Maui Foreclosures (Update – April 15, 2010)

Want to make a worthwhile investment? The Stice Team recommends investing in a Maui Foreclosure

Here is today’s list of Active:

Maui foreclosure homes | Maui foreclosure condos | Maui vacant land foreclosures

Of the 29 Maui closings (homes, land, and condos) that recorded today:

• 3 were short sales (pre-forceclosures).
• There were 5 REO (Real Estate Owned) foreclosures.
• 9 of the properties that sold were “new development offerings.”

This translates to 8 of the 20 or 40% of the resale properties sold today were either short sales or REO properties.

Maui REO with 2 ohana units listed at $395,000 (MLS# 342660)

You will note that the majority of these sales are at the entry level price point for Maui. According to our latest local board statistics, $469,000 is the median* value for a residential home down 16% from this point last year which was at $520,000. The current median value for an individual condominium unit is $426,000 down 39% from last year’s median of $700,000.

Today, there were:

• 6 new pre-foreclosure listings.
• 2 new REO listings.
• 1 Wailuku Condo Foreclosure.
• 1 Kihei Home Foreclosure.

With the sale of any foreclosure or REO property, there is tremendous loss on the part of the previous homeowner. My heart goes out to these individuals and I deeply feel for their loss and I hope that their fortune is better served in the future. On the flip side, there is tremendous gain for the new owner purchasing the home because in almost all instances, the buyer is purchasing the property for as much as 50% below what the previous owner paid and in some instances Hundreds of Thousands Dollars less than what the bank just paid for the property at auction.

Did you just say what the bank paid for the property at auction? Yes I did. In most instances when a homeowner becomes delinquent in his/her mortgage payments he or she will offer the home as a short sale (pre-foreclosure), this occurs when the outstanding loan balance on the home exceeds the current market value of the home. The homeowner typically enlists a Brokerage Firm like, Hawaii Life Real Estate Services and an agent like The Stice Team to help them sell the property, and to help them negotiate the financial ramifications with the bank(s) that held the loan(s). If a short sale proves unsuccessful, or if the owner does not pursue this process, the property goes to a public auction. What many individuals do not understand is that in order to secure these properties an auction, one needs to have a substantial cash deposit on the spot and to pay for the property in cash in full shortly thereafter. The strategy that many banks employ is to outbid all other individuals on a property that they have an outstanding loan on because in order for the financial institution to actually write the loss off on their books they have to first retain the asset in their portfolio and then sell the property as a REO type property where in many instances they take a large financial loss but they do it for accounting and tax purposes.

This is where your opportunity comes in. You may purchase a REO property with as little as 3.5% down payment.

If you are interested in learning more about securing a fantastic investment here on Maui you will most likely find it to be a pre-foreclosure or a foreclosure.The Stice Team has represented countless satisfied buyers on these types of properties in the recent past and we would like to use our expertise and calculated strategy to help you secure one of these as well.

These properties sell very quickly, what are you waiting for?

*I like to utilize the median figure rather than the average because average numbers are more heavily skewed by a select group of very high or very low sales figures as opposed to the median which just takes the middle number in the range of values.