We all know that short sale homes are in the news.  Every one is talking about it at work.  But really, honestly...what does that mean to me?  I don't see that many foreclosures or short sales in Hawaii compared to the national news which covers mainland states such as Florida, Nevada, California, Ohio and Arizona.  How do I find them?

The easiest way to remember what a "short sale" means is that when you sell or buy a property at a specific price, the seller is short of funds that he owes the lender(s) and or lien holders   Or, the sales price is not high enough to cover the balance owed to lenders, taxes, homeowners associations, conveyance fees, marketing fees or commissions and other costs associated with a sale or purchase.  If the listing agent or seller says that the property is a short sale, then what they mean is that even if you brought in a full price offer at the listed price, the seller is still short of funds to repay all lien holders and other selling costs at close of escrow.

A short sale is often dreaded by agents or buyers because a "short sale" transaction typically requires lender or lienholder approval if the seller does not want to or cannot come to closing with extra funds out of pocket (usually a short sale is only approved if the seller has no to little available funds).  Lender approval can be as quick as 30-60 days, in most cases 6-8 months, or in some cases over a year.  The time frame that it takes depends on the lender, the investors of the purchased mortgage(s) and the purchase transaction itself (the current value of the property, the amounts owed to the lender, the deficiency based on the purchase offer(s), the actual hardship of the seller, the ability of the buyer to perform (remember, if the lender takes time to negotiate and approve a short sale, the buyer needs to qualify for the loan at whatever the going interest rate is)), as well as, the skills of the real estate agent and negotiator.

If you are a buyer and looking for a bargain property, you might think you want to buy a "short sale" since it is almost proof to you that you found something priced less than what the current owner bought it.  However, be prepared to wait for the lender to approve or let alone look at your transaction (some lenders have a 60 day wait to even look at the offer) because of their overwhelming work load.  If you are hard pressed to qualify at the lowest rate or at today's rate and can't wait or get stressed waiting for the seller's lender communication or approval, a short sale transaction may not be for you.  However, if you can be flexible, you may find that you can purchase something "under" market value because the lender may indeed approve your offer since they do not want to absorb more costs such as attorney fees and foreclosure costs.  Let your agent know that you're looking for the best buy and I'm sure that agent will line up just what you're looking for.  The ratio of short sales and REOs in certain neighborhoods is growing...

While we have been seeing the news media throw around credit and financing terms at us, it still is confusing to know what our options are.  Many people know people at work or around their sphere of influence who are upside down or worried about job loss.  They, like me, have been asked what should they do with their current upside down situation (owning more house than they can afford or owing more loan than their house is worth)...

It would be helpful to obtain the advice of a realtor, a loan officer who can originate a refinance loan, a loan modification specialist, an attorney, and a CPA and ask them what should I do.

Fortunately, the Obama Housing Plan has encouraging news that their plan is enticing lenders to modify loans or solve home owner situations who may be in a foreclosure situation (i.e., by way of a short sale).  We might even see some fortunate home owners see loan interest rates as low as 2%.  (Of course equity and debt ratios are issues.)

One of the solutions a home owner can do on their own (by themselves) is to contact their lender directly and ask to "modify their loan".   If you do your own loan modification, there should be no charge from the lender.  (This may take as long as six months according to one borrower.)  Or ask someone who is proficient at submitting information and negotiating with a lender (a mortgage or loan modification specialist. I've experienced a processing that took less than one day followed up by mail in ten business days.)  This solution for a homeowner will often result in a lower housing payment and less "closing costs" that a "refi" may involve.  The loan modification can include a principal reduction, lower interest rate, a longer mortgage term (say instead of 30 years, extended to 40 years).  Sometimes, your loan modification payment may be slightly larger because the lender has amortized your payments and your past due balance over a new term so you don't have to come up with the past due amounts that are accruing and or necessary to cure your default (foreclosure sale). 

Every day is a new day for lenders.  In fact, since the general details of the housing plan was announced on March 4, lenders themselves have pegged mid-March (March 17) as a date to release their specific plans available for borrowers.  Every lender is different in terms of how they negotiate or calculate loan modifications for individuals; every borrower is different from others in terms of their unique situation.

I have helped friends with their loan modifications since last January 2008, and have seen the changes in underwriting, staffing and service with solutions for our credit-challenged or equity-strapped property owners.  While most loan modification solutions are aimed for "the home owner" vs. the investor, I have seen a 2nd lowered temporarily from 13.5 to 4% for an investor.  Every situation is definitely unique.  Every lender is different. 

Before you call though, I would gather all your necessary documents, such as two months pay stubs, bank statements, two years tax returns, your hardship letter, your financial snapshot for the month, and any other assets or liabilities (mortgages, auto loans, credit cards, and other debts owing) so you can communicate intelligently with your lender.

If you have any questions or comments or would like to add your findings as you work with different lenders, please let me know or email me!

Ronda

Ronda Ching Day

Realty Executives Oahu

1920 Ala Moana Blvd #102

Honolulu, HI  96815

aloharonda@gmail.com

Are you or your client moving to Hawaii with an important family member that may need quarantine? 

Hawaii is rabies-free.  This means that all dogs and cats must comply with Hawaii's animal quarantine laws.  There are some restrictions on certain breeds.  However, you should go online (go to the Hawaii government site below) and read the 5-day-or less program and its checklist in case you would like your pet to prepare for such a program.  Otherwise, your pet may need to be quarantined up to 120 days. 

http://hawaii.gov/hdoa/ai/aqs/info

 Ronda Ching Day (RA)

Ronda sells Hawaii Real Estate

If you're visiting the Hawaii and are staying or visiting a home that has a tree with green or golden to crimson colored, plum-like fruit (although a little larger and some varieties are elongated heart shaped), it may be a mango tree.  Don't eat the fruit that has fallen to the ground.  Those are likely overripe.

Pick the fruit off the tree.  (Of course, ask permission of the owner.)  I like mangoes that are a sunny yellow with some hint of apple green and firm because I like green mangoes.  Most people love the fruit that are orange-yellow swirled with crimson patterns because these are tree-ripened, juicy sweet, delicious mangoes.  

Once you learn how to cut your mangoes so you can eat them without peeling its satin-smooth skin (time-consuming), serving them is a snap.  Have mangoes at a three-star plus hotel and you'll most likely be served a tasty treat (vs. over-ripened or bruised). 

If you're looking for a home and it has a mango tree, make sure you or your gardener will prune seasonally, rake up its leaves (as opposed to blowing) and discard the abundant fruit if found on the ground.  A mango tree can be a very high maintenance plant but if you love its fruit for breakfast, dessert, or in chutney, it's worth your efforts.

Caution, some people are allergic to mangoes and or its sap.

P.S.  You can still find mango trees in backyards of homes in neighborhoods such as Manoa, Kaimuki, Lanikai, Liliha, Nuuanu, Kalihi, Waianae,Wahiawa,Kaneohe and other green but sunny areas.

Ronda Ching Day

Ronda sells Hawaii Real Estate

What to eat after sunning at the beach?

Need a snack after surfing?

Willing to give your taste buds a test? 

Stop by Hank's Haute Dogs across from the Volvo car dealership and behind the Sprint office on Ala Moana, that is, at 324 Coral Street...(between Officemax and the former Comp USA site) in Kakaako.  Near the Kakaako Waterfront Park and Ala Moana Beach Park.  Close to One Waterfront.

Opened by Hank Adaniya, aka restauranteur of Chicago's five star dining experience Trio, you will be wowed by the menu and dogs here.  Genuine Chicago Vienna all-beef hot dogs with its famous snap!  Portuguese, Andouille, Chorizo, Chicken, Bratwurst, the No Dog, Polish and Chili Dogs (currently priced from $3.75 - 6.25).  For the more adventurous, you can find the daily special and be surprised on Monday.  Otherwise you can look out for Alligator, Rabbit, Buffalo, Lobster, Duck & Foie Gras and a Kobe Dog!  

Their Haute Dipping Sauces include Wasabi Tabiko Creme, Garlic Aioli, Curry Ketchup and Chilpotle Mayo.  Their Awesome French Fries take almost 3 days to make...Castle Rock potatoes, twice cooked, and crispy.  Their Sweet Onion Rings must be made from a whole onion...enjoy.

I just came from a Friday Haute Nite...5-9 pm.  Cool specials and BYOB.

It's not only refreshing to see such vitality and zest in an urban warehouse zone... what otherwise would be a dark block on a Friday night.  Look out for more eateries and finds in the Ala Moana Ward Kakaako Downtown neighborhoods. :)

Note:  Part of scouting for a vacation home or real estate is looking up its neighborhood and community, finding good eats nearby and services that are dependable and A quality.  Send in your tips.  We're always on the look out for great finds!

 Ronda Ching Day

Ronda sells Hawaii Real Estate

One of Honolulu's superblock of retail, dining and new residences is located between Ala Moana Shopping Center (between Ala Moana and Kapiolani Boulevards), Walmart/Sam's Club (on Keeaumoku Street) and the Ward Shopping Compex.  Over the last fifteen years and more recently, within the last two, new luxury towers have been displacing what was once warehouses and auto body shops.  These architectural trophies are creating an interesting skyline for Honolulu postcards which you can now mail to friends and family.

If you are looking to buy or sell a one bedroom (1 BR) condominium in this Hot Neighborhood (Kakaako), ask Ronda Ching Day to help you.

As of today, there are 21 Active Listings of One Bedroom Condominiums in the Kakaako neighborhood:

Building                #units for sale          Sq. Feet             List Price Range

909 Kapiolani           6                          601-607             $419,900 - $499,000

Keola Lai                 1                          673                    $595,000

Moana Pacific           3                          701                    $485,000 - $510,000

Nauru Towers           2                          940                    $724,800 - $849,000

One Waterfront        1                          804                    $350,000 (leasehold)

One Waterfront        1                          1270                  $675,000

Royal Capitol Plaza   4                          542-584             $355,000 - $379,000

Contact Ronda Ching Day at (808) 387-1474 or email AlohaRonda@gmail.com for a current market listing of active, pending sales and solds.

Many new transferees choose this area to live in order to walk to several beaches, check out the surf from their bedroom window or lanai (hawaiian word for balcony), work part-time at a Waikiki boutique or restaurant, hotel, or shopping center.  There are quite a number of medical care centers and office complexes close by.  Many residents are choosing to walk or catch TheBus to work.  Some people love getting up before sunrise, walk to Ala Moana Beach Park and swim with the turtles and other marine life.

Ronda Ching Day

Ronda Sells Hawaii Real Estate

Should we wait to purchase or sell my home in Hawaii?

Occasionally I hear that people are asking themselves whether they should wait to purchase or sell their home now.  With the media focusing on the U.S. mainland's subprime fallout, distressed properties (pre-foreclosure, short sale, foreclosure, and bank-owned properties), rise in fuel prices, the credit card crunch, inflation and future Hawaii tourist spending patterns, this is a natural question. 

Whatever your crystal ball tells you, one thing that we can predict is how interest rate affects payments and purchasing power.  We need to understand this effect even if someone has "all cash to purchase" because neighborhood values of homes or "pricing" are affected by overall consumer budgets and their buying power.

The table below shows mortgage (principal and interest) payments on a $400,000 loan.  A 1% interest rate hike drives your monthly payment 11% higher.

Let's look at the effect of interest rate increases on your buying power.  The table below assumes you can afford $2500/month on your mortgage (principal & interest) payment.  A 1% interest rate rise reduces your buying power nearly 10%.

From the analysis above, if you or someone you know is waiting for home or condo prices to drop, a rise in interest rates could easily offset that price drop. 

Ask yourself the following questions:  What is more likely to occur in the next year; mortgage interest rates increases by 1% to fight inflation or a 10% drop in home/condo prices?   Will lenders put in place stricter underwriting guidelines for borrowers; i.e., requiring more down payments, higher credit (FICO) scoring, and lower debt-to-income ratios?

If you're getting ready to relocate to Hawaii, buy your first home or are selling and trading up, contact Ronda Ching Day @ 808-387-1474 or AlohaRonda@gmail.com for a no obligation consultation.

Ronda Ching Day sells Hawaii Real Estate

Travellers tip for newcomers driving around Oahu:  If you forget to pick up a handy pidgin english dictionary (the local dialect that is grammatically patterned after several Asian languages), remember at least these four words to get around the island:  Mauka, Makai, Ewa and Diamond Head.  With your back to the mountains (mauka) look towards the ocean (makai) and you will be given directions based on geographical landmarks such as Diamond Head (east) and Ewa (west). 

Ronda Ching Day Sells Hawaii Real Estate

I have a listing on the Big Island: a luxury townhome for sale at the Waikoloa Beach Villas…a perfect respite for vacations, retirement or a second home. The Waikoloa Beach Villas is conveniently located on the Kohala Coast approximately 20 minutes (by drive) from the Kona Airport. This gated resort community is superbly located as it is off one of the first arteries on Queen Kaahumanu Highway from the airport. Part of a World Class master planned community, Waikoloa Beach Resort, this community is the action spot of the Big Island’s Kohala Coast…An impressive setting where sun, sky and water meet, vacationers and residents are able to create wonderful memories for a lifetime. With a unique mix of outdoor activities, guided cultural tours, Hawaiian hula and music performances, and exciting annual events, Waikoloa offers something for everyone! Many visitors plan their vacations around the Kohala Coast’s fun-filled events that include petroglyph tours, the annual Great Waikoloa Ukulele Festival, Great Waikoloa Rubber Duckie Race & 4th of July Extravaganza, Aloha Festivals Ho‘olaule‘a, and Passport to International Cultures. Why Waikoloa Beach Villas? Its location is unbeatable. Need a fresh brewed cup of coffee? Walk across the street to the new Queens' Marketplace and enjoy a fresh latte and pastry. Then take a short stroll to the sparkling shore at Anaehoomalu Bay where you can soak in the sun or enjoy a variety of ocean activities including sailing, snorkeling and deep sea diving. Also in easy walking distance is Kings' Shops with resort fashion, art galleries, and an array of specialty stores. Dine at renowned restaurants Roy's Waikoloa Bar & Grill and Merriman's Market Place. And don’t forget… The stunning Beach Golf Course that borders Waikoloa Beach Villas provides calm vistas and hours of challenging play. The turnkey contemporary Waikoloa Beach Villa that I have listed was the developer’s model unit, thoughtfully appointed by an interior designer with island furnishings (valued approximately at $50,000)…a private end unit with dramatic nine feet ceilings on the first level, an intimate Great Room, three private bedroom suites, a roomy loft and central air conditioning. Its generous outdoor lanai comes with barbecue grill and wet bar to set the stage for leisurely entertaining. The grounds include 2 resort style swimming pools and a fitness center. Inspired by historic plantation design and resort living, this luxury townhome is the perfect respite for a party of one to a party of eight or more! Priced at $845,000 fee simple (MLS#2804224)

Ronda Ching Day Sells Hawaii Real Estate

Subject: Hawaii Real Estate Market Conditions

Local Neighborhood Real Estate:  Kapolei Knolls

Ronda Ching Day continuously monitors local Hawaii real estate statistics to keep her clients informed and ahead of the real estate trends.  Below you will find real estate statistic regarding a sought after subdivision Kapolei Knolls for the first week of June.

New homes on the market within the week: 2

Number of homes for sale:  19 
Number of homes in escrow: 6
Number of homes closing escrow (sold) in May: 1

Number of homes expiring in May: 2

The price range of the active listed homes for sale is $599,000 to $898,000.  Of the active Kapolei Knolls listings, one is a foreclosure and the other a short sale.  Average days on market for active homes:  76.

The price range of the listed homes in escrow is $498,000 to $685,000 with the home interior square footage ranging from 1226 to 2488 sf on lots ranging from 5000 to 7854 sf.  Average days on the market for those currently in escrow = 14 days.

The one home that closed escrow in May was listed at $899,000, went into escrow in 1 day, sales price of $885,000. 

Of the 8 properties that sold within the last six months the average days on the market was 40 days.

Kapolei Knolls is in the "Second City" of Oahu, Kapolei, within minutes from the Kapolei Golf Course, shopping, entertainment and dining.  New shopping malls are large block tenants are pegged to arrive in this city soon.  (Below:  Kapolei Golf Course)

If you are thinking of selling your home within the next six months and would like a free market value evaluation and tips on how to sell your home for more money and beat the market!, please call Ronda Ching Day at 808 387-1474.

If you would like a free list of homes for sale in this area/neighborhood, would like more information about Diamond Head, Hawaii Kai, Honolulu, Kahala, Kailua, Ala Moana-Kakaako, Kapolei, or any other area on Oahu, or would like to be the first to know about hot new listings before other buyers do, then give me a call at:

Ronda Ching Day (RA)
Ronda Sells Oahu, Maui and Hawaii Real Estate
Call "Help Me" Ronda and Beat the Market!  (808) 387-1474
aloharonda@gmail.com