Kolea 16G Foreclosure
Two new communities were built in the last few years at Waikoloa Beach Resort that had unique attributes. Hali’i Kai has an amenity area with a saltwater pool, exercise “hale” and members-only Ocean Club Bar and Grill that is as close to the water as you can get. Its sister project Kolea is located between the Hilton and the Marriott on the beach at Anaeho’omalu Bay, where in the original resort plan a third hotel was to be located. That gives it the only dedicated beach access within the resort.
At Kolea there are 17 homesites in front of the three-story condominiums. One of those homes sold last month for $6.5 million and there are others listed between $6-8 million. But as of today you can acquire a 2-bedroom, 2-bath Kolea condominium for under $500,000.
This is the third REO (bank-owned) Kolea condominium to come on the market Although many foreclosures we see are plagued with poor maintenance and missing appliances, this one even has its Viking appliances and outdoor “summer kitchen” intact. It was purchased in 2006 for $890,000, so the new price is 45% below what the original owner paid!
One more feature in the listing makes this particular unit especially appealing: financing. Mortgage lenders in the current market are requiring 30% down and higher interest rates on resort condos because those turned out to be a high-risk category during the boom. However, according to the listing, this particular property qualifies for FannieMae’s HomePath Financing program, which means as little as 3% down!
Meanwhile, at oceanfront Hali’i Kai a foreclosure went on the market last Friday that was obviously well-priced and in great conditon. It had multiple offers submitted by the following Monday. An identically priced REO property at the adjacent condo community without the unique oceanfront location languished with no offers throughout the “high season” and was subsequently sent to private auction.
MORAL OF THE STORY: When foreclosure properties are unique, well-maintained and priced aggressively, savvy buyers are responding to the opportunity. The first to move gets the “pick of the litter”.
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Clayton S Adams | Jun 11th, 2009
Nice article. Home path is good. This was a rare property as most of the loans done at these two developments did not go to Fannie. Keep up the good work and Aloha!!
Beth Thoma Robinson, R(S) | Jun 12th, 2009
Aloha Clay,
Amazing, huh? Maybe you could give us more insight. Is there a HomePath lender here in Hawaii or do the clients need to call one on the Mainland? Can you help them with these loans?
Mahalo!
Beth
Update on Kolea Condo Foreclosures and Short Sales « Hawaii Real Estate Blog | Jul 24th, 2009
[...] posted recently about foreclosure opportunities at two of the Big Island Kohala Coast’s most unique and beautiful condominium communities, [...]