Aircraft Accidents in Hawaii

The Hawaiian island are rich with natural beauty.  However, much of the terrain is rugged and remote and can cause difficulties with rescue when an accident happens.  Aircraft accidents in Hawaii are no exception.  Aircraft accidents happen frequently sometimes causing injuries and fatalities.

Aircraft accidents can be the result of many different factors including pilot error, mechanical failure or weather. 

By their very nature, airplane and helicopter accidents cause a tremendous amount of publicity and can also be very stressful for victims and their family members.  If you have been involved in an aircraft accident, contact an experienced attorney today to protect your rights. 
 Here is an list of select recent aircraft accidents in Hawaii. 

January 16, 2015.  Cessna 172N lost engine power and crashed into remote Halawa Valley on the island of Molokai.  Injuries but all occupants survived. 

September 24, 2014.  Piper PA25-260.  This type of aircraft is commonly used for agriculture or towing other planes such as gliders.  In this situation, the aircraft ran out of fuel and crash-landed into the ocean surf near the shore on the island of Oahu. No injuries. 

September 21, 2014.  Robinson Helicopter R44.  The helicopter sustained a hard landing on Oahu in a quartering tailwind.  There was substantial damage to the aircraft.  No injuries. 

September 13, 2014.  Eurocopter AS 350 B2.  Maui, Hawaii.  The helicopter's tail rotor struck an auxiliary power cart that was close to the aircraft causing substantial damage to the tail boom and rotor.  No injuries were reported. 

The remote Halawa Valley in Maui County, the island of Molokai where a recent airplane crash occurred.  

Hana Airport Upgrades

Hana is one of the most isolated communities in the state of Hawaii.  Most visitors arrive after driving the scenic 52 mile road along the north shore of Maui.  The current airport in Hana, Maui is rated only for aircraft with nine passengers or less.  In June, the State of Hawaii released $2.1 million dollars to improve the Hana airport and for the upgrade of other necessary facilities.  The project will allow the airport to accommodate aircraft carrying up to 30 passengers.  Department of Transportation Officials have not set a timeline for the improvements.

For more information on the story, click here.  Hana Airport Upgrade

How to Buy Foreclosure Property on Maui – Part 3

At a judicial foreclosure auction, you will be required to show the Commissioner at least 10% of your highest bid.  This means that if you intend to bid, you must appear with cash or a cashier’s check.  For example:  if you have calculated that your maximum bid for the property will be $100,000, you must show the Commissioner $10,000 cash or a cashier’s check for the same amount.  Experienced investors will bring several cashier’s checks of different amounts that total 10% of the their highest bid.  This technique ensures that you do not submit more money than necessary to an escrow account. 

If you are the highest bidder for the property, the Commissioner will take 10% of your highest bid, give you a receipt and open an escrow account.  Shortly after the auction, the Commissioner will file a report with the Court detailing the sale of the property and the auction to give the presiding judge enough information to decide whether to confirm the sale. 

A Confirmation Hearing will be scheduled after the auction for the Court to hear any opposition or argument regarding the auction and sale of the property.  It is common practice for the Court to reopen bidding at the Confirmation Hearing.  The Court is not required to reopen bidding so if you are intent on obtaining the property, you should bid at the initial auction. 

If you intend to bid on the property at the Confirmation Hearing and the Court allows additional bidding, you must bid at least 5% higher than the winning bid at the auction.  After the bidding process has concluded, the Court will typically confirm the sale of the property.  The proceeds of the auction will be distributed to the lender of the property who is owed money.  Any remaining funds will be distributed to other lenders with lower priority who have a claim to the property and also the former owner. 

Real Estate Short Sales on Maui

A short sale can be attractive for the investor, the lender and the homeowner. Short sales can also be complicated and risky for the ill-advised. 

There are several reasons why a homeowner might consider a short sale.  Typically the owner has encountered financial difficulties and has defaulted on mortgage payments.  An owner may consider a short sale if a buyer is available and if the lender agrees. 

Most mortgages have a due-on-sale clause which allows the lender to "call" the entire amount of the loan due if the owner sells the property.  In a short sale, the lender agrees to let you sell the property to someone else and accept less than the amount of the whole loan. 

Lenders will carefully evaluate if you just want to get out of your loan or if you are truly unable to make your mortgage payments.  To this end, mortgage companies will usually require some evidence of financial hardship before agreeing to a short sale.  If it appears that you are actually going to walk away from your mortgage and give up the house, despite the risks, a lender may agree to accept less than the original amount of the mortgage to recoup at least some of the money it has loaned you.  The foreclosure process can be time consuming and expensive, particularly in Hawaii, and smart lenders will try to avoid foreclosing on a property if possible, even if it means taking a loss on the loan. 

Homeowners should carefully consider the whether a short sale is appropriate.  A short sale will harm your credit rating.  Possibly as much as a foreclosure.  However, a short sale can also allow you to obtain another mortgage sooner than if your house is foreclosed upon.  Seeking legal advice may be wise if you have any questions at all regarding a short sale because unwary homeowners may still be required to pay the remainder of the loan. 

Homeowners also face the challenge of finding a buyer willing to purchase their property.  The short sale buyer is typically an investor who is willing to negotiate with a mortgage company and has the experience and funds necessary to make a complicated real estate transaction occur smoothly and quickly.  Attorneys who are experienced in foreclosures, short sales and other real estate transactions are often in contact with investors who may be willing to purchase a short sale property. 

Haleakala National Park's Economic Impact on Maui

The National Park Service has released a report detailing the economic impact Haleakala National Park has on Maui.  Almost 1.1 million people visited Haleakala in 2012 bringing in over 64 million dollars.  Visitors and residents alike know that the Park is an extraordinary place and is one of many natural resources on our island that generate tourism revenue. 

For more information on the National Park's impact on Maui click on these links. 

Maui Now Article on Haleakala's Visitors

National Park Service Information on Visitor Economic Impact

Home Prices Continue to Rise

A recent report indicates that home prices nationwide continue to rise.  Core Logic Home Trends

As locals to Hawaii know, homes in the 50th state are in short supply with sellers typically receiving several full priced offers for a property.  There is limited availability and high demand for houses under $500,000.

Some local real estate experts attribute the lack of inventory to the 2011 foreclosure law that forced many houses through time-consuming judicial foreclosures.  However, even though the time-line for some foreclosures has been extended, many lenders do not seem eager to foreclose and have left scores of delinquent homeowner in their houses without making mortgage payments.

The strange result of lower inventory and lack of follow-through with foreclosures is that prices are rising rapidly, pricing many potential homeowners out of the market while others are living rent free. 

How to Buy Foreclosure Property on Maui - Part 2

This post is Part 2 of a series on how to purchase foreclosed property on Maui.

When selling a property, a Commissioner must advertise the property in a newspaper of local circulation.  The Commissioner must also conduct open houses of the property.  The dates and times of the open houses will be listed in the legal advertisement.  An open house is your chance as an investor to perform due diligence and investigate how high you should bid on the property. 

Due diligence is particularly important when purchasing foreclosure properties because they are sold “AS IS.”  This term means that if the house has termites, structural damage or a serious mold problem you have no recourse after you complete the purchase and you should price your bid accordingly. 

Typically a Commissioner will hold two open houses of the property, however, some Commissioners will also arrange a private viewing for interested bidders.  When you have access to the property, take pictures, make notes and if necessary, take an expert with you to examine the premises. 

In addition to inspecting the physical condition of the property, you should also investigate the possibility of liens, back-taxes, homeowner’s associations arrearages, property encroachments and problems with the title.  A Commissioner may be able to give you some relevant information but will not be able to give you legal advice about the importance of this data.  If you have questions about the legal consequences, you should hire an attorney to guide you through the process. 

After you have completed investigating the property and have decided you want to purchase it, spend time with a calculator determining your maximum bid.  If you are the highest bidder, you will be responsible for all closing costs including the costs of escrow, conveyance and back taxes.  You should also consider the cost of repairs and improvements to the property. 

Do not bid higher than your predetermined maximum bid.  Many potential investors become excited with the thrill of an auction and bid more than they originally intended.  Savvy bank representatives will happily prey on your enthusiasm and counter your offer, trying to drive your bid higher. 

In the next part of the Foreclosure Investment Series we will discuss what happens in the judicial foreclosure process after the auction. 

How to Buy Foreclosure Property on Maui - Part I

Maui, like many other parts of the country, saw a significant reduction in economic activity after the Great Recession of 2009.  Although the economy is recovering, the housing market is still lagging and prices are much lower than they were before the downturn.  Many smart investors are buying on the dip in prices while calculating that the market will recover.  This series of blog posts will help you navigate the often confusing area of housing foreclosure and show you how to purchase property that is still within the foreclosure process.  Finding properties that are still within the foreclosure process can help diligent investors find lucrative investments at significantly reduced prices.  

In Hawaii, a foreclosure can be judicial or non-judicial.  A judicial foreclosure has oversight by the court and will go through a court process including a court hearing before the house is sold.  There are many statutory requirements for a non-judicial foreclosure and this process is only available in certain situations. 

As an investor, you should look for houses that are in judicial foreclosure.  There is no central database or clearing center that lists properties that are in foreclosure.  Although some websites list “foreclosed” or “REO” properties for sale, these houses are usually owned by banks who have possession of the house after the foreclosure process is complete.  Occasionally, the bank will offer the property at a reduced price but usually the price will be close to fair market value. 

To take advantage of significantly reduced foreclosure prices, you need to find properties that are still within the judicial foreclosure process and attend the actual auction. 

A property enters the judicial foreclosure process when a homeowner defaults on a loan and the lender files a lawsuit asking the court to auction the home to satisfy the debt owed.  Legal proceedings typically take a year or more.  When the court is ready to auction the property, a foreclosure commissioner is appointed to take possession of the property, conduct an auction and distribute the proceeds of the auction to those who are owed money. 

The commissioner will inspect the property, advertise the auction and hold open houses so that potential bidders can see the house and formulate a bidding price.  The commissioner will try to obtain the highest feasible price for the property in order to satisfy as much of the debt as possible. 

Hawaiian law requires that a Commissioner advertise an auction of a property three times in a newspaper of local circulation, thus giving the owner of the house and the general public notice that the property is to be sold.

In Part II of this Foreclosure Investment series, we will continue exploring how investors can find and take advantage of attractive foreclosure prices. 

Foreclosure law can be intricate and confusing.  Homeowners often hire an attorney to defend a foreclosure lawsuit.  Investors often also hire an attorney to help them purchase a property in foreclosure.  A local attorney experience in foreclosure law can represent you at an auction and bid for you, even if you are out of state.  

For an overview of Hawaii foreclosure law click on this link.  Hawaii Revised Statute Chapter 667 

Wills, Trusts and Estate Planning

Estate planning is important no matter what your age to make sure your goals are carried out after you die.  Proper planning with an attorney can also reduce taxes and help you prepare for important health care decisions in advance. 

Will

A will is a document that states your wishes about what should happen after you die.  The most important decisions are who receives your property and who will take care of your children.  If you do not have a will when you die, the state of Hawaii will make those decisions for you even if they are different than your preferences.  A will can make sure that you make your own decisions for your property and your children. 

It is critical to hire a lawyer to draft your will and other estate planning documents.  Estate planning laws are different in every state and unless your estate planning documents are drafted with special consideration to Hawaii specific laws, your plans for what happens after you die may not be carried out. 

Family arrangements vary widely and you should carefully consider if your situation needs special planning.  A prior divorce, step-children and civil unions will all have impacts on your estate plan.  It is also important to make a will if you want to leave property to friends or distant relatives since they may not otherwise receive anything. 

Trust

A trust can give someone the benefit of your property without actually receiving the property immediately.  You may give your property to a trustee when you die and the trustee will take care of the property while giving the benefit to someone you name.  For example, you may specify that your house should go into a trust, a trustee make important decisions about the house and maintain it while a favorite niece lives in the house.  This is just one scenario and there are many different kinds of trusts to accomplish your desires. 

Tax Planning

Another reason to plan ahead when you die is that your property may be subject to an estate tax.  Both the federal government and Hawaii impose a tax on your estate when you die.  Proper estate planning can reduce or avoid taxes on your estate. 

Living Will and Durable Power of Attorney

An Advance Health Care Directive combines a power of attorney for health care and a living will into one document.  This document allows you to specify who will make your health care decisions if you are not able to make them yourself.  If you have specific instructions for your health care such as what happens when you are in an extended coma or if you want to donate your organs when you die, the Health Care Directive can also state those. 

There are many powerful estate planning techniques available to accomplish your goals for your family and property after you die.  Proper estate planning with an attorney can give you peace of mind knowing that your wishes will be carried out. 

Click here to see the many statutes that govern Hawaii estate planning law.  Hawaii Uniform Probate code

 

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