Homeowners who have ADU permits to build additional structures, but have not had the ways or means to act upon it, got a reprieve from the County of Kauai last Friday. Draft Bill 2322, which was passed by a 4-0 vote by the council’s Planning Committee Wednesday, would push the deadline for obtaining building permits for ADUs — formerly referred to as “‘Ohana Units” — from Dec. 15 of this year until the same date in 2014, but the extension would only apply to those who already have a facilities clearance form in hand or submitted, and would not open the process up to any new applicants, council members said.
Mayor Carvalho is expected to sign the bill into law shortly. This five year extension will more than likely according to local sources, be the final extension of this bill.
A separate bill that would allow previously existing TVRs (Transient Vacation Rentals) to continue on ag land until the government concludes its Important Ag Lands study was deferred, at the request of the Office of the County Attorney, until Nov. 10.
Sometimes doing a short sale comes with additional challenges. The borrower needs to get relief from the deficiency in many cases in order to get the full advantage of the short sale. When the bank plays hard ball, the borrower loses and so does the bank.
Bank of America short sales and their endless runarounds and contradictions have left a bad taste in my mouth for this banking and lending institution. Two years ago, my largest short sale problem was Countrywide. Countrywide would take many months to review files and just when you were getting ready to dig your own grave, the approval would come through. That wasn't the end. Just because Countrywide approved your short sale, didn't mean squat. I had an approved file closed for not sending in a form that Countrywide never asked us for. That was dealing with Countrywide.
Well, when a seemingly good bank (Bank of America), swallows a large problem whole (Countrywide), you know the outcome. The problem remains, but under a different name. Bank of America.
I had been working on a short sale with Countrywide/Bank of America for well over a year. It was a divorce. The first contract we sent at the beginning of the listing, was denied in one month. Why? Not enough money. It was the the highest offer we would ever see on the property in question.
The second offer came about six months later. Was with Countrywide/Bank of America for three to four months. Lower offer, but the writing was on the wall. The local market was in decline. The neighborhood where the property was located was in a steeper decline. Those months it took to accept the offer came back to haunt Countrywide/Bank of America when the buyer's appraisal came in. It was nearly $20K off the accepted sales price. Countrywide/Bank of America refused to accept the appraised value and my sellers were forced to kick that buyer to the curb.
Put the property back on the market, not expecting what we really needed. A cash buyer willing to overpay for the home and forgo their own appraisal. My short sale prayers were answered when that third offer came in. My sellers sent it in. It was the amount that Countrywide/Bank of America has refused to move down from in our second scenario AND, there was no seller subsidy as there had been in that second scenario.
Despite what should have been flagged as a slam dunk, Bank of America (no longer calling the monkey on its back Countrywide) took four months to get back to us on this deal. The deal was accepted BUT, the approval letter wa not the same approval letter as Countrywide had sent before. This one left my sellers wide open to collections in the future for the shortfall of the mortgage payoff.
We asked Bank of America to remove that wording. After all, they had received MEGA money from the U.S. Government to help them cover such shortfalls. Seemed qutie greedy of them to take from the government and then threaten to take that same shortfall amount from my sellers. The loan would be repaid and then some.
When Bank of America refused to changed their short sale approval letter and remove the collections language, my sellers declared bankruptcy and told Bank of America to shove it. My sellers refused to move forward with the short sale, and who can blame them? Now Bank of America has paid the attorney's fees to foreclose (estimated at a low end of $40K in my state) and will continue to face the same or worse market conditions. Not a good business move, but that's Bank of America for you. Wasting America's money!
Chris Ann Cleland, Realtor- Licensed in Virginia, GRI & Short Sale Specialist. Affiliated with Long & Foster, 7526 Limestone Drive, Gainesville, VA 20155. To contact Chris Ann, call 703-402-0037 or email chrisann@LNF.com.
Interesting interview with head of Zillow about the state of foreclosures and where we may be in this real estate market cycle. Thanks for the tip. Knowledge is power.... Thanks Spencer
The startling headline is this -- in 2006, the top 1/3 most expensive homes in each local area made up 16% of foreclosures. Today, the top 1/3 of homes make up 30% of foreclosures.
And here's the video from Bloomberg TV today discussing this and other issues. Sorry to come off as so pessimistic, but I call 'em like I see 'em. No spin here.
Many people who travel to Kauai seek a retreat on the North Shore in remotes places like Hanalei and Wainiha. Some tourists have heard that Poipu is the dry sunny side of the island and Poipu is where many vacation rentals and hotels are, so that's where they stay. BUT, what about the West Side? Today's Garden Island paper has an editorial piece that will give you a little insight into Kauai's west side and what we mean when we talk about the west side of Kauai.
Where does west Kaua‘i begin, and what does that geographical reference include?
If you’re talking to Rhoda Libre-Hayton, who chairs the Kaua’i Westside Watershed Council, it encompasses the area referred to as the Kona District of this island.
The trek is definitely “down-home, country-style, and rural-to-the-max” as one can eventually get all the way to Polihale if one stays at sea-level or if one opts to head up for higher ground to the Koke‘e mountains, the crown jewel of Na Pali Coast. In turn, west Kaua‘i is a mixture of honored traditions and innovative transitions as well as being a series of random delights that range from serene to spectacular.
POLIHALE BEACH at Kauai's west end - Awesome ocean and beach
Jeff's comprehensive post provides a lot of food for thought. As i begin my CDPE pursuit, there are many short sellers who i can help get out of this mess more unscathed than if they just sat there and did nothing about the foreclosure process and having negative equity in a property.
This is one of those posts where I wish I didn't have to write it, but felt it was so important to my readers that I would be remiss not to at least talk about it.
Everyone out there probably knows somebody who is behind on their mortgage payments, looking for alternatives and likely also just finding out that their home's value has dipped below what their loan amount is. I know some within my own personal circles. It's a tough situation for me to advise them as a professional because it's such a personal challenge to their pride and self-worth, not to mention their plans and dreams for the family. The question we're asking is "when is this going to stop and where are we heading?"
I'm going to put up a few graphs that show the trends nationally with regards to mortgage delinquincies:
This chart is by quarter - Single-family mortgages set a new record delinquency rate in the second quarter of 2009, according to a quarterly survey by the Mortgage Bankers Association. Those of us in the real estate business see the foreclosure process (just visit the local Sheriff Sale docket to see the current numbers) but the looming delinqency-to-foreclosure issue is far, far larger.
The Wall Street Journal on 8/3/09 reported the following quote: “While subprime mortgages sparked the first round of housing problems two years ago, now "troubles are lurking further up the food chain," says Joshua Shapiro, chief U.S. economist at MFR Inc. White-collar job losses have accelerated while more adjustable-rate loans to prime borrowers are resetting to higher payments. ‘You put all that together, it leads me to believe that the next leg down on home prices is going to come from the top,’ he says.”
The first objection someone may have would be to say "yes, but historically those who are delinqent usually get their act together and come current on the mortgage after a while". That WAS true, but not anymore! We call that the "Cure Rate", that is the rate of delinquencies that go back to current. The Wall Street Journal reported on 8/24/09 about a Fitch analysis that found that the Cure Rate from 2000-2006 was 45% (which means about half of people fix their delinquency). However, as of July 2009 the rate had dropped to just 6.6%! That means that over 90% of delinquent customers are going to foreclosure. Take a look again at the above chart...
The next thing someone will say is "well, that's the 'sand states' and not my area". Here's the chart for all 50 states showing the same breakdown of delinquencies and foreclosures. Guess what - most states have a significant problem, especially compared to historical figures.
Now the next thing someone may say is "aren't those loans going to get 'fixed' by a loan modification?" I know several people right now who are applying for a Lancaster County loan modification but are waiting and waiting. I hope it works out for them...
In reality, loan modifications are hardly making a dent. To me, that's a burning question. Why arent banks being more aggressive in giving customers the option to extend their loan and/or reset to a lower rate? Why are they being SO difficult? The people I know don't want to be foreclosed. They CAN make payments. They just need the terms redrawn to allow them to catch & keep up. Loan modifications are not helping us get this crisis under control.
What are the causes of all these delinquencies? Here's a chart that is enlightening:
Keep in mind, this post is not intended to give us "good news". You may be experiencing good things in your market and that's great. My intent is to get us thinking about the challenges that aren't going away and how we're going to address them as homeowners, agents and professionals. I'd love to hear your ideas!
This past Saturday, the Princeville hotel reopened as the St. Regis Hotel of Princeville. According to senior management, 96% of the previous staff has returned and has been receiving training over the last couple of weeks to understand the St. Regis brand, the top of the food chain for the Starwood Hotel Group. Over 1000 people viewed the hotel over the weekend during this soft opening and Kama Aina rates are in effect for local residents.
The hotel even boasted that they Had their first wedding this weekend. The hotel has been redone replacing the old marble floors with coconut wood floors, Koa, and african woods throughout. The formal grand opening of the hotel is scheduled for October 1st this Thursday. I hope to attend and will report back to you with what I learn.
This photo of the St. Regis lobby shows you the coconut wood floors, and solid Koa columns. What amazing woodwork. The background looks rendered to me, but I'll take some photos when i get up there this week.
Today's paper had a thoughtful article by Walter Lewis commenting on the appeals process regarding the valuation of Walter's property on Kauai. It is really quite a dichotomy to be a real estate professional whose success is somewhat tied to the work of appraisers who in this market are more conservative than ever. More often than in prior years contracts are cancelled due to a property not appraising for the contract price. At the same time, the county has raised the assessed value of most condos on the island. And despite the fact that the market has corrected 15-20% in most neighborhoods, island-wide the assessed value is only down 3%.
As Walter Lewis pointed out, This year was a banner year for the number of appeals by Kaua‘i taxpayers with nearly 1,000 filing exceptions to the amounts of their assessments. Steve Hunt, who is handling over half of the appeals, informed me that in over 15 percent of the cases that he was given, adjustments were made to the assessments, certainly an improvement from the taxpayer’s standpoint from the 2 percent rate that has been applicable in Board of Review hearings.
I spent time with a condo owner earlier in the week who did not achieve as good of results as Walter. In her condo complex in Princeville, the value of the land went up significantly. The county boasted that their new system had succeeded in creating a better balance of values between buildings and land. I find it hard to believe that the assessors can raise the value in such a declining market.
Another comment Walter makes:
Property taxes provide over 60 percent of the revenue for our county and are essential for its financing. But fairness to taxpayers is also fundamental and the 2 percent success rate for taxpayers in the Board of Review process is disquieting.
When the county releases its new assessments for 2010, there is certain to be a problem if values actually rise again. The county not only needs to consider it's balance sheet, but also the fiscal wellness of it's citizens too.
This diagram below over simplifies the Short Sale Process. It's important to know that any one of these stages can take weeks to occur. The main point of this post is so that you understand the Short Sale Process and temper your expectations with the knowledge that the timeline is pretty much out of your (and everyone else's) control. A great exercise in surrender, that's what I'd say.
One thing to note. With many banks these days, the loan modification department and short sale department are one and the same. This means the these folks are swamped. As one Home Rescue consultant described it to me, "Imagine your local Costco totally empty. And all there is are desks and piles of paper. That is what some of the bank's short sale/loan mod departments look like. The grey box in the center of the diagram can take months. It can take months to even get a response from the bank and then if the price offered has to be renegotiated you can go back around in that circcle for quite some time.
Wanna know more about Kauai short sales. Wanna know about great buying opportunities here on Kauai. I can send you a list of all the ofreclosure and short sales. Just drop me a note or check my blogs frequently.
1. 5796 Noni St., Wailua Homesteads. This is a 5 bedroom 2 bath home 2 story home. The home has nice curb appeal and is in an excellent location near Sleeping Giant (Nonou) mountain. The home is a good example of a home remodel gone bad. Check out a video walkthough by Hawaii Life's Susie Kunkel. Owned by American Home Mortgage Servicing Inc. MLS#226761
Price Changes:
Banyan Harbor G-80, Lihue. A 2 bedroom 2 bath fully furnished condo with partial ocean view. New price $224,0000. MLS#225936
4740 Hokuloa Place, Eleele. 3 bedroom 2 bath home for $289,900. Garage has been turned into a family room. MLS#225781.
5086 Napookala Circle,Princeville $727,800 MLS#224854. An amazing location on the Makai golf course in Princeville. Over 16,000 sq. ft. Some of my buyers think the home should be leveled! Ouch... Owned by Bank of America..
Buyers often request which bank owns the property. Dealing with each bank can be vastly different whether you are purchasing a Kauai REO or a Kauai Short Sale
You can search the entire state of Hawaii at the Hawaii Life website, and even set up your own account there.
Upcoming listings include some units at the Waipouli Beach Resort. This project, located across the street from the Kauai Village Shopping Center, was sold at the height of the market. It's an amazingly high quality construction, with the utmost in amenities. However, with super high maintenance fees, the market would not sustain the original developer prices. With the start of REOs in this complex, I anticipate the prices are going to adjust rapidly just as they did with other similar projects like the Aston Island on the Beach and the Hilton Kauai Beach Resort. If you want a deal at Waipouli Beach resort, keep your eye on the market. Here is a list of all the units for sale at the Waipouli Beach Resort today.
My wife Gwen is the consummate shopper. She knows how to find bargains.
This small chart below has Gwen's picks for best values on Kauai under $600,000. Many are short sales, being sold for under assessed value, etc. Some are in ready-to-move-in condition, have extra-income potential, and are REAL DEALS by my standards. A few are in Princeville. Just take a look at these homes!
Click on the MLS to see more details on each property. Once in the MLS listing, click on the icons at the top of the listing for pictures and additional info.
Disclaimer: ActiveRain Corp. does not necessarily endorse the real estate agents, loan officers and brokers listed on this site. These real estate profiles, blogs and blog entries are provided here as a courtesy to our visitors to help them make an informed decision when buying or selling a house. ActiveRain Corp. takes no responsibility for the content in these profiles, that are written by the members of this community.
Countrywide never asked us for. That was dealing with Countrywide.
Despite what should have been flagged as a slam dunk, Bank of America (no longer calling the monkey on its back Countrywide) took four months to get back to us on this deal. The deal was accepted BUT, the approval letter wa not the same approval letter as Countrywide had sent before. This one left my sellers wide open to collections in the future for the shortfall of the mortgage payoff.
Night Shot from Waipouli Beach Resort in Kapaa.
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