Stephens,
Am I correctly reading from your post that your property is located in Naalehu? Have you researched to know whether other similar properties have sold recently? Do you know what is competing on the market with your property?

Mike is correct recent Hawaii legislation keeps agents at arms length from advising on distressed property transactions, where "distress" is very specifically defined, since many investors are feeling distressed at the moment, and not just in our market! However, if the price at which your home could reasonably be listed and sold is above your mortgage obligations and you are not behind in any payments (on your mortgage, taxes, or association fees if any), your best shot is to list it with an agent who specializes in that market. The selling season is almost upon us!

Although that market is a little far from my corner of the Big Island, I'd be happy to refer you to an agent in Ka'u if you need a name or two.
Aloha
Beth Thoma Robinson R(S)
beth@hawaiipalmproperties.com
808.443.4588

Specializing in North and South Kohala on the Big Island
"We know this market by heart"

Aloha Stephen:

I understand your and empathize with your situation. I am a Broker in Charge at RE/MAX Honolulu and I study the market daily and stay on top of it. You can visit my website stats at http://www.hawaiirealestatestatistics.com.

I see upside in equity daily of listings coming off of the market in the form of Expired and Withdrawn Listings simply because the owner owes more than the home value.

If you need to I would look for a Loss Mitigator who might be able to help you with a Short Sale. Real estate agents in Hawaii are prohibited in discussing the terms of a short sale proposal.

Good Luck in your possible sale.

Aloha,
Mike Gallagher
Broker in Charge
RE/MAX Honolulu
Mikeg@hawaii.rr.com