mortagesandforeclosures

by Victor Beal

Hawaii has always been known as a tropical island paradise, a dream vacation, with it's perfect weather, white, sandy beaches and warm, loving people. But what about our real estate market? As those of us who live here know, the late 80's were an interesting time. Suitcases of money, hand-delivered by Japanese business men, smelling deals.

When 2005 dawned upon us the average Hawaii resident was suddenly cast into the frenzy of home ownership, with promises of 100% financing of homes. It really was too good to be true. But, that didn't stop the great majority of residents from getting into the action. Homes were purchased at a record clip. Cash-out refinances were popping all over the board and home owners were simply pocketing the money, buying cars, traveling to Las Vegas, living the life.

Much like the waves that coming crashing on our shore, so did our real estate market. Now the tide is sucking back out to sea. Home owners are baffled on how to sell their property in this economy. People that actually want to buy Hawaii property can barely qualify to get a standard loan, if at all. Most Hawaii home owners owe more on their mortgage than their property is worth, or at least, have no equity left in their property in this market.

Ok, enough fluff.....How do Hawaii home owners that really need to sell their property, sell? The answer, it depends. Several factors play into this answer.

Is the property over leveraged, meaning do they owe more than the property is worth? If so, the home owner my wish to take back a second mortgage with a new buyer, or come to the closing table with the balance of what is owed and what the new lender is willing to loan.

If the home owner is really upside down, then they may wish to consider a short sale. This is the process of selling the property for less than what is owed. In today's market, several banks are feeling the crunch and often some money is better than none.

There are many other potential solutions that exist, including deed in lieu of foreclosure. However, doing this will cause your personal credit score to drop. You will definitely want to avoid Realtors at all costs while looking at these solutions as their typically do not act in your best interest.

There is no better exit strategy for Hawaii home owners right now that to offer owner financing to new buyers. Again, you will want to consult a local Hawaii professional, that has experience with this, so that you do it right the first time and avoid legal issues down the road.

John's best strategy is to be the bank and have the new buyer "take over" their mortgage so to speak. At least until the new buyer can get new financing to cash John out. John will want to consult a professional that knows all about creative financing and creative real estate dealings. Unfortunately, 99% of Hawaii Realtors are NOT the correct choice in most situations.

Hawaii has been hit hard with price drops in our valuable real estate market. Sometimes home owners can afford to wait the 6 months or more to sell their property, and sometimes it is best to seek alternative methods other than local Realtors insisting that they simply continue to drop the asking price of their home. Be smart, before you get locked in with a Hawaii Realtor, explore other options like a IBuyHousesHawaii.com that knows exactly what it takes to get your property sold, sometimes in less than just seven days. Do what I did, and look into it while there are options.

About the Author:

Vic Beal is a freelance article publisVictorr in Honolulu, Hawaii and an owner of several properties. Victor recommends that you Learn Your Options To Sell Your Hawaii Property Now by consulting with a local, professional investment company. Victor is dedicatedto providing informative articles on tVictor state of Hawaii real estate.

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