Kauai Foreclosure Updates

• Kauai Foreclosure Update since January 1st
• Kauai Year-End Foreclosure Statistics
• Kauai REO and Short Sale Listings

What is an REO? Real Estate owned, otherwise known as an REO, is real property owned by a bank or lender. Lenders commonly acquire REOs through the foreclosure process, but can also acquire ownership by other means, such as a deed-in-lieu of foreclosure (homeowners, be aware this is the same as foreclosure on your credit).

How is an REO Sold? When it comes time to sell an REO, lenders often use a licensed real estate agent, and list the property on the Multiple Listing Service (MLS). Working with an REO agent is no different than in a typical real estate transaction, other than there may be different forms required by the lender. Offers and counteroffers are common.

Things to Consider When Buying a REO:

• REOs are usually sold "As Is"
• The buyer may need to perform maintenance work, adding to the overall cost of the property
• There are often penalties assessed for a buyer's inability to close by a certain date
• Buyers may be responsible for the payment of any homeowner's association, condominium association or other outstanding assessments
• If the property is occupied, the Buyer is usually responsible for evicting the occupants
• Closing costs are often paid by the Buyers

Help for Homeowners:
If your loan is owned by Fannie Mae or Freddie Mac, you may be eligible for a faster refinancing program. If you aren't sure whether or not your mortgage is underwritten by either of these programs call your mortgage lender or servicing company or visit www.fanniemae.com or https://ww3.freddiemac.com/corporate/ or call 1-800-7FANNIE or Freddie at 1-800-FREDDIE to find out who owns your mortgage. Those with an existing mortgage underwritten by Freddie or Fannie who wish to refinance might be eligible for streamline processing even for some rentals or second homes. If you aren't sure where to begin, use the FHA Lender Finder located at http://www.fhaoutreach.gov/lender/lender.do.

In addition to the news and articles on the side of this page, here's more helpful information:

• Federal Trade Commision's "Note to Homeowners"
• HUD's Foreclosure Avoidance Counseling - Apply for Loan Modification
• The Expert Foreclosure Helper
• Buying REO Properties

Courtesy of RealtyTrac.com:

• REO Frequently Asked Questions
• Foreclosure Overview
• How to Buy Foreclosures