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You CAN Buy a Hawaii Short Sale With a VA Loan

David Kucic, RA
CRS, GRI, ABR, e-PRO, AHWD
First Sergeant, USA (Ret)
Tropic Lightning Real Estate, Oahu, Hawaii

The number of short sales on Oahu, Hawaii are growing each day and in some cases are a fantastic opportunity for someone interested in purchasing a piece of Hawaii real estate below market value.

David Kucic's very brief description of a "short sale".......

"When the balance of the mortgage(s) owed on the house are greater than what the fair market value of what the home is currently worth".

An example would be a home that was purchased for 400k in October of 2005. The balance left on the mortgage is 390k but the home is currently only worth 340k at "fair market value". The difference between the balance of 390k and the house selling for 340k is a "shortage" of 50k. If the lender(s) that hold the mortgage(s) on the property agree to do the short sale then they are willing to write off the 50k and take a loss rather than have the house go into foreclosure.

Team Kucic and Tropic Lightning Real Estate have several short sale listings and are well informed of the ins and outs, pros and cons of how to deal with them.

YOU CAN BUY A SHORT SALE IN HAWAII USING YOUR VA LOAN ELIGIBILITY! I have had inquiries by several military buyers that wanted to purchase a Hawaii short sale using their VA loan eligibility but were told by others in the profession that it WAS NOT ALLOWED. That is absolutely not true.

There are some properties in Hawaii that are not approved by the VA but those are few and far between.

MAKE SURE YOU ARE BEING SHOWN HAWAII SHORT SALES IF YOU ARE INTERESTED IN PURCHASING HAWAII REAL ESTATE! It may take a little bit more time to close but if you have "time" on your side, it could be a great opportunity for you.

Tropic Lightning!

Posted by 1SG (Ret) David Kucic on 07/09/2008 12:43 PM

Comments (2)

hawaii, real estate, kucic, tropic lightning real estate, va loans, military, short sale

Originally posted at: 1SG (Ret) David and Tonya Kucic: You CAN Buy a Hawaii Short Sale With a VA Loan

This post has been included in Hawaii Information Honolulu County, HI Information
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2 Comments on You CAN Buy a Hawaii Short Sale With a VA Loan

JUL

2008

Good Morning 1stSGT, Good to see your back. My experience with short sales has been anything but short in time. Take care.

Aloha Frank. It certainly can take a lot of time. In my experience, it depends on:

Has the lender been notified and/or approved the short sale
Is the Seller current on their mortgage payments or delinquent
Has the Seller spoken to the loss mitigation representative at their mortgage company and requested a short sale packet
How many mortgages are on the house
If more than one mortgage, are they both with the same company
In Hawaii especially, is the lender on the island in the mainland (the time difference can be a real pain)
And one VERY important thing.......is the price that the house is listed for reasonable or are the agent/seller only trying to solicit an offer on an unreasonable price just to get the mortgage company to order an appraisal

When I show short sales, I ask the Sellers agent these questions which gives me an indication of actually how long of a timeframe we are looking at should my buyer decide to submit an offer.

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