Kauai Real Estate REOs & Foreclosures

After dealing with massive foreclosures on the contiguous 48 states, mainland banks are releasing their foreclosure inventory onto the Hawaii market. Kauai has been averaging around 3 new REOs a month. This figure will probably increase to around 5 to 7 a month as mainland banks are catching up on their foreclosure inventory. Current Bank owned properties listed on Kauai are:
1. 5309 Kualono St, Kapaa, SFR 3/2 at $414,900. The previous owner had paid $437,000 on 4/27/05. MLS#207359
2. Halelani Village, Lihue, Condo 3/2 at $314,900. The previous owner had paid $390,000 on 7/25/06. MLS#207665
3. Villas Of Kamalii #35, Princeville, Condo 3/3 at $699,900. The previous owner had paid $620,000 on 2/15/2005. MLS#199987.
4. 5168 Kawaihau Rd, Kapaa, SFR 3/1 at $274,900. No data on previous sales. MLS#204319
5. 4243 Waiahi St, Hanamaulu, 3/1.5 SFR. $369,900. The previous owner had paid $440,000 on 6/26/06.
6. 4062-M Blackstad Rd (Off Koloa Road) 2 homes and guest cottage on over an acre. A fixxer upper for sure. Not yet listed. Will update with price when listed. The previos owner had paid $850,000 on 3/8/2006.

4243 Waiahi Street, Hanamaulu.

Are you interested in buying a REO property? Most banks have similar requierments. A prequalification letter from a lender and sometimes in the case of Well Fargo or Counrtywide a prequalification letter from one of their loan officers. The Banks may also require proof of cash funds if your purchase is an all cash purchase. If you would like to be notified by email each time Kauai Dreams Realty gets a new REO just email me at julie@hisemail.net.

The past 30 days has shown an increase of bank foreclosure and REO activity on Kauai. 4941 Hui Road in Anahola closed escrow on 3/4/08. This property had a newer house and guest house on over a half acre and sold for $600,000. A Countrywide REO at 5688 Kula Mau’u St. in Kapaa went into escrow after only being on the market for 2 weeks. A Villas of Kamalii unit in Princeville just went into escrow after a major price reduction. At least two new REOs will be coming up this month. 4243 Waiahi St in the Hanamaulu area of Lihue should be priced well and up on the MLS in about 2 weeks. Another larger property in Koloa with 2 homes will also be coming up on the MLS by the end of the month or begining of April.

One sure sign that there will be more REOs coming up is the increase in banks and other companies ordering BPOs. BPO stands for Broker Price Opinion. This is where a banks repesentative will request a form be filled out on a particular home, by a real estate agent, where the home owner is behind on their mortgage. The recent increase of these requests appears to coincide with the increase of forclosures and REOs. Unfortunately the banks willingness to negotiate on price means lower home values for other properties. Fortunately current investors can pick up some real bargains. Often REOs have a bit of deferred maintenance but if you’re the type to roll up your sleeves or know a good handyman buying REOs are a good way to make a satisfying investment in an unsure economy.