Kauai Foreclosure Update – January 8, 2011

This week saw a continuation of the foreclosure pace that we’ve been experiencing for most of 2010. How do I know? I monitor our market since it’s small and easy to get to the courthouse every day. Kauai foreclosures can be judicial or non-judicial, through the courts, or not through the courts. The judicial foreclosures are held on the courthouse steps, and the non-judicial proceedings either on the steps or across the street at the police department.

Some of the non-judicial legal firms (figure that one out) have been notified to move off of the courthouse steps. Today was a fairly typical Friday, with auctions held under the supervision of David B. Rosen, Honolulu attorney. For some reason, though the auctions are published as happening at noon, David and his associates don’t usually get their act together until 12:30 or 1:00, or even 2:15, arrghh.

Today, we had 34 foreclosure auctions scheduled. Five auctions were canceled. That generally means the owners were successful in some type of loan modification, or the property was sold in a short sale or other type of sale. 28 of the foreclosures were postponed either for a month or more, providing the homeowners with time or options to resolve the problem. It’s my opinion that letting go of a property through a short sale is a more benign process with both benefits and risks. It’s important to speak to an informed Realtor who knows how the banks are handling these distressed properties as well as consulting a tax preparer about the tax consequences of a short sale.

There were two properties that reverted back to the lender today. These were non-judicial proceedings where the attorney’s agent entered a bid on the courthouse steps on behalf of the lien holder. One auction was for unit# 330 at Waikomo Stream Villas. This foreclosure was long delayed by many legal hurdles, and the bank finally made its move with a bid of $336,712.83. Do not ask me how they got that number. It’s an obtuse science to be sure. This unit will most likely come back on market in 2 to 5 months. The last two bedroom unit sold for $415,000 last November, so when this unit resurfaces it should be priced-to-sell.

Nice interior and successful vacation rented, now owned by the lender

Peaks of the ocean from Waikomo Stream Villas, affordable in Poipu

The other condo to be reverted back to it’s loan services was unit# 111 at Wailua Bay View, an interesting complex near the Wailua River, adjacent to Wailua Bay, and with relatively modest maintenance fees for an oceanfront property. This unit sold for $243,000.

This one bedroom condo had been on the market for a while and apparently had an offer in with the bank for a short sale, but the bank foreclosed anyway. When this unit resurfaces as a bank-owned unit it will surely be one of the lowest-priced oceanfront condos we’ve seen in a number of years.

Wailua Bay View units are steps from ocean          Wailua Bay, great for swimming, surfing, kiting

View all Kauai REO and short sale deals in my Kauai Foreclosure Gallery →