Will Act 48, the Hawaii Foreclosure Law, ruin the Hawaii real estate market?
This is my 32nd year in Hawaii Real Estate and each year is very different. We certainly have a dynamic business. Waking up unemployed every day does have its benefits though, you learn to adjust very quickly, or you don’t eat. I like to eat, as those of you who know me can tell.
On May 6th, 2011 Act 48 became law in Hawaii. I first blogged about Act 48 here, Act 48 – Hawaii Real Estate Values to Decline. In my earlier blog, I predicted that the courts would clog up with judicial foreclosures. That prediction is starting to happen a lot faster than I thought.
Fannie Mae announced June 10, 2011 that they will now only be doing judicial foreclosures in Hawaii. Read the Fannie Mae announcement here. Today, I attended a free educational seminar for real estate brokers on Maui presented by Title Guaranty Escrow that provided additional insight into the new law.
Hawaii has two types of foreclosures:
- Judicial
- Non-judicial
Lenders may choose either form to foreclose at their discretion. Non-judicial has two forms, part 1 or part 2. Up until now, a lender could choose either form. Part 1 is quick, gives poor notice to the party being foreclosed upon, and is the lowest cost and quickest option for lenders as it does not require a court or judicial process. Act 48 has put a moratorium on Part 1 foreclosures until July 1, 2012.
Non-judicial part 2 still does not require a court process, but lenders had not been using it because it required the borrower to sign a conveyance document back to the lender; Act 48 eliminated this requirement. Part 2, non-judicial foreclosures may still proceed.
Judicial foreclosures are held in court auctions and have a confirmation process to keep bidding open for 30 days after the auction. The key difference between the two types of foreclosures is that a deficiency judgment against the borrower is allowed under the judicial process, but is not allowed under the non-judicial process.
What is this going to do to the market?
Here is my prediction for the short term market over the next year:
- We will see an immediate and very large reduction of new REO (bank owned) real estate in the Hawaii market. Already, many listings have been removed from the Hawaii MLS inventory.
- We will see very few new REO listings come up for sale, unless they have gone through the judicial foreclosure process.
- The existing REO inventory will be scooped up by savvy buyers who want to buy at the bottom of the market.
- We will see a price escalation almost immediately as a result of the diminished supply of REO properties. Short term prices will jump across the board.
This model, Supply and Demand graph, illustrates this very simple economic principle. Less inventory with the same demand equals higher prices.
So, the question is, are we at the bottom of the market? My simple answer for the remainder of 2011 and first half of 2012 is yes. After that, a lot could happen. With a moratorium on all Part 1 non-judicial foreclosures until July 1, 2012, things will change.
What will happen for sure are some of the following:
- Banks will finally wake up to short sales; they will have no choice unless they want to sit on the properties for years to come. It will now become attractive to buyers to place short sale properties under contract as there will be hope that the lenders will now respond.
- Many delinquent owners will continue to occupy properties and not pay their mortgages.
- Foreclosure in Hawaii will be limited to either Part 2 non-judicial foreclosures, or to the judicial foreclosure process which could now take up to 5 years if Hawaii does not offer some expedited judicial process immediately, and that is very unlikely to happen with the current budget crisis in Hawaii.
For lenders, the options are extremely limited and they have been backed into a corner. Now that the courts will be backed up, will they begin to entertain short sales with a little more haste and enthusiasm?
An interesting side note to this whole article is that for the most part, almost all of the local Hawaii banks, Bank of Hawaii, First Hawaiian Bank, and American Savings, have been following the much slower, but more certain path of judicial foreclosure since the crisis began.
My son, Jeremy, and I have facilitated the sales of many REO properties for these local banks and we have not had one problem with obtaining title insurance, or loans for any of the properties we have sold over the past three years. We have also represented many buyers on REO/bank owned/foreclosed properties and we know what to look out for and how to get the job done.
If you want to buy Maui REO properties, or make an offer on a short sale and/or if you agree/disagree with my analysis, contact me today.
- All Maui Residential Home Foreclosures
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Tracy Stice, R(B)
Hawaii Life Real Estate Brokers – Maui Broker in Charge
808.281.5411
Tracy@HawaiiLife.com
Heidi White
June 25, 2011
Tracy, Thank you. I am still reading all the links you have provided here and I find myself so pleased to find all this information in one place! This is blog is a great resource! As a Realtor in Hawaii we are in the midst of all the nuts a bolts of the moment holding hands with all of these owners & Buyers and I find it hard to bring a complete clarity to their (and our) situation. Your perspective does greatly clarify this (sad) world event and how it is dealt with in our lovely state of Hawaii….Mahalo!
Heidi White
June 25, 2011
Tracy, Thank you. I am still reading all the links you have provided here and I find myself so pleased to find all this information in one place! This is blog is a great resource! As a Realtor in Hawaii we are in the midst of all the nuts a bolts of the moment holding hands with all of these owners & Buyers and I find it hard to bring a complete clarity to their (and our) situation. Your perspective does greatly clarify this (sad) world event and how it is dealt with in our lovely state of Hawaii….Mahalo!
Tracy Stice
June 25, 2011
Heidi,
It is extremely important to contribute to this discussion with first hand information. The legislature is meeting next week to discuss what they have created. Please add your specific issues to this blog discussion or Ron Margolis’ blog. He will be testifying next week as they called him in based on his disagreement with specific parts of the bill.
Tracy Stice
June 25, 2011
Heidi,
It is extremely important to contribute to this discussion with first hand information. The legislature is meeting next week to discuss what they have created. Please add your specific issues to this blog discussion or Ron Margolis’ blog. He will be testifying next week as they called him in based on his disagreement with specific parts of the bill.
Peter Klika
June 27, 2011
The market is at its bottom? We’ll see fewer REO’s on the market? Are you kidding? The national home sales market already dropped further since you made your “prediction”. Fewer REOs for sales because “savvy” investors snapped them up. Not really. Many lenders are not actively listing all their REOs because they have so many they actually drive prices down further by listing them all (simple supply and demand; more supply equals lower prices. The “savvy buyers in North Kohala are already regretting paying all cash for REOs that they can’t rent and where the market value has dropped further.
Your comments are a thinly disguised “Infomercial” for your company and akin to “It’s always a good time to buy from me” No, it is NOT a good time to buy from anyone.
Last, a simple question: Have you actually read all 90 pages of the foreclosure moratorium bill and understood each provision? Just a simple yes or no will do. Peter Klika, Esq, Kapaau, Hawaii
Peter Klika
June 27, 2011
The market is at its bottom? We’ll see fewer REO’s on the market? Are you kidding? The national home sales market already dropped further since you made your “prediction”. Fewer REOs for sales because “savvy” investors snapped them up. Not really. Many lenders are not actively listing all their REOs because they have so many they actually drive prices down further by listing them all (simple supply and demand; more supply equals lower prices. The “savvy buyers in North Kohala are already regretting paying all cash for REOs that they can’t rent and where the market value has dropped further.
Your comments are a thinly disguised “Infomercial” for your company and akin to “It’s always a good time to buy from me” No, it is NOT a good time to buy from anyone.
Last, a simple question: Have you actually read all 90 pages of the foreclosure moratorium bill and understood each provision? Just a simple yes or no will do. Peter Klika, Esq, Kapaau, Hawaii
Tracy Stice
June 27, 2011
Peter,
Yes , I read all ninety pages of the bill, and I do not understand all of the provisions. Perhaps you do , since you are an attorney. Every attorney I have spoken with admit to confusion with many parts of the bill.
I appreciate you comments, however one does not apply to the Hawaii market, you quote mainland values dropping since I wrote the blog a few days ago. The mainland does not have a one year moratorium on non-judicial foreclosures, they are still pouring in to the pipeline, so your simple ” supply and demand ” is not accurate for our new Hawaii picture.
You imply that lenders are holding inventory off the market in order to not further depress prices. Frankly , I agree with this this assumption, but how can you prove it? It implies some type of conspiracy by the lenders that most real estate agents suspect, but how do you get to the facts ? I know for a fact that one local lender is doing this, because you can check the public records for ownership.
Some of you other comments regarding my ” buy now ” statements can only be proven with time. At least I am basing my predictions on some form of logic, however flawed it may be. As far as hype, would you hire an agent to sell your property who would not promote it and not try to sell it? We don’t get paid an hourly fee, whether we win or loose. Billable hours are not part of our vocabulary.
Tracy Stice
June 27, 2011
Peter,
Yes , I read all ninety pages of the bill, and I do not understand all of the provisions. Perhaps you do , since you are an attorney. Every attorney I have spoken with admit to confusion with many parts of the bill.
I appreciate you comments, however one does not apply to the Hawaii market, you quote mainland values dropping since I wrote the blog a few days ago. The mainland does not have a one year moratorium on non-judicial foreclosures, they are still pouring in to the pipeline, so your simple ” supply and demand ” is not accurate for our new Hawaii picture.
You imply that lenders are holding inventory off the market in order to not further depress prices. Frankly , I agree with this this assumption, but how can you prove it? It implies some type of conspiracy by the lenders that most real estate agents suspect, but how do you get to the facts ? I know for a fact that one local lender is doing this, because you can check the public records for ownership.
Some of you other comments regarding my ” buy now ” statements can only be proven with time. At least I am basing my predictions on some form of logic, however flawed it may be. As far as hype, would you hire an agent to sell your property who would not promote it and not try to sell it? We don’t get paid an hourly fee, whether we win or loose. Billable hours are not part of our vocabulary.
E from Princeville
June 28, 2011
I found your blog re: the new Hawaii legislation to be very informative. When I saw my foreclosure had been “cancelled,” I needed some info. and this helped me out. If I lived on Maui I’d definitely work with you, but thanks for the referral!
E from Princeville
June 28, 2011
I found your blog re: the new Hawaii legislation to be very informative. When I saw my foreclosure had been “cancelled,” I needed some info. and this helped me out. If I lived on Maui I’d definitely work with you, but thanks for the referral!
Tracy Stice
June 28, 2011
Dear E,
I appreciate your comments and hope that the person I referred you to can help you with your situation on Kauai. We all need to work together to survive this mess.
Aloha, Tracy
Tracy Stice
June 28, 2011
Dear E,
I appreciate your comments and hope that the person I referred you to can help you with your situation on Kauai. We all need to work together to survive this mess.
Aloha, Tracy
Peter Klika
June 30, 2011
I appreciate your honesty even if we disagree. It is to your credit that you can look at the market objectively.One note: the market prices in Hawaii appear to be holding steady or actually rising because wealthy second home owners are dumping their homes to conserve cash. These upper end sales make the market look a lot healthier than it is. This is a good time to sit on the sidleines. Aloha. Peter Klika, Esq.
Peter Klika
June 30, 2011
I appreciate your honesty even if we disagree. It is to your credit that you can look at the market objectively.One note: the market prices in Hawaii appear to be holding steady or actually rising because wealthy second home owners are dumping their homes to conserve cash. These upper end sales make the market look a lot healthier than it is. This is a good time to sit on the sidleines. Aloha. Peter Klika, Esq.
Tracy Stice
July 1, 2011
Peter,
Part of the whole point of my blog is that this bill will create an even further distortion of the true market by holding inventory from the market. We have had a huge number of pre-foreclosure properties pulled from the food chain recently. I have been interviewing Maui agents who specialize in primarily B of A, Wells Fargo, and other large lenders. They are all going on vacation. This is going to push short term prices up. As you pointed out, supply and demand create a price function. Less inventory means higher prices are coming.
As to the high end, perhaps Maui is an anomaly, we keep keep getting closing after closing of high end cash buyers in the luxury market. These buyers either have a currency differential ( Canadians primarily) that makes our inventory a bargain, or they are cash heavy investors concerned about the lowering value of the dollar and the fundamental cost/reproduction of these prime location trophy properties. They have to put their dollars someplace because they earn nothing in the banks and are leery of the stock and bond markets.
Peter, what would you recommend people with cash do with their money ?
Tracy Stice
July 1, 2011
Peter,
Part of the whole point of my blog is that this bill will create an even further distortion of the true market by holding inventory from the market. We have had a huge number of pre-foreclosure properties pulled from the food chain recently. I have been interviewing Maui agents who specialize in primarily B of A, Wells Fargo, and other large lenders. They are all going on vacation. This is going to push short term prices up. As you pointed out, supply and demand create a price function. Less inventory means higher prices are coming.
As to the high end, perhaps Maui is an anomaly, we keep keep getting closing after closing of high end cash buyers in the luxury market. These buyers either have a currency differential ( Canadians primarily) that makes our inventory a bargain, or they are cash heavy investors concerned about the lowering value of the dollar and the fundamental cost/reproduction of these prime location trophy properties. They have to put their dollars someplace because they earn nothing in the banks and are leery of the stock and bond markets.
Peter, what would you recommend people with cash do with their money ?
Beth Thoma Robinson, R(B)
July 1, 2011
Tracy, you are absolutely correct about the point that lenders will “wake up to short sales”. As you know, Pam and I handle a relatively large number of short sale listings. It used to be we would be making monthly calls to plead for postponement of non-judicial foreclosures. Now, these are being cancelled altogether (and not only for primary homeowners)or when we check with the Trustee they simply respond that they expect it will be postponed (meaning they KNOW it will be).
I also think it is impossible to lump “Hawaii” as if we were one market or “Mainland” as if it was one market. Even here on the Big Island the mini-market dynamics are very different at the resorts, where as Tracy says we are seeing buyers who see today’s prices as a great opportunity, and where in some of our communities prices are definitely trending upward…and communities like Ainakea which is Peter’s frame of reference, where there are owners under water…and banks sitting on properties…but few buyers for them as these prices are perfect for first time buyers, but many of the homes have deferred maintenance or unpermitted construction which will make them difficult to finance.
Beth Thoma Robinson, R(B)
July 1, 2011
Tracy, you are absolutely correct about the point that lenders will “wake up to short sales”. As you know, Pam and I handle a relatively large number of short sale listings. It used to be we would be making monthly calls to plead for postponement of non-judicial foreclosures. Now, these are being cancelled altogether (and not only for primary homeowners)or when we check with the Trustee they simply respond that they expect it will be postponed (meaning they KNOW it will be).
I also think it is impossible to lump “Hawaii” as if we were one market or “Mainland” as if it was one market. Even here on the Big Island the mini-market dynamics are very different at the resorts, where as Tracy says we are seeing buyers who see today’s prices as a great opportunity, and where in some of our communities prices are definitely trending upward…and communities like Ainakea which is Peter’s frame of reference, where there are owners under water…and banks sitting on properties…but few buyers for them as these prices are perfect for first time buyers, but many of the homes have deferred maintenance or unpermitted construction which will make them difficult to finance.
Tracy Stice
July 1, 2011
Beth,
Thanks for your comments, now we all get to change our business plans for the upcoming year. What REO’s? Now we get to do lots of short sales with more motivated lenders.
One looming problem is the possible veto by Gov. Abercrombie of HB 320: http://www.hawaiilife.com/articles/2011/06/act-48-foreclosure-law/, which would allow a licensed real estate professionals to charge a fee for a broker price opinion to a lender. I have done over 200 BPO’s ( broker price opinions ) over the past 3 years, each taking 2 to 3 hours, and not charge a cent to the lender. If this bill passes, we can charge a nominal fee. If not, what broker is going to continue to provide this free service in hopes of getting an REO listing? NONE !
Tracy Stice
July 1, 2011
Beth,
Thanks for your comments, now we all get to change our business plans for the upcoming year. What REO’s? Now we get to do lots of short sales with more motivated lenders.
One looming problem is the possible veto by Gov. Abercrombie of HB 320: http://www.hawaiilife.com/articles/2011/06/act-48-foreclosure-law/, which would allow a licensed real estate professionals to charge a fee for a broker price opinion to a lender. I have done over 200 BPO’s ( broker price opinions ) over the past 3 years, each taking 2 to 3 hours, and not charge a cent to the lender. If this bill passes, we can charge a nominal fee. If not, what broker is going to continue to provide this free service in hopes of getting an REO listing? NONE !
Tracy Stice
July 1, 2011
I posted the incorrect link to the broker price opinion law. Please use this : http://www.capitol.hawaii.gov/session2011/bills/HB320_HD1_.pdf
Tracy Stice
July 1, 2011
I posted the incorrect link to the broker price opinion law. Please use this : http://www.capitol.hawaii.gov/session2011/bills/HB320_HD1_.pdf
Ron Margolis
July 3, 2011
Tracy,
Great blog post, and enjoyed reading the comments too including the attorney who you are in dialog with. Mostly i agree with all your points though I am unsure that the lack of REO inventory will drive up prices. Overall, at least on Kauai, there still is not enough “velocity” (buyer demand and activity) to offset the number of distressed listings and that includes REOs and short sales.
Yes, people have already started to call me, panicking in realizing that the cancellation of their non-judicial short sale may ultimately lead to a deficiency judgement of which the homeowners are quite afraid. When the Hawaiian banks do their judicial foreclosures, they have also been aggressive in pursuing judgements, and indeed, it has been costly to the distressed sellers.
At this weeks informational briefing, the consensus from the lawyers testifying was that Act 48 is too cumbersome and risky for the banks to pursue. My recommendation to the committee was to work with our Chief Justice, and have the judges make the first court order in a judicial proceeding a mandatory mediation (use the staff the DCCA is now spending $$$ on to create) and educate both the mediator/neutrals and the judges on the finer points of foreclosure defense, making sure they ask the foreclosing party for:the securitization information, polling
and servicing agreements, FWP (free writing
prospectus), the loan take, and all assignments and transfers. Without this process, there is little hope for the homeowner in a judicial foreclosure. And on the flip side, if the state of Hawaii becomes the nations expert in exposing the mistakes of the lenders, the judicial delays you describe can go on for many more years, arrghhh! Happy Independence Day, LOL.
Ron Margolis
July 3, 2011
Tracy,
Great blog post, and enjoyed reading the comments too including the attorney who you are in dialog with. Mostly i agree with all your points though I am unsure that the lack of REO inventory will drive up prices. Overall, at least on Kauai, there still is not enough “velocity” (buyer demand and activity) to offset the number of distressed listings and that includes REOs and short sales.
Yes, people have already started to call me, panicking in realizing that the cancellation of their non-judicial short sale may ultimately lead to a deficiency judgement of which the homeowners are quite afraid. When the Hawaiian banks do their judicial foreclosures, they have also been aggressive in pursuing judgements, and indeed, it has been costly to the distressed sellers.
At this weeks informational briefing, the consensus from the lawyers testifying was that Act 48 is too cumbersome and risky for the banks to pursue. My recommendation to the committee was to work with our Chief Justice, and have the judges make the first court order in a judicial proceeding a mandatory mediation (use the staff the DCCA is now spending $$$ on to create) and educate both the mediator/neutrals and the judges on the finer points of foreclosure defense, making sure they ask the foreclosing party for:the securitization information, polling
and servicing agreements, FWP (free writing
prospectus), the loan take, and all assignments and transfers. Without this process, there is little hope for the homeowner in a judicial foreclosure. And on the flip side, if the state of Hawaii becomes the nations expert in exposing the mistakes of the lenders, the judicial delays you describe can go on for many more years, arrghhh! Happy Independence Day, LOL.
Tracy Stice
July 3, 2011
Ron,
Ron,it would be great if you could elaborate a little on the points you made:
1) securitization information
2) loan take
3) FWP
4) assignments and transfers
5) polling and servicing agreements
I think a better description of each of these items would be very beneficial for all. Since you are truly an expert on this issues, please clue us in a little more, I would appreciate it.
Thank you for taking you time to attend the hearing. Dave DeLeon said you did a great job representing the agent in the trenches point of view and that you brought some issues to the table that had not been well vetted in the legislative drafting process.
Tracy Stice
July 3, 2011
Ron,
Ron,it would be great if you could elaborate a little on the points you made:
1) securitization information
2) loan take
3) FWP
4) assignments and transfers
5) polling and servicing agreements
I think a better description of each of these items would be very beneficial for all. Since you are truly an expert on this issues, please clue us in a little more, I would appreciate it.
Thank you for taking you time to attend the hearing. Dave DeLeon said you did a great job representing the agent in the trenches point of view and that you brought some issues to the table that had not been well vetted in the legislative drafting process.
Katie Minkus, R(BIC)
July 8, 2011
Aloha Tracy. TG did an informational “seminar” on Act 48 on Wednesday afternoon in Waimea on the Big Island and one of the points made I thought you might find interesting is that currently Judicial Foreclosures take roughly 1.5 years to get through the system. Now, with Act 48 – they expect the time it takes one property to get through judicial foreclosure to be somewhere from 4-5 YEARS. So, that means that conceivably an owner could not pay any mortgage but live in their home for 4-5 years before suffering any consequences. It got me thinking that we’re going to start seeing a lot more strategic defaults here in Hawaii, adding to the mess.
Conversely, I also had the quite serious revelation that if prices do indeed start to rise in some of these markets, it’s entirely possible that some homeowners stuck in a 5-year process of judicial foreclosure, might actually have an opportunity at some point during those 5 years to sell their property at a price that satisfies their lien, instead of going through foreclosure or a short sale.
Hmmm… now, where’s that crystal ball, again? Would so like to peer into the future… Without a doubt, these are most interesting times.
Katie Minkus, R(BIC)
July 8, 2011
Aloha Tracy. TG did an informational “seminar” on Act 48 on Wednesday afternoon in Waimea on the Big Island and one of the points made I thought you might find interesting is that currently Judicial Foreclosures take roughly 1.5 years to get through the system. Now, with Act 48 – they expect the time it takes one property to get through judicial foreclosure to be somewhere from 4-5 YEARS. So, that means that conceivably an owner could not pay any mortgage but live in their home for 4-5 years before suffering any consequences. It got me thinking that we’re going to start seeing a lot more strategic defaults here in Hawaii, adding to the mess.
Conversely, I also had the quite serious revelation that if prices do indeed start to rise in some of these markets, it’s entirely possible that some homeowners stuck in a 5-year process of judicial foreclosure, might actually have an opportunity at some point during those 5 years to sell their property at a price that satisfies their lien, instead of going through foreclosure or a short sale.
Hmmm… now, where’s that crystal ball, again? Would so like to peer into the future… Without a doubt, these are most interesting times.
Tracy Stice
July 8, 2011
Katie,
With Freddie Mac now going judicial on top of Fannie Mae, the mess just get worse for the court system. Maybe pretty soon Hawaii will be like New York State with a 62 year backlog for their foreclosures since they are a purely judicial foreclosure state.
Roz Baker needs to jump on this now and figure out a way to bring back every retired circuit court judge willing to work to start handling the case load. Imagine if you have a criminal proceeding being set aside because of this increased case load. Courts have to give precedence to criminal cases for due process reasons, but this situation is not going to help anything.
Tracy Stice
July 8, 2011
Katie,
With Freddie Mac now going judicial on top of Fannie Mae, the mess just get worse for the court system. Maybe pretty soon Hawaii will be like New York State with a 62 year backlog for their foreclosures since they are a purely judicial foreclosure state.
Roz Baker needs to jump on this now and figure out a way to bring back every retired circuit court judge willing to work to start handling the case load. Imagine if you have a criminal proceeding being set aside because of this increased case load. Courts have to give precedence to criminal cases for due process reasons, but this situation is not going to help anything.
Ahuva
July 15, 2011
Great, informative article, especially for property owners not familiar with the intricacies of real estate/foreclosure laws in Hawaii. It’s good to read how you foresee the value of homes and the clogging of the courts as a result of this act.
Ahuva
July 15, 2011
Great, informative article, especially for property owners not familiar with the intricacies of real estate/foreclosure laws in Hawaii. It’s good to read how you foresee the value of homes and the clogging of the courts as a result of this act.
Kristi Gacayan
September 17, 2012
Aloha,
I requested a loan Mod to reduce our 6.5%. We got a month behind on our payment but caught up quickly. We are current now. Please know we were never even 45 days late. BofA is still sending us letters of intent to forclose. We were denied a Mod and now they want to forclose. I told them our finances have not changed and we would like to continue paying our mortgage and live in our home. If they start refusing payments. What is the next step? How will this new law help us. We want to pay and stay.
Kristi Gacayan
September 17, 2012
Aloha,
I requested a loan Mod to reduce our 6.5%. We got a month behind on our payment but caught up quickly. We are current now. Please know we were never even 45 days late. BofA is still sending us letters of intent to forclose. We were denied a Mod and now they want to forclose. I told them our finances have not changed and we would like to continue paying our mortgage and live in our home. If they start refusing payments. What is the next step? How will this new law help us. We want to pay and stay.
Ron
September 17, 2012
Kristi,
Pls gimme a call, thx
Ron
September 17, 2012
Kristi,
Pls gimme a call, thx
Tracy Stice
September 18, 2012
Kristi,
Bank of America is about as messed up as a company can get. Keep making your payments. The last thing they are going to do is to foreclose. They have loans that have not paid for over 2 years and they still have not foreclosed. ( I know this from first hand accounts ). One late payment should not have destroyed your credit. As long as you have decent credit, you should talk to some other lenders. It may be possible that you are upside down still on equity vs. current market value, but we are seeing values increase in some areas. It would be a good idea to know exactly what to do to qualify for a re-finance as soon as both your and your property qualifies.
Tracy Stice
September 18, 2012
Kristi,
Bank of America is about as messed up as a company can get. Keep making your payments. The last thing they are going to do is to foreclose. They have loans that have not paid for over 2 years and they still have not foreclosed. ( I know this from first hand accounts ). One late payment should not have destroyed your credit. As long as you have decent credit, you should talk to some other lenders. It may be possible that you are upside down still on equity vs. current market value, but we are seeing values increase in some areas. It would be a good idea to know exactly what to do to qualify for a re-finance as soon as both your and your property qualifies.
Tracy Stice
January 16, 2013
I should change careers. For once, one of my predictions have come forward exactly as I predicted. Prices are going up, primarily on the low end of the market and we are experiencing multiple bids. ( I had nine offers , all full price and over last month on a Pukalani, Maui house that we listed at $425,000 )
Inventory has dried up because of Act. 48. The addition of two clauses under Act 182 which was passed in the 2012 session have added additional complications. These state ” “§667-O Attorney affirmation in judicial foreclosure. Any attorney who files on behalf of a mortgagee seeking to foreclose on a residential property under this part shall sign and submit an affirmation that the attorney has verified the accuracy of the documents submitted, under penalty of perjury and subject to applicable rules of professional conduct.
Under part 667 – 1 “Definitions” … “Residential property” means real property that is improved and used for residential purposes.
§667-P Attorney affirmation in judicial foreclosure. An attorney who files a complaint in a mortgage foreclosure action shall affirm in writing, under penalty of perjury, that to the best of the attorney’s knowledge, information, and belief the allegations contained in the complaint are warranted by existing law and have evidentiary support.
How many Hawaii attorneys are going to take low paying judicial foreclosures, fight for a court date that is continually set aside for murders, rapes, assaults, and then face perjury when they have to affirm the legitimacy of the mortgage note, signatures and other documents presented to them ?
Tracy Stice
January 16, 2013
I should change careers. For once, one of my predictions have come forward exactly as I predicted. Prices are going up, primarily on the low end of the market and we are experiencing multiple bids. ( I had nine offers , all full price and over last month on a Pukalani, Maui house that we listed at $425,000 )
Inventory has dried up because of Act. 48. The addition of two clauses under Act 182 which was passed in the 2012 session have added additional complications. These state ” “§667-O Attorney affirmation in judicial foreclosure. Any attorney who files on behalf of a mortgagee seeking to foreclose on a residential property under this part shall sign and submit an affirmation that the attorney has verified the accuracy of the documents submitted, under penalty of perjury and subject to applicable rules of professional conduct.
Under part 667 – 1 “Definitions” … “Residential property” means real property that is improved and used for residential purposes.
§667-P Attorney affirmation in judicial foreclosure. An attorney who files a complaint in a mortgage foreclosure action shall affirm in writing, under penalty of perjury, that to the best of the attorney’s knowledge, information, and belief the allegations contained in the complaint are warranted by existing law and have evidentiary support.
How many Hawaii attorneys are going to take low paying judicial foreclosures, fight for a court date that is continually set aside for murders, rapes, assaults, and then face perjury when they have to affirm the legitimacy of the mortgage note, signatures and other documents presented to them ?
AHUVA
January 16, 2013
I’m on my 6th Loan Mod. Just evicted a Tenant-from-Hell, who is a career squater who found another landlord-victim in west Oahu after I had him locked out. . He set me back thousands and I have no idea how i’ll catch up.
If Hawaii gets to handle Fannie M/Freddie-M loans , I Ihope my bank will modify the loan before the Hawaii court gets to me.
Question :is there any point in modifying my loan with another institution? Anybody know?
AHUVA
January 16, 2013
I’m on my 6th Loan Mod. Just evicted a Tenant-from-Hell, who is a career squater who found another landlord-victim in west Oahu after I had him locked out. . He set me back thousands and I have no idea how i’ll catch up.
If Hawaii gets to handle Fannie M/Freddie-M loans , I Ihope my bank will modify the loan before the Hawaii court gets to me.
Question :is there any point in modifying my loan with another institution? Anybody know?