This is just a quick follow up on the mortgage relief post I wrote on April 4th. Yesterday, I read an NPR article about issues with mortgage relief . It featured a couple from Maui. Like many island residents, the couple is experiencing a massive loss of income due to the impact on COVID-19. They are one of the many homeowners pursuing mortgage relief that are finding the terms offered by their lenders to be onerous.

In the case of the Maui couple, their loan is through Freedom Mortgage. While the lender offered to defer their loan payments for three months, Freedom Mortgage required a balloon payment at the end of that period. Even under the most optimistic scenarios, it seems unlikely that the borrowers would be able to come up with that balloon payment.

The Consumer Finance Protection Bureau website indicates that federally backed mortgages should be able request forbearance for up to six months. The CARES Act creates mechanisms to move deferred payments to to the end of the mortgage. Freedom Mortgage originally claimed that the balloon payment was the only option they could offer for deferred payments. They claimed they could not defer the amount of the forbearance to the end of the loan. NPR brought this to the attention of federal regulators. On a subsequent follow up, Freedom Mortgage changed its tune with NPR. The Maui Couple is still trying to get clarification on their options.

Takeways

To be clear, not all borrowers are running into the roadblocks encountered by this Maui couple. A number of lenders are making adjustments that allow for six month deferments with deferred payments at the end of the mortgage. That said, borrowers should expect prolonged long wait times and filing an application to get the forbearance. Forbearance terms can also vary depending on your loan program.

The biggest takeaway is that borrowers should be cautious if they are seeking mortgage relief. Make sure you read the terms of any relief offer closely. Reach out to a housing councilor (800) 569-4287 if the terms offered by your lender are confusing or not financially feasible.

Maui depends on tourism for a significant part of its economy. Covid-19 and the ensuing shut down means a big loss of income for a number of Maui homeowners. If you are a Maui resident unable to pay your mortgage, there may be some mortgage relief options for you based on the CARES act.

Eligibility

To be eligible, your mortgage needs to be federally owned or backed by a federal agency. Relevant federal agencies include:

• HUD
• USDA
• FHA
• VA
• Fannie Mae
• Freddie Mac

It’s pretty clear when your loan is HUD, USDA, FHA or VA. Fannie and Freddie back over 50% of the nation’s mortgages, but not all homeowners know or remember who backs their loan. You can check to see if your loan is backed by Fannie or if it is backed by Freddie.

Forbearance

If you are unable to pay your mortgage due to financial difficulties related to Covid-19, you can contact your mortgage servicer to request forbearance for 180 days. Forbearance allows you to pause or reduce your mortgage for that 180 day period. To be clear, this does not reduce the principal on your loan. You would still need to pay off the missed payments or the difference on the reduced payment in the future. You may apply for an additional 180 day forbearance if your financial situation does not improve by the end of the first 180 days. Your forebearance options may depend in part on your loan program. If you are concerned by impacts on your credit score, servicers must not report to the credit agencies a Borrower who is on an active forbearance, repayment, or trial period plan due to COVID-19 related hardship.

Foreclosure

If you are facing foreclosure due to existing loan challenges, your loan servicer or lender may not foreclose on you for 60 days after March 18th. The CARES Act forbids beginning either judicial or non-judicial foreclosure proceedings. The Act also prohibits finalizing a foreclosure judgement or sale during this period.

Still Confused or Need Help?

The Consumer Finance Protection Board offers a guide to Coronavirus mortgage relief options that gives advice and provides a lot more detail. They provide important suggestions like questions to ask your mortgage servicer. You may also find your nearest housing councilor by calling by calling (800) 569-4287. If you don’t have a federally backed mortgage and you are not able to pay your mortgage, you should still contact your mortgage servicer to see what options they may have available to you. Last, but not least be wary of scams. Unscrupulous Sleazeballs will try to take advantage of the current situation. Lean heavily on the advice of the CFPB.

In the last week, county and state government reclassified Realtors as “essential” workers. That means we can now show property. But let’s be honest, not all sellers want to invite buyers into their home right now. Not all buyers want to be going into someone else’s home. Quite frankly, as an agent I haven’t entirely wrapped my head around the idea of showing property. It’s ok to have concerns and to want to stay home.

It is also possible to stay safe at home and still “tour” some of our listings. Between videos and 3D tours, technology makes it a lot easier to see property while you aren’t even wearing pants. Check out videos and 3D tours for our listings below.

707 Puniawa Road, Haiku, HI

Nine acres in a quiet valley bounded by streams that come together at the edge of the property before running into the ocean. Two homes, two pools, an artist’s studio, an orchard, a kitchen garden, an off the grid power system and tremendous privacy. This property blends stunning natural beauty, sustainability and understated luxury. Intrigued? Check out the video tour below.

Sold in 2021.

1949 West Kuiaha Road, Haiku

Thirty-nine acres of pristine land with a deluxe barn, a story-book cottage and a small Christmas Tree Farm. Looking for a place for your horses? The property includes thirty acres of grassland with six gated paddocks, a round pen and a tack room.

Sold in 2021

886 Pakele Road, Wailuku

A restored 1943 Plantation Cottage set in a grove of soaring Coconut Palms right by the ocean’s edge. This place is a feast for the senses with the sounds of the ocean and rustling palm fronds, the smell of salt air and the stunning beauty of the Pacific. Take a 3D tour of the Cottage By the Sea. You can also check out this video for more sights and sounds from the property.

Sold in 2020

61 South Lanikai

As one of a couple of land listings that we have in our inventory, these lots are something that we could show pretty safely while keeping a healthy social distance. That said, we also realize some of our potential buyers may be staying at home on the mainland. This listing is actually three contiguous two acre lots. The lots have water and ocean views. Check out the video below.

Sold in 2020.

63 S. Lahaole Place Wailuku (Maluhia Country Ranches)

As another parcel of vacant land, this is another property that we could potentially show while practicing social distancing. This lot included 5.68 acres of land, big ocean and Haleakala views, gated access and underground utilities. You will be hard pressed to find this combination of views and land at this price point.

Sold in 2020.

In Person Showings and Other Resources

Contact the Maui Real Estate Team if you have questions on any of the properties above.

We realize that not all properties have good videos or 3D tours. If you see a property that is listed that lacks a tour or the video lacks important detail, let us know. We would be happy to look into the possibility of obtaining video of the property. Needless to say, if we list additional properties during the current pandemic, we will be leaning heavily on 3D tours and or video.

As mentioned at the top of this post, we are permitted to do showings. That said we are doing our best to stay at home. If the seller is amenable, we are willing to do showings under extraordinary circumstances. We will need to follow social distancing protocols throughout the showing. In the interim, we hope the videos and tours above provide a better feel for some of our beautiful listings.

March 26, 2020

With Maui under a stay at home order, I thought this might be an opportunity to get back into the swing of things with the blog. It is only appropriate to start these efforts by looking at the current impact of Covid-19 on Maui and the Maui Real Estate market.

What is the Current Impact on Maui?

As mentioned above, the Mayor of Maui County issued a stay at home order. The order closed non-essential business. Schools are shuttered through April 30th. Tourism is for all intents and purposes shut down. Last week, the governor requested that vacationers postpone their visits to Hawaii. Hawaiian Airlines made plans to stop long haul service to the islands. As a result, there was a substantial drop off in passengers flying in to Hawaii. The governor now requires residents and visitors flying from outside of Hawaii to quarantine for fourteen days.

This week, a number of the island’s large resorts announced that they would be closing their doors through the end of April. The fields of unused rental cars outside the airport are a surreal byproduct of the drop in visitors. Needless to say, the closures also idled a substantial chunk of the local workforce. This will be a tough time financially for quite a few Maui residents.

Fortunately, Covid-19 is not widespread on the island at this time. Local authorities reported the first case on island on the 14th of March. On Monday, the district health office began drive through testing in Wailuku. As of today, Civilbeat is reporting 14 cases on island. At this time, none of the cases locally stem from community transmission. Hopefully, the stay at home measures keep those totals low going forward.

What is the Impact to Date on The Maui Real Estate Market?

Needless to say, the Maui Real Estate Market has not been immune to Covid-19. On February 26th, there were 630 properties under contract on island. That was the highest number yet for this market cycle. As of today, the number of pending sales stands at 497 properties. This drop can be attributed to a variety of reasons.

First and foremost, a number of the properties under contract in February have since closed. There are still properties going under contract, but those numbers have dwindled. New pending sales are happening at a much lower rate than closed transactions. Last but not least, we are seeing some deals cancel. I don’t have accurate numbers, but anecdotally I am seeing a couple of cancellations happen on a daily basis.

Are We Showing Property Right Now?

Real Estate agents are deemed non-essential workers under the current stay at home/ work at home decree. While our local Realtor association has not mandated that we stop showings, they did recommend that all open houses, in person showings and caravans cease.  Even prior to the stay at home order, some sellers were opting out of showings. The best bet for those who really want to see a property is to inquire as to whether the property has a good video or 3D tour. For examples, check out our 3D tour of the Cottage by The Sea in Wailuku or this video tour of the Haiku Sanctuary.

Are Buyers Still Submitting Offers?

As mentioned above, we are seeing properties go under contract. Our office put one of our listings under contract today. There are some buyers putting in sight unseen offers. Our office received a sight unseen offer on a listing a couple of days ago. It will be interesting to see how much the stay at home order impacts additional contracts going forward. I have seen quite a few sellers decide to pull their listing off the market. Some of that may be due to the lack of opportunity to show their property. Some may stem from general concerns about showing their property.

During this period of social distancing, contracts can be put together without a face to face meeting. Docusign was already a key part of our day to day business prior to the pandemic. Buyers and sellers should be aware that they may also need to sign a Coronavirus Addendum. There is no standardized Coronavirus addendum for purchase contracts as of yet. That said, individual brokerages are creating their own addenda. Most of these addenda are a variation of a force majeure clause that allows for extensions or cancellation due to circumstances out of a buyer or seller’s control.

What About Deals That are Under Contract?

As mentioned above, we are seeing both cancellations and sales. While there are additional challenges, it is still possible to close a transaction. The biggest hurdles involve any contingency or contract term that involves visits to a property. A transaction typically includes a visit from a home inspector, an appraiser, and a termite inspector. Home and land sales will typically include a surveyor.

An unoccupied property is going to have fewer issues than an occupied property for third party visits. I have seen one e-mail from a home inspector this week indicating they are still doing inspections. That said, the inspector outlined new protocols including one that prohibits the buyer from attending the inspection. Title companies are trying to do as much of the signing as possible via docusign. In person signings that require wet ink signatures include social distancing measures. One local title company is even offering a drive through signing process.

Future Impacts and Updates

At this point, I think it is far too early to begin prognosticating about the overall impact that Covid 19 will have on the Maui Real Estate market. A lot of really smart economists are scratching their heads as to what the future holds. For that matter, there are a lot of really smart medical professionals and researchers trying to wrap their arms around controlling this pandemic. There is just a whole lot of uncertainty in our world.

I will try to take advantage of my time at home to keep providing updates on events on the island, the local real estate market and the overall real estate market. Contact the Maui Real Estate Team if you have any questions on the Maui Real Estate market. We are here to help. Until the next update, I hope everyone stays safe and healthy. Stay home and flatten the curve!

This is the place you think of when you dream of a home in Hawaii. The beautiful Pacific Ocean is a short distance away. Its sights and sounds providing a feast for your senses throughout the day. A lawn dotted with soaring coconut palms casting shadows as they dance in the trade winds. Lush, steep, vibrant green mountains create a stunning backdrop. The home itself is a classic 1943 Plantation Cottage. Meticulously maintained and updated with modern amenities, it makes for a charming and comfortable cottage by the sea.

The Cottage Details

The two bedroom/one bath cottage offers 846 square feet of living space. It lives larger than its size thanks to an open living and kitchen area, an indoor/outdoor bathroom and an enormous lanai area.

While the home maintains the charm of the era of its construction, modern conveniences abound. The original fir floors are beautiful. The plumbing and electrical are updated. The roof is new. The lanai uses Trex decking well suited to the ocean environment. HardiePlank siding replaced areas where the original wood siding showed signs of rot. New doors and windows open easily to bring in the trade winds. They include a large sliding door that opens up from the living room to the large lanai. When the trades don’t blow, central a/c keeps the home cool. The modern design kitchen features a gas range with a view that makes cooking a pleasure.

There is also a deluxe detached storage shed and a detached garage with laundry room.

The land

The lot is .64 acres in size. A narrow parcel of county land separates the property from the ocean. In addition to soaring Coconut Palms, the landscaping includes rock walls, lush gardens, a small orchard, bananas and an herb and pepper garden.

The location

Pakele Place is a quiet, dead end street with just a handful of homes. Under the radar, but beloved by those who know it. The location also offers incredible convenience. Downtown Wailuku is less than five minutes away. Concerts and performances at the MACC are just a few minutes drive. Sand Piles surf spot is right nearby. Kiting and windsurfing are 11 minutes away at Kanaha Beach Park.

The Lifestyle

Smell the salt air and listen to the sound of waves breaking along the shoreline as the sun rises over the ocean. Enjoy a meal with friends and family on the large lanai. Pick fruit in the orchard. Take a nap in a hammock under swaying palm trees. Soak in the hut tub under the stars. This is a property that will bring years of relaxation and enjoyment.

The Details

The list price for the cottage by the sea is $2,300,000. This property sold in 2019. Contact The Maui Real Estate Team for assistance with other properties.

We recently reduced the price on two of our listings. The properties located in Kula and Haiku respectively share something in common beyond price changes. Both homes exhibit the classic Hawaii Plantation Style. While the homes were built 83 and 144 years ago, the charm and appeal of this design style endures through today.

785 Kekaulike, Kula

This Kula Classic consists of a 1936 home on just over 3.1 acres with a separate cottage built in the early 1980s. The 1936 home features design hallmarks of the era including fir floors, double hung windows with counter weights, and crystal door knobs. Originally owned by a ranch manager, subsequent owners have done a fantastic job maintaining the home over the years.

A previous owner completed a substantial addition to the property in 2006 when they added a new master suite. Their contractor took tremendous pains to ensure that the addition was true to the style of the original construction. The bedroom has fir flooring that matches the rest of the house. The builder used double hung windows with counter weights that they reclaimed from a Plantation home in Wailuku. The bathroom has a clawfoot tub. The tiles from the master bath match the original bathroom tiles on the other side of the house.

The seller recently lowered the list price for this Kula classic to $1,530,000.

This Home Sold in 2019

555 Haiku Road, Haiku

Our listing at 555 Haiku Road is the oldest home that I have been in on Maui. The five bedroom, five bath home is situated on 1.2 beautiful acres with big mature trees, beautiful tropical flowers, citrus trees and bananas. Originally built in 1875, the home served as the residence of the Doctor for the nearby Pineapple Plantation. Most recently, it has been operated as a bed and breakfast. The old cliche that they don’t build them like they used to is certainly appropriate with this home.

The style of the era is evident both on a small scale and a large scale. The gracious front porch is both a gathering place, and a spot to enjoy the cooling trade winds. There is custom woodwork throughout the interior and exterior of the home. You just don’t see this type of craftsmanship with new construction.

Other features and materials include double hung windows, fir floors, crystal door knobs and a clawfoot tub in one of the bathrooms.

This classic and gracious plantation style home is now listed for $1,220,000. This home sold in 2019. Contact The Maui Real Estate Team with questions or with assistance finding an old Hawaii Plantation Style Home.