now, this is our "normal" and what we're going to be faced with in the foreseeable future.

Check out our page on Short Sales.  They're not for everyone but they can be a great deal if you're one of the people who qualify.