With all the past 'flakey' transactions going on in the past, ACT 137, (Mortgage Rescue Fraud Prevention Act) was passed by the Hawaii Legislature and signed into law by the Governor on June 3, 2008. This act protects Hawaii consumers from those that prey on homeowners who face property foreclosures, liens or encumbrances.
I have not listed any short sales nor have I sold any due to my clientele being mostly military relocation clients who are not willing to wait out the time period just to find out if their contract may/may not be accepted.
It's not to say I didn't try....I did put in five offers recently...all were turned down.
They are also staying in hotels and for military personnel it is NOT the best option when they have little children and staying in the hotel for the duration of a transaction.....let alone the extra time and a lengthy process to have the lender approve it first!
Randy Prothero, fellow agent in my office as well as long time ActiveRain member wrote a post Lack of Action by Banks is Causing Harm best describes the inadequate staffing for lenders taking care of short sales. The time length and the amount of files a processor is handling is causing properties to stay on the market longer than needed and some may steer clear of these when it comes to buying a property.....yesterday.
A property is considered a "distressed" property if there has not been payment on the property for sixty days and over.
Act 137 makes it clearer to say that when the property becomes ‘distressed' that:
...........Thus, it is no longer possible for a real estate licensee (or anyone else, for that matter, unless they are specifically exempted from the Act) to assist or even coach an owner of Distressed Property with regard to lien holders, without entering into a Distressed Property Consultant Contract, which specifically defines notices that must be given, obligations and restrictions placed upon services to be rendered, and a limitation on the charges that can be made for such services..........
HUH?
If a consumer has the time to wait around in hopes that the underpriced home showing up in their emailed list of properties will be their home they could MAYBE get lucky. Remember, Hawaii is made up of little islands and we just have so much buildable land on each island. So, the inventory is there but the prices are still high for the most part, gone down in some areas, remained the same in others.
For others, such as the relocating military who usually don't have a whole lot of money when they get here it doesn't seem like a good alternative for the 'waiting game':
They do have a healthy Basic Housing Allowance every month that Uncle Sam gives them on top of their salary They also have COLA (cost of living allowance) added on to adjust for our higher living costs in Hawaii.- Until their allowances ‘kick in' they have no alternative when putting in an offer but to ask for a credit for closing costs...which pretty much lowers the net price of a short sale to the point the bank is looking at all the rest of the offers.....first.
- Should they WAIT?.... HOPING...WISHING .....when they can get into something else in another area....asap.
- The problem is that they do not have but 30-60 days in a hotel before they have to find a rental....or they are threatened to go into base housing lest they lose their place in line should they not find adequate housing
Again, short sales may be out of reach due to time constraints for the buyer....the seller....and US
Bottom line, the majority of short sales are either beyond reach for some and a great deal for others.
There is no in between.
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Celeste "Sally" Cheeseman is a Realtor-Associate with Century 21 Liberty Homes in Mililani, Hawaii. With a sharp understanding that a listening ear is the key to a client's needs she serves the island of Oahu (Honolulu County) and all Hawaii Military Relocating to Hawaii, Hawaii Retirees, Hawaii Job Transfers and Hawaii Residents. Website: www.hawaiihomesmarket.com
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