Yesterday's West Hawaii Today had a notice of foreclosure sale for a Halii Kai condo at Waikoloa Beach Resort. The ActiveRain blog post that has brought me more prospective buyers than any other was the announcement of the listing of Halii Kai 16C as a foreclosure--and this notice is for the mirror-image unit next door!
Careful distinctions are in order here. Usually when people ask me about "foreclosures" they are actually interested in what banks and real estate agents refer to as "REOs" or real estate owned by a lender after completion of the foreclosure process. Less commonly, they want to know how to find out about properties up for foreclosure auction, such as this Halii Kai condo.
The Halii Kai condo set for foreclosure is in one of the closest buildings to the private Ocean Club amenities
Under Hawai'i law, there are two avenues for foreclosure. Non-judicial is the more common (that's the equivalent of a sheriff's sale). This notice was for a judicial foreclosure, which follows a slightly different process. In both cases, it is rare for a bidder other than the foreclosing bank to buy the property. In the case of a judicial foreclosure, the sale is subject to court confirmation and as a real estate agent I do not represent buyers in these sales.
I've been tracking this particular Halii Kai condo for many months thinking it should be coming on the market as an REO. I've recently seen with other distressed properties at the Kohala Coast resorts that the companies handling the foreclosures are having a tough time properly serving the owners (since these are second home or investment properties with non-resident owners). When that happens, they cancel the trustee sale and move to a judicial foreclosure.
If you want to preview Halii Kai 16B which is the 2 bed/2 bath condo with a bit of ocean view that's facing foreclosure auction, there will be open houses on the afternoons of May 7th and 14th. The Foreclosure Sale takes place on Tuesday May 24th, but again is subject to court confirmation and you will probably be outbid by the receiver for the mortgagee. In that case it could be many months before the condo is listed as an REO; and if what happened with its neighbor is any indication you might find yourself in a bidding war!
Alternatively, there are short sale opportunities at Halii Kai in the $500,000 range that would have you enjoying your new Halii Kai condo and sunsets at the Ocean Club long before this foreclosure finds it way back on market.
A hui hou