Certified Shoreline
The shoreline as marked on the ground and as shown on a shoreline survey which has been certified by the Hawaii State Department of Land & Natural Resources under Hawaii Administrative Rules, Title 13, Chapter 222, entitled “Shoreline Certification.” The certification itself is usually done by a member of the Office of Conservation and Coastal Lands.
Deed
A signed document that transfers ownership of property from one party to another.
Deed of Trust
A three-party security instrument conveying the legal title to real property as security for the repayment of a loan. The three parties included in a deed of trust are the borrower, lender and trustee.
Default
A mortgage or deed of trust is said to be in default when the borrower fails to make the payments as agreed to in the original promissory note.
Deficiency Judgment
A personal judgment against the borrower for the remaining balances on the loan after a foreclosure sale.
Foreclosure
The forced sale of property pledged as security for a debt that is in default. Foreclosures can be judicial or non-judicial. Most foreclosures in Hawaii are non-judicial.
Free and Clear
“Free and Clear” generally refers to a title that has no mortgage or lien attached to it. Usually it means the homeowner has paid off the entire balance of the mortgage and now has no more outstanding debt on the property. It could also mean they paid for the property in full at the time of purchase.
HUD
HUD stands for the Department of Housing and Urban Development. With regard to real estate, the “HUD” or “HUD-1” refers to the document that describes all the different types of financial obligations from both buyer and seller as part of a contract to purchase real estate.
Judicial Foreclosure
A foreclosure that is processed by a court action.
Lien
A charge upon real or personal property for the satisfaction of a debt.
Lender
A person who lends money for temporary use on condition of repayment with interest (i.e., the bank, mortgage company, etc.).
Lis Pendens
A recorded notice of pending lawsuit.
Mortgage
A written pledge of property that is used as security for the repayment of a loan. Relatedly, the “mortgagee” is the beneficiary of the mortgage (the lender) and the “mortgagor” is the borrower.
Non-Conforming Structure
A structure or portion of a structure which was previously lawful but which is located within the shoreline setback as a result of subsequent beach erosion, or as a result of changes in the law relating to the shoreline setback.
Non-Judicial Foreclosure
The non-judicial process of foreclosure is used when a power of sale clause exists in a mortgage or deed of trust. A “power of sale” clause is the clause in a deed of trust or mortgage, in which the borrower pre-authorizes the sale of the property to pay off the balance on a loan in the event of their default.
Notice of Sale
A notice giving specific information about the loan in default and the proceedings about to take place. This notice must be recorded with the county where the property is located and advertised as stated in the security document or as dictated by state law.
Posting
To publish, announce or advertise by physically attaching a notice to an object.
Postponement
Postponement means to put off to a later time. In the case of a foreclosure sale, this is generally done by announcement at the original sale or by posting notices establishing the new date and time the foreclosure sale will take place. Postponing the sale generally allows the homeowner more time to successfully complete the short sale or acquire the funds for loan restitution.
Right of Redemption
A borrower’s right to reacquire property lost due to foreclosure. There is no right of redemption in Hawaii, but this may be available to you if you own property in other states.
Request for Notice
A recorded document requiring a trustee send a copy of a Notice of Default or Notice of Sale concerning a specific deed of trust in foreclosure to the person who filed the document.
Shadow Inventory
Shadow Inventory refers to the amount of unlisted bank-owned homes (REOs) that are not yet on the market as well as the homes in preforeclosure that are likely headed to a trustee sale and will become REOs themselves. These properties are lurking in the shadows because they are not currently on the local MLS listings for the public to see, however they must be sold sooner or later by the foreclosing mortgagee (lender). Why not just put them on the market now? Putting all this inventory on the market today would likely increase supply enough to bring down already dampened home prices, so the lenders have tightened the pipeline and will release these properties to the open market at a pace that they feel will help them recoup as much of their losses as they can. Many see this prolonged inventory of distressed properties as enough evidence to counter the early optimism of a housing rebound in 2011.
Shoreline
The upper reaches of the wash of the waves, other than storm and seismic waves, at high tide during the season of the year in which the highest wash of the waves occurs, usually evidenced by the edge of vegetation growth, or the upper limit of debris left by the wash of the waves.
Shoreline Setback
A state-certified line that runs inland from and parallel to the certified shoreline at the horizontal plane. The setback is used to determine the buffer area between the certified shoreline and a lot depth in which the homeowner may not build a home or other structure without obtaining required permits. Different islands calculate their shoreline setbacks according to different criteria. Oahu uses a fixed 40ft setback area in most places while setbacks in Maui and Kauai are calculated according to the most current research on local erosion rates.
Shore Protection Structure
A structure which may artificially fix the location of the shoreline, including but not limited to a groin, seawall, or revetment.
Kona Seawall
Short Sale
This is a sale where the homeowner (or mortgagor) owes more on the property than its current market value. They are ‘upside down’ or ‘underwater’. In the short sale, the investor or lender of the mortgage agrees to sell the property for less than the balance of the mortgage, i.e. they are taking loss and accepting a ‘short’ position of the mortgage. Usually a short sale is attempted as a way of avoiding a foreclosure. There are a lot of short sales on the market in Hawaii right now!
Trustee
A neutral party who advertises the foreclosure property for sale and conducts the auction to sell said property to the highest bidder.
Trustee Sale
An auction of real property conducted by a trustee. Also known as a Sheriff’s Sale.
Underwater or Upside Down Mortgage
These interchangeable terms describe a situation where the balance of the mortgage is worth more than the property in today’s market. Put another way, the owner has zero equity in the house as he owes more than its market value. A short sale or loan modification should be considered if the homeowner cannot keep up with current payments.