General Explanation Of The Hawaii Kai Real Estate Short Sale Process

By
Real Estate Agent with Valcore Realty Group

We receive a number of calls each week asking about the Hawaii Kai real estate short sale process. Since we have handled quite a number of Hawaii real estate short sales and have gained extensive experience dealing with a variety of different lenders we thought we would take the time to explain the process.

First of all, lets define what a short sale is. A short sale is when a home owner needs to sell their property for whatever reason and they do not have enough funds from the sale of the Hawaii real estate property to satisfy the outstanding liens such as the 1st and 2nd mortgage that are attached to the subject propety. A short sale is many times a "pre-foreclosure" but not always. There are some instances where a distressed home owner is current with their payments but is struggling and is on the brink of going into default and not paying their mortgage. In most cases, a Hawaii Kai real estate owner is in a distressed situation, has not made their monthly mortgage payments for some time, and has received a notice from the bank threatening foreclosure. Whichever the case may be, in order for the sale to go through the Seller's lender must first sign off on the deal and approve the loss that they will be taking.

In nearly all cases, a lender will not review a short sale request without a complete package from the distressed owner. One of the items in that packet is a valid purchase contract between the seller and a potential buyer. Once an offer is received on the property and a complete packet is submitted to the 1st lien holder, then they will start the process of assigning one of their negotiators to the file. This process normally takes 30 days. Once a negotiator is assigned to the file, then it normally takes another 30 to 60 days to receive the lender's decision. They will normally accept the terms of the purchase contract or will counter. Once a meeting of the minds takes place between the distressed owner and their lender, then the lender will issue an approval letter. That approval letter will state the terms that the lender is agreeable to and a timeline as to when the transaction must close. If their are other lien holders on record, the 1st lien holder will also state in their approval letter how much funds they will allow those lien holders to receive from the sale. It is then up to the Hawaii Kai real estate professional to negotiate with those other lien holders and to get them to agree with the 1st lien holders terms. It is often times a delicate situation because without all lien holders approvals the transaction cannot move forward. Once all lien holders have agreed to the terms of the 1st lien holder, then escrow can be opened and the normal timelines of a "non short sale" Hawaii Kai real estate transaction apply.

This is a real general explanation of the Hawaii real estate short sale process but this covers a majority of the questions that we are asked. We hope this information has been helpful and feel free to call us at 888.450.4140 or visit our Hawaii real estate website to view Hawaii Kai real estate listings.

close

This entry hasn't been re-blogged:

Re-Blogged By Re-Blogged At
Topic:
Home Buying
Location:
Hawaii
Tags:
hawaii kai real estate
hawaii kai homes for sale
hawaii real esate
hawaii kai foreclosures
hawaii kai shortsales

Post a Comment
Spam prevention
Spam prevention
Show All Comments
Rainmaker
722,837
Patrick White
Home Driven Realty, Inc - Baldwin, NY
Driven to bring New Yorkers home

Good Afternoon Ryan

Thanks for the post and information. Have a great day.

Feb 02, 2011 09:26 AM #1
Post a Comment
Spam prevention
Show All Comments

What's the reason you're reporting this blog entry?

Are you sure you want to report this blog entry as spam?

Rainer
22,411

Ryan Tongg

Ask me a question
*
*
*
*
Spam prevention