Do you need to sell your house to avoid foreclosure in Hawaii? Learn more about the critical steps you can take so you can prevent the bank or your HOA/AOAO (association) from foreclosing on your property…
Nobody wants to deal with a negative and highly stressful foreclosure process, but unfortunately, it happens all the time and to good people (so don’t feel bad). While foreclosure rates are dropping, people are still losing their homes to the banks (or to aggressive homeowner associations). Life can change very rapidly – you could lose your job or other sources of income, get divorced, have an unplanned medical situation, loss of a family member, etc. — and all of a sudden it becomes difficult to maintain your payment obligations.
The good news is that by quickly selling your Hawaii house (or townhouse/condo), you can put an immediate stop to the bank’s plans to foreclose on you and take back your property. Keep reading to learn more about how to sell your house fast to avoid foreclosure in Hawaii.
Sell It Fast
When you need to sell your house fast in Hawaii, you have two primary options:
1) You can choose to list it and hope to find a retail buyer on the open market, or
2) you can opt to work with a direct buyer (like Oahu Home Buyers), guaranteeing you a sale date and sale price without having to come out of pocket for any fees.
Sure, direct offers are usually less than what houses on the MLS would get if you had the time to wait it out, but know that with a direct investor buyer, you won’t have to pay closing or commission fees, make any repairs (we call it selling ‘as is’) and, perhaps most importantly, you can sell in time to avoid an impending foreclosure.
If you do choose to instead list your house in Hawaii, be advised that it can be risky if time is of the essence (it is taking longer to sell houses in Hawaii right now than in the recent past). If your house doesn’t sell right away, the banks may be able to get to it before you secure a buyer and get to closing. You’ll need to price the house under market value anyway to sell quickly and will have to clean it well and pay for top photos to attract buyers. You’ll also want to find a buyer who will be able to close on the house right away as any delay could cost you the sale and the house (hint: cash buyers are great, but not too common among the MLS shopping pool); most buyers will take advantage of today’s low interest rates and use a conventional or similar loan, but that rarely leads to a fast closing.
Plan Your Move Now
When you work with a direct buyer such as Oahu Home Buyers, they will likely be ready to close quickly – maybe even faster than you can realistically move out. That said, you will need to be ready as well! You could hypothetically get an offer this week and close next week if that’s what you want to do! If this happens, you will want to be ready to go. So be prepared to have somewhere else to go – apartment for rent, friend/family’s residence, vacation, etc. Start de-cluttering and maybe have a garage sale to help empty your place of items you no longer need. You might be able to negotiate a short lease-back if needed, but that’s a case-by-case basis.
Back to knowing where to go — If finances are tight, as they usually are in a foreclosure scenario, buying a new home may not be possible right now (although maybe try rent-to-own in Hawaii). You’ll need to be qualified and have reasonably good credit; however, most people coming out of a foreclosure-avoidance situation choose to rent an apartment or home for a while until they can get their financial house back in order. There’s no rule that says you can’t be a homeowner again in the future, so don’t be disheartened!
Don’t Hesitate
Once the bank or association has begun their foreclosure proceedings, you may have less time than you think to put a plan in place. You’ll likely have experienced at least a moderate (if not significant) amount of credit damage which can make buying again the future more challenging (though not impossible as previously stated). The best plan is to BE PROACTIVE – talk to us today or have another plan in place. Do NOT wait until the commissioner schedules your home for auction and the sheriffs come to evict you from the premises.
By getting a direct, no-obligation offer from Oahu Home Buyers, you will be able to properly analyze your options and ensure you don’t lose your property to the bank or HOA/AOAO.