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This site provides information about Short Sale in Hawaii. A Short Sale is not a Distressed Property and is not a subject to Act 137, a Short Sale is a "red flag" that the property may become "Distressed Property" at some point in the future. A Short Sale is a new product for the market which slowing or smoothing the Hawaii real estate market. Despite the economical and financial crisis, Hawaii's delinquency rate remains one of lowest in the Nation because Hawaii has one of the lowest unemployment rate in the USA and there is a strong military construction development which will be supported for next 25-50 years. If you have any questions during or after reviewing this page, please do not hesitate to contact me for more information. Mahalo!
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Such sales — where a home is sold for less than a seller's mortgage and the
deficiency is forgiven are helping dramatically higher numbers of financially
struggling homeowners avoid credit-wrecking foreclosure.
The transactions are also providing good deals for buyers, are helping
Short Sale experts say lenders are swamped by borrowers trying to sell their
homes before foreclosure, though many lenders are trying to add staff to better
facilitate Short Sales. minimize loan losses and are reducing the number of vacant foreclosed
homes that can negatively affect neighborhoods.
A short while ago, these deals alternatively known as pre-foreclosure sales
were virtually unheard of in Hawaii's moderately stable housing market. But not
now. I
In 2006, there were 13 Short Sales on Oahu, followed by a modest rise to 47
the next year.
Last year, buyers purchased 194 Short Sale homes. Last week, there were close to 500 homes listed for sale on Oahu as Short
Sales, representing about 9 percent of the inventory, or one out of every 11
homes on the market....
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A Short Sale occurs when the sales proceed of a sale are insufficient to cover the pay off of the mortgage, any secondary loan, any lien, any commissions, or any related taxes or closing costs related to the sale. Upon final approval, a short sale can help home owner avoid further collection activity or foreclosure action.
How to get started a Short Sale?
When the owner feels the first signs of financial problems with the property, he or she has immediately contact the lender. Homeowners is required to call the Short Sale Lender's Loss Mitigation Team. Financial information is reviewed and pre-foreclosure sale counseling is completed.
The documents Required to Begin a Short Sale Application
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Signed and dated financial worksheet listing all monthly expenses
- Signed and dated hardship letter with explanation why they are unable to pay mortgage
Letter authorizing the REALTOR® access to information on the account. It must be dated and include last four digits of the borrower's Social Security Number, their Signature, the full account number and the property address.
Wells Fargo Home Mortgage estimated timeline based on business days and assuming all documents are submitted in completed form and timely.
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Event
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Timeline
(Business Days)
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Total Process
(Business Days)
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Complete Short Sale application received Short Sale application activated Complete application assigned to negotiator Incomplete application will delay process
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3
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3
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5
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8
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10-17
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25
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Additional Steps:
Mortgage insured approval Investor approval Additional liens negotiated by REALTOR® A completed net sheet/HUD Fully executed Purchase Contract with all pages initialed by Buyer(s) and Seller(s) Buyer pre-qualification letter or proof of funds if cash offer
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10
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35
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All items above complete:
- Application decision
- Decision letters issued
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2
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37
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A Short Sale approval is good for 30 days. If closing does not occur within this time, the entire Short Sale package may need to be re-submitted with updated information, or the approval process may need to start over REALTOR® or homeowner inquires should be directed to the negotiator assigned to the file, whose information will be communicated during the introduction call REALTOR® are generally allowed 5% to 6% brokerage fees based investor rules. If dual agency applies, maximum brokerage fees is 5%, Some investors operate on a reduce commission structure and the actual commission schedule can be confirmed during the introduction call This must be an "arms-length" transaction. The property may not be sold to anyone the seller has a close personal or business relationship with including family, friends, or neighbors - During the introduction call the following will be addressed:
- Brokerage fees
- Fees and costs
- Pricing of the property
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Timeline
In order to reduce the 37 days response time the liquidation team is strongly recommending the homeowner and/or REALTOR® notify Wells Fargo Home Mortgage of their intention to sell their property as soon as the listing contract is signed. This will allow Wells Fargo to complete the property valuation and borrower financial evaluation prior to receiving an offer. The significantly reduces the Short Sale decision time on a submitted offer. In some cases investors and/or PMI companies require the mortgagers to sign an unsecured note for some or all of the difference between the net sales proceed from the sale and the total amount due. This is communicated as part of the response on a Short Sale offer.
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For more information use for example, Wells Fargo Home Mortgage Liquidation Contact Numbers
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Loss Mitigation Phone Team: - (866) 903-1053
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Loss Mitigation Setup Fax: (866) 359-1975
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Please contact me with any questions
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