Posted by jay on November 08, 2006 at 19:32:04:
a possibility. how do i contact you?
HAWAII HOUSE UPSIDE DOWN - Posted by JAY
Posted by JAY on October 26, 2006 at 22:12:01:
HOME ON KONA, TRASHED BY RENTER, SOME EARTHQUAKE DAMAGE, NOW EMPTY. I AM PAYING $3000 PAYMENTS. OWE $380,000, WORTH $430,000 AFTER FIXUP OF MAYBE $15-20,000 WHICH I DON’T HAVE AND THE COST TO SELL IT. PLANNING TO OFFER A SHORT SELL TO MY LENDER. ANY OTHER IDEAS FROM INVESTORS IN HAWAII?
Re: HAWAII HOUSE UPSIDE DOWN - Posted by Rich
Posted by Rich on October 31, 2006 at 24:15:42:
First, a “short sale” is a sale. That means there has to be a buyer.
Second. I assume you did not have earthquake insurance. Most hazard policies specifically exclude all forms of earth movement (mud slides, earthquakes and so on). I’m in CA where we only have earthquake insurance available because the state requires it be offered.
Third. Get the collections people after the tenants ASAP. You will need to support all charges against the tenant. I assume you can separate out the earthquake damage from the tenant’s vandalism.
Re: HAWAII HOUSE UPSIDE DOWN - Posted by Wayne-NC
Posted by Wayne-NC on October 30, 2006 at 16:31:20:
Will the dwelling insurance cover any of the earthquake damage damage? Any state relief funds avilable? Kick the tenant in the Kamaniena Achole! (Please forgive me in my Hawaiian spelling)
Deed in Lieu - Posted by Dan (NY)
Posted by Dan (NY) on October 28, 2006 at 13:00:59:
As owner of the property you will not be able to arrange a “short sale” termination of the loan. However, you might be able to arrange a “deed transfer in lieu of foreclosure”. In effect, you will be giving the title of the house over to the bank, the loan is satisfied and you (hopefully) save your credit rating.
If house values are in decline in Hawaii, you might want to ask about this option ASAP.
Good luck! -Dan
Re: HAWAII HOUSE UPSIDE DOWN - Posted by christine.mendenhall
Posted by christine.mendenhall on October 27, 2006 at 23:51:15:
It is my experience that the lender will not do a short with the home owner, unless you are selling it to a third party unrelated to you, and that’s not just a statement of blood relation any kind of relation and they will not deal. Nor will they deal if you’re not behind.
I thought all the ideas were good and I thought I would add this, if possible, refi, get the money to fix and then list on rental website such as
http://www.hawaii-kona.com/rental-properties/-homes.html
or the like, there are plenty out there.
In this instance you’ll be renting to families on vacation, less likly to trash what you had to rebuild. The rentals on this site were going for a good dollar amount and may, either make your payment all together or at least help fray some of the costs until a better play comes along.
If you would rather get rid of it. then go with the “market the hell out of it” technique, surely you’ll find someone who will either short the sale with your bank for themselves or just buy you out. There is such a thing as a “deficiency balance,” that’s when the bank takes less then what’s owed and sends you and the IRS a W2 for the difference. I usually get the bank to either forgive the debt or, in instances when that has not worked I have been able to get the bank and client to agree on a number that the client can pay back at 0% interest over a period of time.
C
Re: HAWAII HOUSE UPSIDE DOWN - Posted by dennis
Posted by dennis on October 27, 2006 at 18:26:47:
I would just like to know what part of kona you live in because i live in kona also. I know a few handymen that may can help you .I was a little confused. I didnt think you could do a ‘short sale’ to a lender if you are the owner and you are current on your payments. but i could be wrong!!! I am a painter so if you need my services maybe we can work something out that would be good for both of us so your house can get back in rentable shape.ALOHA
Re: HAWAII HOUSE UPSIDE DOWN - Posted by Gene
Posted by Gene on October 27, 2006 at 14:27:52:
I would do some homework in regards to short sale. I have read that the barrower may have to pay income tax on the diffrence.
What ever you do…I would stop the bleeding. Unless you can get more than 3k a month in rent…Its not worth holding on. The market isn’t doing good. Your not going to get any appreciation.
Re: HAWAII HOUSE UPSIDE DOWN - Posted by Carlos (VA)
Posted by Carlos (VA) on October 27, 2006 at 06:45:37:
If your #'s are correct, there’s not a whole lot to work with. Here are some ideas:
-
Fix what you can and rent to a handyman at a reduced price. This isn’t a perfect solution, but if you can get close to the $3k per month, you can slow down the hemorrhaging. The added benefit is that he would fix the place. In order to get the lower rent amt, work has to be done.
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Lease option. Get as much down as possible and use that to fix up the property.
-
Local REIa. Make up some flyers and get it in the hands of every Investor that you know. Market the crap out of it. If you just want out. An investor may take it off your hands for a few thousand dollars. Make sure that you have REALLY GOOD NUMBERS.
Re: HAWAII HOUSE UPSIDE DOWN - Posted by Greg (FL)
Posted by Greg (FL) on October 26, 2006 at 23:51:51:
Jay,
I didn’t see anybody else responding, so I’ll jump in with something.
First thing:
- Have you kicked that renter’s a$$ (financially)??
If not, they need it. Years ago, I used to go to my local REIA meetings and be taken back by what I considered the experienced, older, crusty landlords’ statements about how they were going to turn the screws on some (what I considered at the time) some poor, struggling tenant. I know now from whence they were speaking.
Make sure you cover yourself, but also make sure you keep all these deadbeats’ security deposit. And, see if you can get a judgement against them. Attach to their SS# (you did get that up front??).
Second:
I’m sure there are MANY here that know a LOT more about short sales than I. But, I don’t think you can negotiate a short sale directly with the bank if you are the mortgagee.
Maybe my reply will generate some response from someone else who can contribute, also.
Best wishes,
Greg(FL)
Re: HAWAII HOUSE UPSIDE DOWN - Posted by JAY
Posted by JAY on October 30, 2006 at 20:09:31:
NOT SURE ABOUT DWELLING INSURANCE. FUNDS ONLY AVAILABLE TO OWNER/OCCUPANT. BEST OFFER I HAVE HAD YET IS TO SELL AS IS AND PRESENT THE OFFER TO MY BANK AS A SHORT SALE. IT MAY BRING $350,000