What is a Short Sale?

According to wikipedia.

A short sale is a sale of real estate in which the sale proceeds fall short of the balance owed on the property's loan.^[1] It often occurs when a borrower cannot pay the mortgage loan on their property, but the lender decides that selling the property at a moderate loss is better than pressing the current debtor. Both parties consent to the short sale process, because it allows them to avoid foreclosure, which involves hefty fees for the bank and poorer credit report outcomes for the borrower.

Process

In a short sale, the bank or mortgage lender agrees to discount a loan balance because of an economic or financial hardship on the part of the borrower. The home owner/debtor sells the mortgaged property for less than the outstanding balance of the loan, and turns over the proceeds of the sale to the lender. Neither side is "doing the other a favor;" a short sale is simply the most economical solution to a problem. Banks will incur a smaller financial loss than foreclosure or continued non-payment would entail. Borrowers are able to mitigate damage to their credit history, and partially control the debt. A short sale is typically faster and less expensive than a foreclosure. It does not extinguish the remaining balance unless settlement is clearly indicated on the acceptance of offer.

Lenders often have loss mitigation departments that evaluate potential short sale transactions. The majority have a pre-determined criteria for such transactions, but they may be open to offers, and their willingness varies. A bank will typically determine the amount of equity (or lack thereof), by determining the probable selling price from an appraisal or Broker Price Opinion (abbreviated BPO or BOV).

Lenders may accept short sale offers or requests for short sales even if a Notice of Default has not been issued or recorded with the locality where the property is located. Given the unprecedented and overwhelming number of losses that mortgage lenders have suffered from the 2009 foreclosure crisis, they are now more willing to accept short sales than ever before. This presents an opportunity for "under-water" borrowers who owe more on their mortgage than their property is worth and are having trouble selling to avoid foreclosure as a result.

Additional parties

Multiple levels of approvals and conditions are very common with short sales. Junior lien-holders - such as second mortgages, HELOC lenders, and HOA (special assessment liens) - may need to approve the short sale. Frequent objectors to short sales include tax lien holders (income, estate or corporate franchise tax - as opposed to real property taxes, which have priority even when unrecorded) and mechanic's lien holders. It is possible for junior lien holders to prevent the short sale. If the lender required mortgage insurance on the loan, the insurer will likely also be party to negotiations as they may be asked to pay out a claim to offset the lender's loss in the short sale. The wide array of parties, parameters and processes involved in a short sale makes it a relatively complex and highly specialized type of real estate transaction. Unsurprisingly, short sale deals have a high failure rate and often do not close in time to prevent foreclosure when they are not handled by a knowledgeable and experienced professional. The best sources of knowledge and expertise in short sales are short sale negotiators, loss mitigation specialists, and real estate lawyers who specialize in short sale.

Consent

Short sales are different from foreclosures in that a foreclosure is forced by a lender, whereas both lender and borrower consent to a short sale. However, this consent may change at any time, and negotiations may be ongoing between the lender and borrower even while the short sale is on the market. The borrower may decide to remain and refinance their house, or become obstinate and force foreclosure. The bank may renege as well if they decide to stick with the current borrower, or if they disapprove of the sale price. Any short sale contract includes a contingency where the bank must approve the sale.

Changing consent can present a perilous situation for potential buyers. It can waste considerable time and money for a prospective buyer who anticipated a sale. Typically, deposits with the bank will be refunded but money for paid inspections or other services cannot be.

There are several defenses against this. If the seller has moved out of a property, that is a clue that they have no intention of staying or negotiating further with the bank. "Bank Approved Short Sales" are advertised by real estate advertisements, indicating that a real estate broker has verified the selling bank's position. This still does not guarantee acceptance, and it often does not take junior lien-holders into account, but it is better than situations where the bank holding the mortgage has only been lightly involved in the borrower's decision.

Credit implications

Short sales are a type of settlement, and they adversely affect a person's credit report, though the negative impact is typically less than a foreclosure. Like all entries except for bankruptcy, short sales remain on a credit report for seven years. Depending upon other credit information, it is typically possible to obtain another mortgage 1-3 years after a short sale.^{[citation needed]}

While lenders sometimes forgive the remaining loan balance, other lien-holders likely will not. Further, it is common for a lender to omit updating mortgage balances zero balance after a short sale. However, willfully misrepresenting information on a credit report can constitute libel in some jurisdictions, and lenders may be sued in civil court for engaging in this behavior.^{[citation needed]}

Business

Short sales are common in standard business transactions in recognition that creditors are not doing debtors a favor but, rather, engaging in a business transaction when extending credit. When it makes no business sense or is economically not feasible to retain an asset, businesses default on their loans (called bonds). It is not uncommon for business bonds to trade on the after-market for a small fraction of their face value in realization of the likelihood of these future defaults.

See also

• Mortgage Forgiveness Debt Relief Act of 2007 - U. S. legislation affecting short sales of residential property.
• Deed in lieu of foreclosure

Extending Homebuyer Tax Credit Best Tool for Sustaining Maui, "Valley Isle"  Housing Recovery

The best available tool for sustaining the still-fragile Kihei, Kahului, Wailuku, Wailea and Lahaina housing market is the $8,000 homebuyer tax credit, and it is essential that Congress extend the credit into 2010, the National Association of Realtors (NAR) testified at a hearing of the U.S. House Small Business Committee in October. Keywords, extending, homebuyer, tax, credit, housing, recovery, maui, hawaii, island, real, estate.

It’s increasingly likely that Congress will extend and expand the popular home buyer tax credit, which will expire at the end of this month.

NAR Regional Vice President Joseph L. Canfora, also told the panel that a major stumbling block for consumers has been the implementation of appraisal processes spurred by the Home Valuation Code of Conduct (HVCC), which is causing delays in closings, as well as cancelled sales that led to artificially low existing-home sales numbers for August, reported last month.

"The credit is working," Canfora said, pointing out that the 355,000 to 400,000 transactions directly attributable to the credit made a significant dent in the housing inventory and will help to stabilize home prices. Further, the credit has provided a huge indirect benefit to local governments, shoring up property tax bases in particularly hard-hit areas.

Further, NAR data has estimated that every home purchase pumps into the recovering economy about $63,000 – the equivalent of one new job added to the employment figures.

But, Canfora said, the threat of more foreclosures coming to the market caused by mortgage rate resets, job losses, and by lender’s unburdening themselves of additional properties to take advantage of today’s more stabilized prices could disrupt the fragile recovery.

In a "normal" market, optimal housing inventory is about six to seven months, he said. When the tax credit was enacted in February, inventory was 9.1 months. Because of the spurt in homes sales since then due to the tax credit, inventory declined to 8.2 months in August, closer to "normal" than at any time since 2007.

In urging Congress to extend the credit, Canfora said, "The more robust the credit and the greater its duration, the greater the chance that the housing market can perform its traditional role of helping the economy move out of a recession."

"But problems arising from the implementation of the HVCC may reverse the market’s positive momentum at a time when the real estate industry is just starting to show signs of a rebound in many markets," Canfora said. According to an NAR survey of its members, approximately 40 percent of Realtors report having lost at least one sale since May 1 because of appraisal problems due to the HVCC rules. Twenty percent say they have lost more than one sale.

The culprit, he said, was that appraisal management companies, which have gained prominence because of the HVCC, have assigned appraisers to areas where they lack geographic competence. That has resulted in unreliable appraisals. It is not uncommon that second and third appraisals have to be done to ascertain fair market value. Appraisal fees have also risen and are being passed on to consumers.

Both Fannie Mae and Freddie Mac have issued guidance on appraisals, but NAR is calling upon the mortgage giants and the Federal Housing Administration to issue a consolidated guidance that should be codified and incorporated into the existing policy to ensure proper information on appraisals is available to the real estate industry.

FHA Commissioner David H. Stevens has asked FHA staff to explore that recommendation with Fannie and Freddie. Last month, Stevens reaffirmed FHA appraisal policy, taking into consideration the unintended consequences that have burdened Fannie and Freddie, and issued two Mortgagee Letters focusing on appraisal changes. The policy reaffirms appraiser independence and geographic competence.

The FHA announcement also included timely steps to protect taxpayers: implementing credit policy changes to enhance risk management; hiring a chief risk officer for the first time in the agency’s history; and shifting responsibility for mortgage brokers away from taxpayers to the lenders who use mortgage brokers in Kihei, Kahului, Wailuku, Wailea and Lahaina.

Canfora told the committee that FHA has performed remarkably well through the housing crises, compared to Fannie and Freddie. "That’s because FHA has never strayed from the sound underwriting and appropriate appraisals that have traditionally backed up their loans."

"The reason the FHA capital reserve ratio fell below 2 percent had nothing to do with FHA’s current business activities. It is simply a reflection of falling housing values in their portfolio." He cited an FHA announcement that a 2009 audit will show that even if FHA does nothing, the cap reserves are expected to rise back to that required level within a few years. He also pointed out that FHA total reserves are not in as dire straits as some have reported since the cap reserve fund is not the only FHA reserve fund – FHA also has a separate cash reserve that is higher that it has even been – and the combined assets total $30.4 billion.

extending, homebuyer, tax, credit, housing, recovery, maui, hawaii, island, real, estate

Maui leads in foreclosures for the state of Hawaii

RealtyTrac ranks Hawaii 15th among states for overall foreclosure activity

By Allison Schaefers

POSTED: 01:30 a.m. HST, Oct 15, 2009

Maui's foreclosure rate surpassed the national level in September and activity on Maui and Kauai overtook the nation during the third quarter, according to data released today from RealtyTrac.

Last month, RealtyTrac ranked Hawaii 15th among states for foreclosure activity. Across the state, 969 properties -- the second-highest number of the year -- received foreclosure notices.

The number of foreclosures rose nearly 12 percent from the previous month and 63.1 percent from the same month last year.

On a whole, Hawaii's September foreclosure rate, one per every 523 households, was better than the national foreclosure rate of one in every 372 households, Blomquist said. However, Maui's foreclosure rate rose to one per every 255 households, he said.

On a quarterly basis, Hawaii's foreclosure rate was one in every 185 households, which compared favorably to a national rate of one per every 136 households, Blomquist said. Nonetheless, foreclosure rates on Maui, which rose to one per every 111 households, and on Kauai, which rose to one in every 85 households, raised alarm, he said.

"To me, it's a sign that the national problem is becoming Hawaii's problem and that it's not limited to the mainland," Blomquist said

One of the reasons for the gain could be Hawaii's high percentage of second-home, resort and investment activity, Blomquist said. As many as 46 percent of all Hawaii foreclosures through April, the most recent measure, were at non-owner-occupied properties, he said.

"That's higher than the national average," he said, adding that 30 percent of foreclosures nationwide through April involved non-owner-occupied properties.

Investor activity was plentiful when Maui's median price shot above $700,000 during Hawaii's last housing boom, said Keone Ball, principal broker at Carol Ball & Associates in Kahului, which RealtyTrac ranked No. 8 among Hawaii ZIP codes for the most foreclosure activity in September.

Kihei, Lahaina and Wailuku were also in RealtyTrac's top 10 list of high-foreclosure ZIP codes.

"Since Maui's median price led at the peak, it only makes sense that it would be highest among foreclosure rates as loans come due and people continue to lose jobs," Ball said, adding that investor activity has fallen by more than 30 percent since the boom.

Still, RealtyTrac data show that growing foreclosures are not just contained to Maui or Kauai. Blomquist and other real estate watchers say Hawaii foreclosures will continue to increase as home equity falls, unemployment rises, loans are reset, and lenders fail to promptly approve short sales and modifications.

"There are so many things pointing to continued high levels of foreclosures," Blomquist said.

The rise in foreclosures is lowering Hawaii's real estate values, prompting more problems, said John Riggins, owner of John Riggins Real Estate in Kapolei, a region that ranked No. 5 on RealtyTrac's September list of high foreclosure ZIP codes.

"As neighborhood prices drop, some sellers will be forced into short sales or foreclosures," Riggins said. "The problem is self-perpetuating."

Maui's foreclosure rate surpassed the national level in September and activity on Maui and Kauai overtook the nation during the third quarter, according to data released today from RealtyTrac.

GEORGE F. LEE / GLEE@STARBULLETIN.COM

John Riggins Real Estate is a business that deals in distressed properties. One of Riggins' clients, a military couple, has had to put their home on the market as a short sale so that they are eligible to relocate.

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Last month, RealtyTrac ranked Hawaii 15th among states for foreclosure activity. Across the state, 969 properties -- the second-highest number of the year -- received foreclosure notices.

The number of foreclosures rose nearly 12 percent from the previous month and 63.1 percent from the same month last year.

For those that thought Hawaii had skipped the ramp-up of foreclosures that has plagued the U.S. mainland for a couple of years, the latest statistics tell another story, said Daren Blomquist, communications manager for RealtyTrac, a foreclosure marketplace.

On a whole, Hawaii's September foreclosure rate, one per every 523 households, was better than the national foreclosure rate of one in every 372 households, Blomquist said. However, Maui's foreclosure rate rose to one per every 255 households, he said.

On a quarterly basis, Hawaii's foreclosure rate was one in every 185 households, which compared favorably to a national rate of one per every 136 households, Blomquist said. Nonetheless, foreclosure rates on Maui, which rose to one per every 111 households, and on Kauai, which rose to one in every 85 households, raised alarm, he said.

"To me, it's a sign that the national problem is becoming Hawaii's problem and that it's not limited to the mainland," Blomquist said

One of the reasons for the gain could be Hawaii's high percentage of second-home, resort and investment activity, Blomquist said. As many as 46 percent of all Hawaii foreclosures through April, the most recent measure, were at non-owner-occupied properties, he said.

"That's higher than the national average," he said, adding that 30 percent of foreclosures nationwide through April involved non-owner-occupied properties.

Investor activity was plentiful when Maui's median price shot above $700,000 during Hawaii's last housing boom, said Keone Ball, principal broker at Carol Ball & Associates in Kahului, which RealtyTrac ranked No. 8 among Hawaii ZIP codes for the most foreclosure activity in September.

Kihei, Lahaina and Wailuku were also in RealtyTrac's top 10 list of high-foreclosure ZIP codes.

"Since Maui's median price led at the peak, it only makes sense that it would be highest among foreclosure rates as loans come due and people continue to lose jobs," Ball said, adding that investor activity has fallen by more than 30 percent since the boom.

Still, RealtyTrac data show that growing foreclosures are not just contained to Maui or Kauai. Blomquist and other real estate watchers say Hawaii foreclosures will continue to increase as home equity falls, unemployment rises, loans are reset, and lenders fail to promptly approve short sales and modifications.

"There are so many things pointing to continued high levels of foreclosures," Blomquist said.

The rise in foreclosures is lowering Hawaii's real estate values, prompting more problems, said John Riggins, owner of John Riggins Real Estate in Kapolei, a region that ranked No. 5 on RealtyTrac's September list of high foreclosure ZIP codes.

"As neighborhood prices drop, some sellers will be forced into short sales or foreclosures," Riggins said. "The problem is self-perpetuating."

foreclosure, foreclosures, maui, homes, condos, kihei, lahaina, wailuku, kahaului

What are Reciprocal Beneficiary Relationshipsin Hawaii?

Well I was asking the same thing. So . . . I turned to the state of Hawaii for answers. Please read what I found out and contact me should you need help with Real Estate on Maui.

Howard Dinits RS CRS
RE/MAX Resort Realty
http://www.EasyMauiRealEstate.com
808-874-0600

A reciprocal beneficiary relationship is a legal relationship created when two consenting adults who are prohibited from marriage declare their intent to enter a reciprocal beneficiary relationship. Neither of the parties may be married or a party to another reciprocal beneficiary relationship. Those persons desiring to enter into a reciprocal beneficiary relationship must register their relationship as reciprocal beneficiaries with the Department of Health. All requirements of the Hawaii Revised Statutes, Chapter 572C must be met.

The Department of Health is responsible only for registering the declaration of reciprocal beneficiary relationship. The Department of Health neither makes any determination of the validity of the reciprocal beneficiary relationship nor is an information source on the rights and benefits extended to reciprocal beneficiaries.

Either party to a reciprocal beneficiary relationship may terminate the relationship by filing a signed, notarized declaration of termination of reciprocal beneficiary relationship with the Department of Health.

The Department of Health is responsible only for recording the declaration of termination of reciprocal beneficiary relationship. The Department of Health neither makes any determination of the validity of the termination of reciprocal beneficiary relationship nor is an information source on the consequences of the termination to the former reciprocal beneficiaries.

• How to file a declaration of termination of reciprocal beneficiary relationship.

Getting Information on Registering a Reciprocal Beneficiary Relationship or Filing a Declaration of Termination of Reciprocal Beneficiary Relationship by Telephone

Information on registering a reciprocal beneficiary relationship or filing a declaration of termination of reciprocal beneficiary relationship with the Department of Health may be obtained via the telephone system, any day or any time, by calling (808) 586-4533.

Contacting this Office by E-mail

To send an e-mail message, click on vr-info@doh.hawaii.gov now.

Who is Eligible to Enter Into a Reciprocal Beneficiary Relationship?

In order to enter into a valid reciprocal beneficiary relationship, it shall be necessary that:

• Each of the parties be at least eighteen years old;
• Neither of the parties be married nor a party to another reciprocal beneficiary relationship;
• The parties be legally prohibited from marrying one another under HRS chapter 572;
• Consent of either party to the reciprocal beneficiary relationship has not been obtained by force, duress, or fraud; and
• Each of the parties sign a declaration of reciprocal beneficiary relationship as provided in HRS section 572C-5.

How to Register a Reciprocal Beneficiary Relationship

• Prepare and file a Registration of Reciprocal Beneficiary Relationship form with the Department of Health (Registration forms may be downloaded from this site -see below).
• The Registration form must be signed by both parties and notarized - contact your local bank about notary public services.
• A fee of $8.00 (money order or cashier’s check only - made payable to the State Director of Finance - and no cash or personal checks will be accepted) must be paid at the time of the filing of the Registration form.
• At least one stamped, self-addressed, legal-sized envelope must be provided along with the Registration form - two stamped, self-addressed, legal-sized envelopes must be provided if the two Certificates (see below) are to be sent to two different addresses.
• The notarized Registration form, payment, and envelope must be sent by postal mail to:
  
  RBR Office
  P.O. Box 591
  Honolulu, HI 96809-0591
  
• After being registered, two Certificates of Registration of Reciprocal Beneficiary Relationship (one for each party) will be sent by postal mail using the provided stamped, self-addressed, legal-sized envelope(s).
• Registration will not be accepted and Certificates of Registration will not be issued on a walk-in basis.
• Copies of the Certificate of Registration are available upon written request, sent to the same address listed above, at a fee of $8.00 per copy (payment must be made in the same manner as for the initial registration), and a stamped, self-addressed, legal-sized envelope must be provided along with the request and payment.

How to File a Declaration of Termination of Reciprocal Beneficiary Relationship

• Prepare and file a Declaration of Termination of Reciprocal Beneficiary Relationship form with the Department of Health (Declaration of Termination forms may be downloaded from this site -see below).
• The Declaration of Termination form must be signed by either of the parties and notarized - contact your local bank about notary public services.
• A fee of $8.00 (money order or cashier’s check only - made payable to the State Director of Finance - and no cash or personal checks will be accepted) must be paid at the time of the filing of the Declaration of Termination form.
• At least one stamped, self-addressed, legal-sized envelope must be provided along with the Declaration of Termination form - two stamped, self-addressed, legal-sized envelopes must be provided if the two Certificates (see below) are to be sent to two different addresses.
• The notarized Declaration of Termination form, payment, and envelope(s) must be sent by postal mail to:
  
  RBR Office
  P.O. Box 591
  Honolulu, HI 96809-0591
  
• After filing, two Certificates of Termination of Reciprocal Beneficiary Relationship (one for each party) will be sent by postal mail using the provided stamped, self-addressed, legal-sized envelope(s).
• Declarations of Termination will not be accepted and Certificates of Termination will not be issued on a walk-in basis.
• Copies of the Certificate of Termination of Reciprocal Beneficiary Relationship are available upon written request, sent to the same address listed above, at a fee of $8.00 per copy (payment must be made in the same manner as for the initial registration), and a stamped, self-addressed, legal-sized envelope must be provided along with the request and payment.

How to Obtain Registration or Declaration of Termination Forms

Registration and Declaration of Termination forms may be picked up at the following locations:

Honolulu		Department of Health Building Lobby Area (1st floor) 1250 Punchbowl St. (corner of Beretania and Punchbowl Streets) (808) 586-4533
Hilo		Governor's Liason Office 75 Aupuni Street (808) 974-6262
Kailua-Kona		Governor's Liason Office 75-5722 Kuakini Highway, Suite 215 (808) 327-4953
Wailuku		Governor's Liason Office 2264 Aupuni Street, #1 (808) 243-5796
Lihue		Governor's Liason Office 3060 Eiwa Street, #106 (808) 274-3100

Registration and Declaration of Termination forms for downloading are in Adobe Acrobat portable document format (PDF).

If you do not have the Adobe Acrobat Reader installed on your computer, you need to install it before you can view and print the downloadable PDF files. The Acrobat Reader is free and can be downloaded to your computer by clicking on the button:

• Download Registration of Reciprocal Beneficiary Relationship form
• Download Declaration of Termination of Reciprocal Beneficiary Relationship form

In case you are looking for an Oceanfront Condo, I suggest Menehune Shores in Kihei as it is located near shops, dining, and the beach.

http://www.EasyMauiRealEstate.com

Check out this video and call me

808-874-0600
Howard Dinits RS
RE/MAX Resort Realty

Menehune, Shores, Kihei, oceanfront, beachfront, condominium, REO, Bank Owned, Foreclosure, Short, Sale, condo, RE/MAX

Buyer Incentives for Maui Real Estate

Price is key, but extras and perks also might catch a buyer's attention

Fancy buyer incentives like a new hybrid car parked in the driveway or a flat-panel TV might grab headlines but when it comes to actually enticing someone to buy a home in Kihei, Kahului, Wailea, Wailuku or Lahaina it's the more practical perks that count. Serious buyers are looking for a place to buy a home, not a trip to Vegas or the mainland, says Howard Dinits a top selling Real Estate Agent for RE/MAX Resort Realty in Wailea, Maui. Instead, effective incentives get to the heart of what's on the minds of potential buyers -- the overall cost of the home and the monthly payments they'll have to manage. The bottomline is what matters. Help in bringing down the interest rate of the mortgage for the life of the loan by paying points, for example, can go a long way in giving one home an advantage over another. Contributions to the down payment and common closing costs could especially be of help to a first-time home buyer, or someone that barely has enough down. Incentives can be considered when the home is first listed as a way to distinguish it from the the rest. They can also be added when the home hasn't sold in two or three months as a way of enticing a buyer without lowering the cost. Or incentives could arise in negotiations, when a buyer needs that one extra little nudge to commit. Make no mistake, the location and condition of a home are going to be its main selling points. But if sellers "put on their buyer' thinking cap" and really consider what issues the buyer might have, it could make the difference between selling this month or next year. I tell all of my sellers to look at his walk away money. You know the actual cash they get after settlement. As that is what matters.  A seller should figure how low he or she is willing to go, factoring in both the selling price and other incentives used to get a buyer to commit. But also be aware that most seller concessions need to be disclosed. When it comes to Maui Real Estate everything should be in writing. In addition, buyers and sellers need to make sure that they don't exceed the lender's allowable seller-paid assistance. Some allow 1%, 3%, or even 5% of the sales price, so it's important to have your lender call Howard Dinits and explain what program you are qualifying under and the maximum allowable credit I can get you before we write the contract so I can be certain to have it in C-67 special terms in the Hawaii State real estate contract. Below are six of the most common incentives being used in the Maui Real Estate market today

1. Reducing the price

A price reduction might be the most common buyer incentive, and often it is the one that is looked at first. Be it central Kahului, Wailuku, or West Maui Lahaina Area, or South Maui, Kihei, Wailea, areas, price is what matters today. The price is something that is a common currency -- it appeals to everybody. Be it a mainland investor, a local family, foreign investor from Japan or Canada. If a buyer has in her mind that she'll pay $300,000 for a home and the seller won't budge from $350,000, "$5,000 in closing costs and a plasma TV ain't going to get the house sold. But those extra little perks can grab the attention of a buyer; it also might inspire a commitment from someone on the fence between two similarly priced properties. What Howard Dinits usually recommends before you reduce the price ... think about what you can do with the same dollars in an incentive to entice a buyer.

2. Paying points

Sellers can offer to pay mortgage points for a buyer, an incentive I tend to use in today's market, when rising interest rates are at the front of a buyer's mind. One point is 1% of the loan amount, charged as prepaid interest. For example, instead of having an interest rate at, say, 6.5%, a seller might be able to pay points so that the rate is at 5.5% for the life of the loan. When a buyer sees a lower interest rate or monthly payment, that's something they can relate to. I often sell homes based on the payment. For instance can your family afford $1,100 a month? The setup makes sense for a buyer who has furnishings to buy for the new place; it also can make for an easier monthly-payment transition for families that are upsizing or are getting out of a rental situation.

3. Down-payment aid

For some first time buyers, the hardest part of entering the ranks of homeownership is the down payment. This is also an area where a seller can help. It's mostly first-time, VA, FHS, home buyers interested in this kind of assistance because they're often the ones lacking in sufficient funds to complete the deal. It gets people into homeownership and out of the rental money pit. The disadvantage is that the buyer is financing that additional amount, because a seller would likely come down in the price of the home if a portion weren't dedicated to down-payment assistance.

4. Help with closing costs

Closing costs include items ranging from taxes to title insurance and can add up, ranging between 2% and 7% of the loan value, according to Freddie Mac. So many buyers, especially those stretching to make a down payment, will be interested in having a seller help out. In Maui, buyers in every price range have been asking that these costs be covered. They ask for it because they know that they'll get it.

5. Adding a home warranty

A residential service contract is sometimes thrown in as an incentive because it acts as insurance for a home's systems, often including plumbing, heating and cooling. At a cost of a few hundred dollars, some real-estate agents consider it an inexpensive add-on that affords a buyer a little extra peace of mind. That peace of mind can be especially welcome during the first year in a house. Others take a different view, and say there's often confusion over what elements are covered. If a problem is considered a pre-existing condition, assistance could be limited. It makes the sale go smoother and often a buyer won't bug you to fix everything. 6. The little things

Other perks will appeal to buyers, too, ranging from the common to the unique. Payment of homeowner association fees, typically associated with condo developments are paid for 1 year. Also sellers with pools might also offer a year's worth of upkeep for it, a welcome help to those worried about the maintenance of the backyard attraction. Or maybe if a corner of the home was designed to fit a baby grand piano, leaving that instrument behind entices a buyer to go through with the deal.

Now you know some of the ways to entice a buyer. Have a home to list Call Howard Dinits RS RE/MAX Resort Realty at 808-874-0600 or 877-434-6487 to list your home.

Buying a home or condo? Call Howard Dinits and I'll score you a fabulous home with all of the right incentives. 808-874-0600

How to carry title in Maui County, Hawaii.

Aloha, Howard Dinits Here. As your Realtor it is my job to know the ins and the outs of Maui Real Estate. It is also my job to educate my clients about reo's, foreclosures, short sales, so they can make wise decisions.  Today's topic is How to carry title in Maui County, Hawaii.

Tenancy in Severalty - Property owned by John Only
• Liens against John are liens against his property, and will continue to attach after John’s death.
• Upon John’s death, his interest passes to his heirs or devisees through probate proceedings.

Joint Tenancy - Property owned by Janet Cool, Linda Lilikoi, and Suzy Martini.
• Janet , Suzy, and Linda’s interests in the property must be equal – each has a 1/3 interest.
• A lien against Linda is a lien against her 1/3 interest in the property only; upon Linda’s death, that lien is ineffective as to the
property.
• Janet does not need Suzy or Linda’s consent, nor does she need to give them notice, if she (Janet) wishes to sell her interest in the property to others.
• Includes right of survivorship – meaning, upon death of Suzy Jones, her interest in the property passes to Janet and Linda
without probate proceedings.

Tenancy by the Entirety - Property owned by Harry and Joyce Liu, husband and wife
• Harry and Joyce must be legally-married.
• Also for parties with a registered reciprocal beneficiary relationship (parties who may not legally marry - such as two
brothers, mother-daughter, two friends of the same sex - and who are not currently married to another person).
• Includes right of survivorship - upon death of Harry, interest passes to Joyce without probate proceedings.
• Judgment liens against Harry, but not Joyce, do not attach to the property.
• Federal Tax Liens and Child Support Liens against Harry, but not Joyce , DO attach to the property.
• Neither Harry nor Joyce may sell, mortgage, etc. without the other’s consent.

Tenancy in Common - Property owned by Tom James (2/3 interest) and Fred Johnson
(1/3 interest)
• No right of survivorship between the co-tenants - upon death of Tom, his 1/3 interest goes to his heirs or devisees through
probate proceedings.
• A lien against Tom is a lien against only his 2/3 interest in the property.
• Tom may sell, mortgage, etc. his interest without Fred’s knowledge or permission.

Now you know how to carry tile in Maui, Kihei, Wailea, Lahaina, Kahului, wailuku, maui meadows areas. Plus the entire state of Hawaii.

Howard Dinits RS
Certified Residential Specialist
Is here to help you with Maui Real Estate
Call me 808-874-0600

Here are the way to carry title. escrow, deed, joint, tenancy, Tenancy in Common, in Common tenants, in common, tenancy by entirety, by entrirety, Tenancy in Severalty, in Severalty

Canadians come to Hawaii for Maui Real Estate especially in Resort Areas.

People from Calgary, Whistler, Calgary, Ottawa, Quebec City, Nova Scotia and Prince Edward Island all have favorite areas which are Kihei, Wailea, Lahaina as they are all close to the beach and ammenities.

Canadian residents are known to travel long distances in search of warmer climates, but in the past the expense of getting to Hawaii and the high cost of its real estate had deterred both tourism and property purchases.

Now, Canada's strong oil economy and robust real estate appreciation has increased its citizens's discretionary income. And, while Canadians still view Hawaii as a faraway locale, the buying power of their dollar has brought second-home and investment purchases within reach. Japanese buyers are still the top luxury purchasers in Hawaii's high-end market, but prosperous Canadians are not far behind and real estate experts say that, in some parts of Maui, Kihei, Wailea, and Lahaina they now dominate the international sales market.

One big factor for someone condidering a  purchase is certainly the Canadian dollar; it appreciated a tremendous amount over the last year adding that favorable exchange rates could save a buyer 10 to 15 percent on their Maui Condo or Maui Home purchase.

The Canadian dollar now is worth about $1.08, compared with a low of about 62 cents in 2002. Last autumn, the loonie, as Canadians call the currency because of the dollar coin bears a loon's image, surpassed the American greenback for the first time since the mid 1970s.

In the 1970s Canadians purchased two-thirds of all new development in Waikiki; this time, more are interested in the resort properties on the Neighbor Islands, especially Maui as there's beautiful sunsets and beaches to frolic on.

Sales have picked up in some parts of the Hawaiian, Maui Real Estate market, the shortage of good properties to sell and the influx of first time buyers have kept prices more stable than those on much of the U.S. mainland.

International buyers from Japan, Korea, China, Canada, Europe, Oceania and Russia are still interested in Hawaii real estate, especially on the luxury end and I, Howard Dinits am here to help you.

The west coast of Canada is a very expensive place so it's not much of a stretch to buy in Hawaii. If you are from Canada you may find Hawaii is Cheap. A Bargain or otherwise affordable. Kihei Maui stacks up well both in price and quality to other top resort and second-home destinations favored by Canadians

Hawaii is a strong market. It has sustainability like New York and other prime destinations.

The softening in some parts of the state's property market has not deterred Canadians from diving into what, for them, has become solidly a buyer's market where cash is king. 

Japanese buyers, who have long been active in Maui and the Big Island, are still buying and selling real estate. But now Canadians are keeping pace. My Japanese buyers are looking for condos with amenities, but the Canadian buyers are actually looking for second homes, preferably near the golf course.  While the Japanese aren't really into haggling, the Canadians view the downturn in our market as an absolutely great opportunity and they are out there looking for a deal.

Canadian buyers also have become quite active in Maui, even at the high end of the market as well as entry level condos. They are als grabbing up the REO, Bank Owned Proprties, and Foreclosures as they may be some of the best deal on the market.

Canadians also have been particularly drawn to the Big Island, where single-family oceanfront condominiums can still be found for $500,000 and land can be bought for as little as 10 thousand dollars.

Whether you are from Canada or not it doesn't matter. I want to be your Real Estate Agent and if you have actually made it to the bottom of this page and you are looking for a hardworking Realtor, then Please Call Me. Howard DInits RS RE/MAX Resort Realty 808-874-0600 or 877-434-6487

http://www.EasyMauiRealEstate.com

How to Sell your Home in a Challenging Maui Real Estate Market.

Homes in Kihei, Kahului, Lahaina, Wailuku,and Wailea are taking more time to sell, but you cam beat the odds with Howard Dinits Maui Real Estate Agent Specializing in Helping Buyers and Sellers with Foreclosures and Short Sales.

First Impressions Count!

Does Your Home Have "Curb Appeal"?

First impressions do make a difference when selling your home. I have had numerous situations where my client has flown in from the mainland because they liked the house on my website but when we got to the house they refused to get out of the car. Why? Because the yard was overgrown the buyer. Do not let this happen to you. Tidy your yard. Cut the grass, rake the leaves, trim the bushes, and edge the walks. Put a pot or two of bright flowers near the entryway.

1. Fresh paint makes your house look clean, bright, and inviting.

It can't be overstated - when it comes to buying a house, the first impression is everything. If you're selling or getting ready to sell in the coming months, one of the easiest and most dramatic ways to enhance that first impression is through paint and be certain to pick neutral colors. Painting your house's exterior before you put it on the market give you the biggest bang for your fix-up buck.

2. Get rid of clutter and Odors

Everyone has that room we don’t let anyone into. Well … it is time to throw out the stacks of newspapers and magazines. Pack away most of your personal items and family photos. You’ll need to go through the house and store clothing you no longer wear to make closets seem roomier. Clean out the garage. Keep everything extra clean. Wash fingerprints from light switch plates. Mop and wax floors. Clean the stove and refrigerator and remove that musty smell. A clean house makes a better first impression and convinces buyers that the home has been well cared for. Get rid of smells. Clean carpeting and drapes to eliminate cooking odors, smoke, and pet smells. Open the windows and let the fresh air in.

4 Price it Right

The No. 1 thing that will sell a house quickly is price. That's the name of the game, When it comes to the Price is Right.

5. Pick the Right Maui Real Estate Agent.

Who?

Howard Dinits RS
RE/MAX Resort Realty

808-874-0600
877-434-6487

Howard Dinits is a top selling RE/MAX Agent and will help you beat the odds. Homes in Kihei, Kahului, Lahaina, Wailuku,and Wailea are taking more time to sell, but you cam beat the odds with Howard Dinits Maui Real Estate Agent Specializing in Helping Buyers and Sellers with Foreclosures and Short Sales.

How To Do a Short Sale in Kihei,
Kahului, Lahaina, Wailuku or Wailea, Maui.

Having a hard time making you mortgage payments?

These days, you hear plenty of stories about families that are losing their homes in Wailuku, Kahului, Kihei, Wailea and even Lahaina. Most people don’t want to face up to the reality, until foreclosure sets in, and that can harm your credit, or worse give you a huge tax burden. You can contact your bank and renegotiate the length of the mortgage or interest rate, which may lower your payment amount. If you are really having a problem with your payments and you have good credit you may want to do a short sale.

Your first step is to hire a Realtor.

List your property for sale with a reputable Maui Real Estate company and send a brief letter to all mortgage holders, giving them permission to speak with your Realtor. Otherwise, privacy laws will prevent them from talking to your agent.

What do I do, if there’s more than 1 lender?

If there are a first and second mortgage or a home equity line of credit, you may have to talk to more than one lender to get approval for a short sale.  The presence of two lenders makes a short sale more complicated since it’s often the lender holding the second mortgage that has to absorb most of the loss.

Who should I contact at the bank?

Be sure you call the bank’s loss mitigation department, which will be the group to decide whether, or not to accept a short sale.  Finding the decision maker is often one of the biggest hurdles in doing a short sale.

What information will the bank need to decide whether to accept a short sale?

The short sale submission package should include W-2 forms from employers (or a letter explaining that you are unemployed), bank statements, two years of tax returns, and other documents outlining income and debt obligations. In addition, as a short seller you should submit a “hardship letter,” explaining the circumstances that make it impossible for you to pay the full amount of the loan

What financial or credit liabilities will I have as a result of a short sale?

Many lenders ask you to sign a promissory note for all or part of the difference between the proceeds of the short sale and the debt obligation as a condition to a short sale. In such cases, the note gives lenders the right to sue a seller and attach other assets if the note is not paid when due. Having a portion of a loan forgiven may adversely affect a seller’s credit.

What tax liabilities will a seller have as a result of a short sale?

One often over looked aspect of short sales is that a seller must count any amount forgiven by the lender as income and pay taxes on that income, even if no actual money was received. The IRS requires lenders to submit a Form 1099 stating the forgiven amount. Sellers who meet the Internal Revenue Service definition of insolvency will not have to pay taxes on the forgiven amount.

Home ownership is your right and please remember that you have friends in the real estate industry that may be able to assist you in these tough times.

For more information contact:

Certified Residential Specialist

Howard Dinits (R)S

RE/MAX Resort Realty

877-434-6487  or via e-mail Howard@EasyMauiRealEstate.com

http://www.EasyMauiRealEstate.com

How To Do a Short Sale in Kihei, Kahului, Lahaina, Wailuku or Wailea, Maui.