Michael Hege RA, CDPE

There's nothing quite like a vacation to make one start to watch the calendar and think of all the things they need to do before they go. Even when you live somewhere like we are lucky enough to live, a change of pace is immensely exciting.


Camp 6 Employee Housing

I've been lucky enough to live in some really nice places, and one of my favorites is Yosemite. When I lived there before, it cost me $5.95 a week for a shared tent and 3 meals a day at the employee cafeteria. I made $1.35 an hour and when I think of my favorite all time jobs, it is one of them. It was a coming of age for me with each new friend sharing experiences at a time in my life when I was open to suggestions. Yosemite has been a special place for me ever since.

I still stay in touch with the most unlikely life long friend I ever could have imagined, Arvi Dorsey. He is in his 80's now and if I had half the energy he has today, I would consider myself lucky in deed. He is the consumate example of anything you set your mind to is possible. Active in his community, politics and his work, you just can't help but be energized when you are around him. But the thing he always worked the hardest at was friendships and relationships. A master of the handwritten letter and a genuine interest in the 100's of people who crossed his path during his career at Yosemite, he remembers us all and found the good in all of us. Somewhere in a personnel file on the jacket of my file there is an "ADP" on it. Arvi Dorsey Product.

It was just that kind of a place. My first experience with people from all over the planet who were drawn to a magical place. I remember thunderstorms in vast alpine meadows where the entire force of the planet seemed to be right above my head. Summer solstice from a perch above the valley where the majesty of the universe seemed to fit perfectly into the confines of the valley itself. Conversations that went deep into the night that stay with you the rest of your life. It is the place that I began to understand what a huge world it was.



The time I spent there was so important to me that I can trace most of my other significant events in my life to that summer and fall. Arvi took me to Colorado from there and introduced me to a friend whose sister became my wife. Yosemite put me in Colorado which put me in New Mexico which took me to Minnesota and Kansas. All from a letter of interest I wrote from my dorm room in college as my freshman year came to a close. I definately got my postage worth on that letter.

My daughter spent a summer there when she was in college and had her own life shaping experiences. My love of living where I love was something I missed more than I knew in the middle years of my life, and it is one of the great parts of living where I live now. It almost seems as though I have made a full circle and come back to the type of life that I always loved the most.

And now I get to go back there for some time to revisit all those thoughts and memories. A reunion of sorts, we will have our daughter rendevous with us along with some of my oldest friends and we will have some good times and good food. If you ever want to enjoy Yosemite from a place of comfort, it is a little known fact that there are actually privately owned cabins in Wowona and they are well managed and they have a great website.



The Redwoods in Yosemite

Some of my favorite vacations are new places and some of my favorites are old comfortable places... a lot like shoes I suppose. It all depends on what you're in the mood for. This time, I'm in the mood to float down my old friend, the Merced river. To sit on a rock at Inspiration Point and remember the awe I felt the first time I saw it. To circle the valley floor and feel the walls of the valley leap from the floor straight into the clouds. To take some time and make sure I remember how lucky I am for a thousand reasons.

And maybe, if I'm really lucky, to find myself in a grassy meadow with pouring rain with the echo of thunderstorms off the walls of the granite as the clawed hands of heaven and earth each reach to greet themselves in the greatest lightshow on earth. It just doesn't get better than that.



See you when I get back on the 16th!

NEW!!
FHA HUD Preforeclosure Sales Program

Basically, the definition of the short sale process is when the lender of a property allows the property to be sold for less than the amount due on the mortgage loan(s) secured by that property. With real estate values declining, it is more and more common for properties to worth less than the debt against them.

There are benefits for all parties involved. A short sale process is that it allows the seller to avoid the credit report damage associated with a foreclosure. A foreclosure can stay on your credit report for up to 10 years and can take an emotional and financial toll on you and your family. For the lender, it provides an orderly and predictable strategy without the additional time and expense of a foreclosure action.

But the pitfalls of the short sale process should be considered as well. The I.R.S. may consider any debt forgiveness as taxable income, thus resulting in a tax liability. Legislation has recently been enacted to exclude owner occupants from this liability, but you will need to talk with your tax advisor to determine how the potential tax consequences will pertain to your individual circumstance. IRS Debt Forgiveness Link

In addition, lenders can often pursue a borrower for the deficiency balance (the difference between the amount owed and the amount paid). in most CDPE transactions, this will be a part of the negotiations with the lender and releases from further action can often be obtained. Unsecured promissory notes are also a common remedy to address this shortfall with each borrowers situation and resolution being different depending on the lenders involved and the circumstances of the transaction.

The Short Sale Process

The short sale process can vary, but it will generally work as follows:

1) The homeowner will meet with an individual to review their situation and seek assistance in requesting a short sale. A Certified Distress Property Expert or real estate agent with experience in short sales will know the criteria required to obtain approval and begin to collect it. This information will all become part of what is known as the "THE PACKAGE". A marketing and pricing strategy will be decided and if possible, the home will be placed on the market.

2) The agent will request the seller to issue a letter authorizing the release of personal information about the loan and the property to the agent so that contact with the lender and the agent can be established and placed in the file to allow the agent to present offers and maintain contact with the lender. Example of Authorization Letter

3) As the property is marketed according to the agreed to strategy, THE PACKAGE will continue to be prepared and needs to be the priority. This will include a "hardship letter," which will detail and explain all financial difficulties as well as the seller's financial situation including bank statements, investment accounts, paystubs and other financial records often including the last 2 years of tax returns.

It is essential that THE PACKAGE be ready to submit as soon as an acceptable offer is received and must be accurate, thorough and complete. The transaction will require the lender to accept 10's to 100's of thousands of dollars less than the face amount of the debt and THE PACKAGE is the story that supports the request for that consideration. The last part of THE PACKAGE will be the purchase agreement and HUD (Net sheet to the lender), pricing research and a Broker Price Opinion to support the purchase agreement, marketing history of the listing and it will normally approach 100 pages of information.

4) At this point, once received by the lender, THE PACKAGE will be assigned to a loss mitigator with the lender and the evaluation process of the short sale will begin. If there are more than one lenders involved with the property, the above steps will be repeated for each lender. This process can be lengthy and 30 to 45 days would be easily expected and will depend on the lender. The importance of the completeness of THE PACKAGE is now evident as if it is incomplete, the file will get kicked requesting additional information and the process can be forced to start over. Because of the time involved, it is important to keep the prospective purchaser informed also and to streamline the time required as much as possible so as to not loose a buyer close to the end of the road.

5) During this process, the lender will be obtaining a Broker Price Opinion of their own, verifying the file, reviewing the purchase agreement and evaluating the hardship of the borrower. There are many things that need to come together and when the do, the lender will issue an acceptance of the short sale with a list of conditions. That acceptance letter is the prize you are looking for and their needs to be one from every lender who has a lien against the property. Example of Approval letters

6) At this point, the transaction becomes similar to a traditional transaction. Escrow will be the intermediary between the lender and the transaction and will be responsible for payments and staying within the criteria of the approval letters.

To summarize, the short sale process can be lengthy frustrating and at times... maddening. But if done correctly it is the closest that we come to a "Do over" and when you consider the dollars involved in some cases, one can understand the lender's requirements to be sure it provides them with the best return on their bad situation also. The lender avoids the uncertainty of the foreclosure process, the seller avoids a foreclosure on his or her credit report (along with potential bankruptcy), and the buyer hopefully got a good deal on a property.

Considering the complexity of the short sale process, you must be educated and you need to be sure that the agent you are working with understands the process and is motivated to represent you well in the negotiations, preparations and marketing of your home. If you are considering a short sale, make sure that you discuss your situation with a competent lawyer and accountant as well as the real estate agent. The more educated you are on the process and the more you know what will be expected of you and that you do those things, the easier the transaction will be.

Just repeat after me... "This too shall pass."

Links

Washington Post article on the HUD Program known as "Making Home Affordable

IRS Document on The Mortgage Forgiveness Debt Relief Act and Debt Cancellation

For more information on Short Sales and the process involved, visit my website at :

WWW.IhateShortSales.com

I hate short sales! But I hate foreclosures more.

Not in my Market of Ko Olina, Kapolei and the Leeward Coast? Let me know if you would like a Certified Distress Property Expert (CDPE) in your market and I will make arrangements to have an expert in your area contact you.

Click Here For An Expert in Your Market

Within this website, you will find information to assist you in evaluating a short sale as an alternative path if you currently owe more money on your house than you believe you can sell it for. In "Resources and Forms" you will find some of the actual paperwork that is required in a successful short sale.

I can't imagine an agent would prefer the additional work required to work with a lender on a negotiated short sale transaction. I've yet to come across a distressed owner who is pleased they are needing to seek relief from the bank because they can not keep up with their mortgage payments. I've never worked with a buyer who was excited about the prospect of the uncertainty that a short sale purchase involves, often waiting much longer that it seems logical to find out if they were going to be successful in purchasing a home or not. Short sales are not fun and they are not ideal. What they are is a good solution to a bad situation. So, while I may hate short sales, I hate foreclosures more.



The Mortgage Crisis has affected nearly everyone who owns property. A successful short sale will at least give you the opportunity to start over and have many of the damaging effects of a foreclosure avoided. As a Certified Distressed Property Expert (CDPE), I have dedicated my time and effort to understanding the issues distressed homeowners are dealing with. As a CDPE Professional, I understand the full range of solutions and am ready to help. As an office, Kapolei Realty, Inc., has made the commitment to assist people in this situation. Nearly all of our agents have obtained the elite designation of CDPE and we really can and do help to stop the foreclosure process one family at a time.


Don't Let Time Run Out on You

Of all the things I have learned during my CDPE training, the most disturbing was that 7 out of 10 people proceed through the foreclosure process without ever talking to a real estate professional. Please don't let yourself be one of those people. We understand that it is hard to ask for help, but that is exactly what you need. You really do have some choices and the choices you make will be with you long after the foreclosure process has come and gone. I am not going to say that it will be an easy process for you and I wish I could say that it will be enjoyable. What it will be is a well explained process that you understand after our first consultation and will make all the difference in the world to you if you are able to have a controlled process that resembles a sale of your home versus a foreclosure and eviction.

If you would like to discuss whether or not a short sale may be your best answer to a difficult situation and are located on the Leeward Coast on Oahu, we would be more than happy to arrange a time with you where we can discuss your options. If you are outside of our market place, our office is in touch with an entire network of individuals who are as dedicated as we are to Stop Foreclosures and we will gladly put you in touch with someone in your marketplace who is also a Certified Distress Property Expert and can offer you the same services we provide to guide you though the process. If you would like to give me a call and find someone in your area to talk with, please feel free to do so at (808) 225-3660 or Click Here to send me a note.



Yes it's true. I do hate short sales. We all do. They are a necessary evil in our current mortgage crisis with property values falling below the values of the mortgages. The good news is that there are thousands of people who are in the same situation you might be finding yourself in and that they are getting the assistance they need to solve their own individual crisis. We consider every short sale we complete to be some of the best work we do. They do take time and right now, time may not be your friend. You do have our commitment that if you contact us, we will offer you some straight talk and let you know what we can and can't do and if your circumstances meet the requirements for a successful short sale.




Michael Hege' RA, CDPE
Kapolei Realty, Inc
(808) 225-3660
www.HomesOahuHawaii.com
www.KapoleiToday.com
www.IhateShortSales.com

Whether you are new to this string on the Beach Villas at Ko Olina or have been following it since December... welcome! In either event, it might be a good time for a review of that last year. As is the custom, if you want to read the full details, links to the earlier articles are at the end of this.

When we began this story, the Villas were about half sold and were being offered with some slight price reductions, but were essentially priced close to the prices that the first 127 units had sold for. That was December 2008.




In January 2009, Centex Destination Properties, the Developer of the Beach Villas at Ko Olina announced that they were going to have a Final sale event on June 5th and 6th with plans to sell the 120 remaining units at discounts ranging between 25% to 35% from their last published prices. Reservations were going to be taken on a priority basis with a $50,000 deposit and the selection of the units would be based on the order that your reservation was taken. During the time of this sales period, there were approximately 140 reservations taken and plans were being made for the event.

In May, it became apparent that "issues" were beginning to develop on a few fronts. The future control and ownership of several commercial apartments within the complex like the fitness center, beach bar, reception area and pools became embroiled in controversy and there was discussion as to whether the classification of the pool areas should remain as limited common areas appurtenant to the commercial apartments or if the Home Owners Association should reclassify those areas as common area and assume control of those areas. Between the existing homeowners, prospective homeowners, Centex and the Ko Olina master developer several different opinions existed and those issues are now in the process of being resolved either through mediation between the parties or if unsuccessful through that process, ultimately through litigation.




At the same time, it was also expressed by the Master Developer that the right existed for them to purchase 35 units of their choice and that option was presented to Centex. Again, differences in opinions were expressed and that issue also is in the process of being resolved either through mediation or if unsuccessful through litigation. At this point, due to the uncertainty of events, the reservation holders were given the option of maintaining their reservations with the return of their $50,000 deposits and new reservation holders were given the opportunity of placing reservations without a $50,000 deposit. There was an initial attempt to hold the event in July, but due to the complications that was postponed also.

That brings us to where we are today. Since the $50,000 deposit requirement was removed in June, the number of reservations has increased from about 140 to close to 220 at last count and continues to increase daily. It was determined that due to litigation and some changes within the parking spaces assignments, that it was necessary for a new public report to be filed which was done and has now been accepted. As we sit right now, the plan is now to move forward with the sale event, irregardless of the resolution of the "issues" and with or without the 35 lowest price units depending on the resolution of those issues between now and then.

So in summary, these are the key points:

The sale event is currently anticipated in the second half of September.
The sale event may consist of 120 units starting in the $500's or it may consist
of 85 units starting at about $800K with the 35 units being held out of the sale.
There will be a reclassification of the limited common areas or there will not be.
Limitations will be placed on the future use of the common areas or not.
Lenders are currently in place to provide financing for the units apparently in any
of the above scenarios.
Prices are about to be released and appear to be closer to 30% to 45% less than the
last published prices depending on the units.

If the 35 units are held back from the sale, it is entirely possible that there may be in excess of 250 reservations or more for 85 units and it is impossible for me to predict how many of those reservations were hoping for the units that were anticipated being priced below $800K. My understanding is that between now and then, there is going to a refinement of the existing reservations with preapprovals being requested, level of interest being determined and units of interest being established. Packages are going to be delivered to the existing reservation holders to assist in the diligence periods including unit pricing so that by the time the sale is in process, purchasers will have a good idea of the units that are going to be available based on their reservation place and the developer will have a solid understanding of the ability of reservation holders to perform once the contractual period is entered.



At this point, it seems there is still much to be answered for the event to be a true success. My hope is that as the event approaches, those answers will be resolved and that the end result is that all of the remaining units will be included in the sale. If not, it will a little harder to make a truly informed decision of price and value, but with the anticipated prices, it will also be hard to say no if given the chance to purchase the unit you want at the price you would like to pay. Time will tell and a lot can happen in 30 to 40 days when parties are motivated to do so.

If you are becoming aware of these units for the first time, I encourage you to read the links below. If you are interested in potentially forming a partnership with an existing reservation holder to increase your chance of a higher selection, there are some parties who may be interested in doing so and if you would like to discuss that as a possibility, follow this link: Partnership opportunities .

If you are interested in an alternative ocean front property I currently have a comparable ocean front property that is fully described in this link, Kai Lani Ocean Front

Here is a link to an article that was previous to this one that also has links to all of the earlier articles. Link to earlier article

I hope you find this update interesting and hope that it increases your understanding of what is a bit of a confusing situation. If you would like some personalized or additional information, please feel free to contact me at this link: Email Michael

Look forward to hearing from you!

Aloha,



Michael Hege' RA
Kapolei Realty, Inc
(808) 225-3660
www.KapoleiToday.com
www.HomesOahuHawaii.com

Furnished 3 Bedroom For Rent In Kai Lani at
Ko Olina Resort and Marina
"Place of Joy"
Now only $3,750/mo Fully Furnished!





If there is a better place to live, I just haven't found it. Located just outside of Kapolei, Hawaii, Ko Olina Resort and Marina is simply paradise. 4 protected lagoons front 5 star destination vacation spots like the Marriott Ihilani, The Marriott Beach Club Time Share Resort, The Beach Villas at Ko Olina and the Ko Olina Marina. With Disney's newest Hotel currently under construction, wouldn't you love to live where most people can only vacation.

Currently available units:

I have a Kai Lani (Heavenly Ocean) 3 bedroom with 2 full baths townhouse with one of the best unobstructed Ocean views in the entire Resort. This unit is available for rent for the first time on a 12 month lease. Walk out the sliding doors and enjoy the sunset or take a stroll to a secluded beach off the beaten trail. This the view from the master bedroom window! The same view is from the covered lanai and the living room through the large sliding glass doors which face the ocean. At sunset, you can watch the sun dip into the ocean from the comfort of your own home.





This unit is fully furnished includling kitchenware, linens and 3 televisions and is in exceptional condition, with plantation shutters, granite counters, plantation shutters on every window and laminate flooring throughout.













The kitchen is equipped with all appliances (stove, range, dishwasher, microwave hood, refrigerator, beautiful granite counters and ample storage)




A single car garage with openers and an additional assigned parking space in this gated community with swimming pool and hot tub on 11 beautiful acres fronting the ocean create a place to live you've only dreamed of. Here is a view from your personal lanai!




The grounds at Kai Lani are exceptional and include a resident only
pool and hottub with BBQ grills for individuals to use




As a resident of the community, through the Home Owner Association paid by the owner, you will also be entitled to an included membership to the Ko Olina Sports Club which includes tennis courts (with lights at night), a fitness center, fitness classes and discounts on restaurants and other activities in the resort. If you would like more information on the sports club I can email you the latest newsletter.


Fitness center that is open until 10 pm with plenty of Equipment

NOW FULLY FURNISHED! JUST PUT YOUR CLOTHES IN THE CLOSET!

Available now for only $3,750 /month on a 12 month lease this is as good as it gets! If ocean views and proximity are what you have hoped to find, I'm not sure you can find a better location. This unit is a rare opportunity to obtain a rental of premium quality and location that was recently for sale at well over 1 Million dollars. They say that it's all about the view in Hawaii and this home has it! For information about shorter stays and availability, give me a call and I'll let you know if there is anything available.

Enjoy the various pictures of the furnishings here or for a picture extraganza of the both the unit itself and some of the surrounding views, Click here and choose slideshow Master has King sized bed and there are 1 Queen bed in each of the other 2 bedrooms. One of the bedrooms has a large desk if your needs include a home office and there is a computer in the living room at another reference and writing desk. I've included a few more pictures below of Kai Lani and the Fitness center and if you find yourself drawn to this home and would like to make an appointment to see the property, give me a call at 808-225-3660 or you may email me by CLICKING HERE


Mahalo for your time and I hope to hear from you if you are interested in finding out more about the property!

Michael Hege' RA
Kapolei Realty, Inc.
(808) 225-3660
Ko Olina, Hawaii

Here are a few pictures :


This is the entry gate into Kai Lani located within Ko Olina Resort & Marina










Two excellent tennis courts with lights at night are available at the
Sports Club and the membership is included with your lease.


If you would like to learn more about Ko Olina including the rest of the resort, world class golf course, and marina - CLICK HERE

If you own property in Ko Olina and have considered having a professional management service manage your property, Kapolei Realty, Inc has been managing property in the area for over 15 years and is a locally owned company with an impeccable reputation. I would be more than happy to explain our property management program to you! An email will get the best response if you are curious about our system, so click here to Contact Michael

Michael Hege' RA, CDPE
Kapolei Realty, Inc
(808) 225-3660
www.HomesOahuHawaii.com
www.KapoleiToday.com