Foreclosure in Hawaii>Question Details

Verdally, Home Buyer in

is there such a transaction in Hawaii as government tax foreclosure property?

Asked by Verdally, Tue Jul 1, 2008

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Aloha. Yes. The tax foreclosure auction sales are held several times per year here on the Big Island, but typically over here they are bare parcels of land - don't see too many homes that wind up in tax foreclosure. Contrary to what Kallen says below, there are not hundreds of tax foreclosure sales in the state of Hawaii!! And the biggest misconception is that you're going to get a "great deal" at a tax foreclosure! The last one I attended myself was about six months ago in Hilo, and about 30-40 properties were "sold" but none of them were at any significant discount over what you could buy for sale on the open market, and some were even more expensive than properties we have listed, because of the "auction factor" where for the bidders it becomes more of an "I want to win" scenario than "I want to buy a good deal." Clearly, there are a lot of uniformed people at these sales too. When you buy a property at a tax sale in Hawaii, the owner has ONE YEAR to come back and pay off you, all the fines and pay you 12% interest on your money, so it's trickier than it seems. My advice? If you're looking for a "deal" work with a Professional Realtor or Broker such as myself to assist you in finding the best value at the best price in today's market. There are too many variables buying property in Hawaii to leave to chance. For example, do you know about Lava Zones and catchment tanks? No? Better hire a professional! If you need assistance, we're happy to help - Katie Minkus, Broker-in-Charge, Lava Rock Realty, LLC. 808-887-2500. Katie@lavarockrealty.com. Contact me anytime and I'll be happy to match you with one of my knowledgeable, professional Buyer's agents. Aloha!
0 votes Thank Flag Link Tue Jul 1, 2008
Sure there is. The IRS puts liens on homes all the time. You'll be seeing a lot more of these in the next few years. I'm not sure if we're halfway through this mortgage crisis or not.

Fortunately, we haven't had the equity problems that they have had on the mainland with dropping values.
We have had a lot of layoffs though, and a boom in the real estate market, peaking in 2005.
Many areas have dropped sales volume as much as 50%, however, median prices have stayed pretty steady, not changing by more than a few percent in most cases. The people that purchased (or did high loan to value refinancing) in the last 3 years are the most vulnerable.

The tax man will be here for the next few years to try to get his money. You can do a quick search for foreclosures on my website.
0 votes Thank Flag Link Tue Jul 1, 2008
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