Can I Get a Deal on Hawaii Real Estate in a Bankruptcy Sale? written by: tamarawilhite

Throughout the U.S., many people look for foreclosures and bankruptcy sales to find bargains on real estate. Can you find cheap Hawaii houses for sale in bankruptcy sales?

Continue Reading

Hawaii Real Estate and Bankruptcy

While Hawaii real estate prices have started to recover from their massive decline during the Great Recession, only Oahu has seen property values rise above their pre-recession highs. The percentage of home mortgages that are underwater is higher than it is on the mainland, though there are fewer distressed real estate sales and bankruptcies today than five years ago. However, many Hawaiian real estate owners are having to go through bankruptcy. Those who own Hawaii real estate while going through bankruptcy face a number of complexities those on the mainland do not. Differences in the Hawaiian real estate market and state law mean that you may find homes for sale as part of a bankruptcy but not the deals you would expect on the mainland.

One real estate matter that comes up in Hawaii bankruptcies that rarely do on the mainland are residential leases and leasehold mortgages. Many homes in Hawaii are leased over a long term like 40 or 55 years, not sold outright.
If the real estate was sold within 6 months of filing bankruptcy, the filer can keep that amount of equity while the remaining money raised from the sale is applied to the debt.
About two thirds of the state’s population lives on Oahu, preventing home prices from falling very far after the 2007 housing bust. Since then, housing prices continued growing 5% to 10% a year.

Can I Get a Deal on Hawaii Real Estate in a Bankruptcy Sale? Throughout the U.S., many people look for foreclosures and bankruptcy sales to find bargains on real estate. Can you find cheap Hawaii houses for sale in bankruptcy sales?

Tamarawilhite