A Short Sale is a special transaction that allows a homeowner to sell their home, even when the mortgage debt is higher than the value of the property. A Short Sale will help the homeowner:
Avoid Foreclosure
Avoid Bankruptcy
Protect Credit Score from "foreclosure" ding
Be free of financial & emotional burdens
Buying a Short Sale property requires patience. Sometimes the banks are overworked, and slow to respond. It's important that you have a good agent working with you to provide complete market updates, analysis and insight as to the property's current value and market indicators for that area. I am part of a Nationwide Short Sales Specialist Certification program, and have the inside knowledge, connections and tools to ensure a successful transaction.
If you need to Sell Your Home - please understand that there's a clear difference between Short Sales vs. Foreclosureand the potential impact on your credit. Be sure to read the attached report and you'll also find more links and information at the end of this page.
Click on Listing Hotlist- updated every Monday. ALL Kauai Short Sale and Bank Owned Foreclosure properties on the MLS, including those that have just gone into escrow.
Our MLS system has recently adapted new protocals to allow for searches for Short Sales and Foreclosures, but not all listings are categorized correctly. This report pulls via several methods of research to put together a comprehensive list for you.
"Produce The Note" - 3 words that might stall your foreclosure!
Hawaii's Act 137 - Kauai Short Sales pose additional challenges not faced in other areas of the Country, due to the restrictions of Act 137 which was passed into law in the Summer of 2008. This Bill grew as an effort to protect distressed homeowners (at risk of foreclosure). Originally drafted so that both Attorneys and Realtors would be exempt from the restrictions defined in the Act, the final version signed by the Governor only exempted Attorneys. At a recent GRI Legal Issues class presented by James Stone, Esq. (a leading real estate litigator in the State of Hawaii), he provided a Summary of Act 137 .
It's a complicated Law, and I've heard various legal opinions about it, but the effect of it is that as a Realtor I'm restricted from advising any homeowner who is behind 60 days or more on any of lien regarding information that may help them avoid foreclosure. Ironically, Short Sales are one of the most viable positive solutions for a Distressed Homeowner, and who knows how to sell a home better than Realtors? It's counterintuitive as most Realtors are very motivated to help people. It's like trying to help someone with having your hands tied behind your back, and a gag (the worst thing for someone who likes to talk, like me!).
I participate in a Short Sales national network and have information that can help you accomplish a successful Short Sale. The information we're restricted from providing can be found on the internet and through networking outside of Hawaii. For instance, Elizabeth Weintraub in Sacramento has been very successful helping homeowners and has some good information readily available, such as this article.
Valuable Links and Resources:
The Mortgage Forgiveness Debt Relief Act of 2007, signed by President Bush, protects American families from paying Higher Taxes when they refinance their home. It also gives homeowners a 3 year window to refinance their mortgage and pay no taxes on any debt forgiveness they receive. Prior to this Act, if the value of your house declines, and your bank or lender forgives a portion of your mortgage, the tax code treated the forgiven as income that can be taxed. "When your home is losing value and your family is under financial stress, the last thing you need is to be hit with higher taxes." President George W. Bush, September 1, 2007
When facing a possible Short Sale or Foreclosure, it's very important to consult a CPA or Attorney for advise about your particular situation. If you need a referral, please contact me.
Nationwide Short Sale and Foreclosure Help - If you're stressed or worried about your loan, this short sale website has invaluable consumer information and resources to help any owner who may be facing a crisis with their loan. They are a neutral third-party, who can help you negotiate with your lender.
ABC News article"Facing Foreclosure -'Short Sale' can Help" highlights the benefits of a Short Sale if facing possible foreclosure, and the importance of working with an agent who specializes in Pre-Foreclosure Short Sales.
The Expert Foreclosure Helper- many articles with links to more information that will help you sort out what your options are if you're behind on your mortgage, or afraid of foreclosure.
Hawaii Reporter article summarizing the difficulty Act 137 poses for the consumer.
Loan Modification Resources: If you are looking for help you with your loan, please DO NOT pay anyone upfront fees - there are a lot of scams out there right now preying on homeowners in distress. Here are some reputable non-profit organizations focused on helping homeowners work out a Loan Modification:
Neighborhood Assistance Corp. of America: 1.888.302.6222
www.ActiveRain.com is an online community focused on real estate topics, resources and experts. A variety of groups focus on helping consumers to Stop Foreclosure, and learn about Short Sales as a positive option to get out from under an upside down loan. Surf the blogs, and you will find many, many helpful posts. A couple of groups to check out are:
Stop Foreclosure - A place for homeowners who currently are in, or may soon be facing, foreclosure on the mortgage for their principal residence (personal home). Providing information, assistance and advice on how to survive this very difficult time. How/Where to contact competent real estate Attorneys, REALTORS, and Foreclosure Counselors. (Please Note: Homeowners in mortgage foreclosure are STRONGLY encouraged to retain the help of a competent real estate attorney)
Short Sale Specialists and Pre-Foreclosure Education - This short sell and pre-foreclosure assistance group is intended to be a platform for sharing information that will educate real estate professionals and homeowners in the proper techniques of successfully executing a short sell transaction.
