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Lenders screw Pahoa
#31
Yes, many people got caught in construction "only" loans. After the extended build time, by then the take-out loans they were once qualified for were gone with the lenders who offered them.

I agree lava 1 & 2 areas won't suffer as much as you'd think just because the lenders are fewer...at least there are some. Now it's the construction loan that's harder to get (a good one that is).

It's amazing how many cash sales we have experienced especially in lava 1. This has been for years now, yet during any trend. These sales help to keep things alive in these areas.
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#32
quote:
Originally posted by Wao nahele kane

Oh dude… I should have stayed asleep, you’re killing me over here.
Medicine man/ priest Scott,
While you’re running full speed for life to escape the "red stuff" down there in Lava zone 1 or 2.
Chew on this one a while.
http://en.wikipedia.org/wiki/Hurricane_Katrina
"At least 1,836 people lost their lives in the actual hurricane and in the subsequent floods"
"Preliminary damage estimates were well in excess of $100 billion, eclipsing many times the damage wrought by Hurricane Andrew in 1992"

Bigger storms are expected to come in the near future as forecasted by scientists, of that we can be assured and soon.
Financing and Insurance are still available from central Florida to Texas.

When are you certain that lava is going to cross 130? 200 years from now or tomorrow? Are you sure?
But wait...the Big Island produces very little in the realm of commodities and has very little business and or jobs.
Puna does not rate such attention from investors; accept the fact that the return on the potential investment is out weighed by the potential loss of the investment due to non-repayment by lack of industry and the meager threat of Lava.
If LZ1 and LZ2 were spanned along the southern coast of the mainland you’d be financed and insured with less trouble than one faces with regard to hurricanes.
Would you like me to "define" anything else for you?





E ho'a'o no i pau kuhihewa.

Why didn’t you finish the definition according to Wikipedia?
Sorcerer, magician, wizard or a professional in any field.
I like to think of myself as a construction professional.
And once again you compare the mainland with the BI...you will shortly find out that they are two different worlds[Wink]
If you think health care is expensive now, wait until you see what it cost when it’s free...now here come the taxes.....
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#33
quote:
Originally posted by Sandra A.
It's amazing how many cash sales we have experienced especially in lava 1.
Those sellers with no mortgage must be smiling now, here comes seller financing![Big Grin][Big Grin][Big Grin]

Aloha,
John S. Rabi, GM,PB,ABR,CRB,CM,FHS
808.989.1314
http://www.JohnRabi.com
Typically Tropical Properties
"The Next Level of Service!"
This is what I think of the Kona Board of Realtors: http://www.nsm88.org/aboutus.html

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#34
Well, check the Star-Bulletin tomorrow. There should be an article about this in there tomorrow. My big question remains, why is the Big Island singled out when other states have active volcanoes.

John Dirgo, R, BIC, EcoBroker, ABR, e-PRO
Aloha Coast Realty, LLC
808-987-9243 cell
http://www.alohacoastrealty.com
John Dirgo, R, PB, EcoBroker, ABR, e-PRO
Aloha Coast Realty, LLC
808-987-9243 cell
http://www.alohacoastrealty.com
http://www.bigislandvacationrentals.com
http://www.maui-vacation-rentals.com
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#35
quote:
Originally posted by jdirgo

My big question remains, why is the Big Island singled out when other states have active volcanoes.
Some of this may just be political desk pounding. Hawaii isn't the only place in the US with volcano hazard zones that impacts mortgages. Hawaii island is the only one with "Zones". Most other places simply have a single "USGS Volcano Hazard Zone" that encompasses the entire hazard area without separating it into zones. Additionally, many of these volcanoes are in areas that are not open to development such as national or state parks/lands. So mortgage companies don't deal with the volcano hazard since there are no properties that can be purchased.

Oh yeah, Hawaii's zones are more about Lava flow not just the erruption. Since Hawaii's lava is flowing, that's part of the equation, where others are just the danger of the eruption and following flow.
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#36
When Mount Rainier blows (this volcano is in the same state of readiness as St. Helens was) literally millions of people are in the path of the likely resulting mud flows. When I was taking classes in the planning department at the University of Oregon a classmate presented his preliminary research for his PHD on volcanic hazard assessment for the Cascade range and it was truly chilling. These mountains may be in remote areas but the effects when they inevitably blow will be felt in a very large area, far beyond the state and federal lands on their flanks. These are not shield volcanoes like ours are, they are the kind that go off with a big bang, liquifying solid rock and creating hot fast mud flows and flattening forests in a wide radius. There are outlying suburbs of Seattle and Tacoma which are actually more at risk of obliteration than a lot of lava zone 1 homes are.

The last point I want to make is these Pacific Northwest communities have collective populations of millions and many have no better emergency evacuation routes than lower Puna does. They are communities that have one road in or out like 130 that snake along narrow valley floors lined with hillside homes. Total evacuation of some of these communities was projected to take over 24 hours 10 years ago, and that was before the last building boom.

I don't think there is any justification for redlining lava zone 1, while still lending in these areas, but I think there is a collective desire to pretend that only exotic Hawaii and Alaska have volcanoes, everywhere else has "mountains".

Carol
Carol

Every time you feel yourself getting pulled into other people's nonsense, repeat these words: Not my circus, not my monkeys.
Polish Proverb
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#37
The difference in hawaii is, here there are historical (recent in geological times) flows that can be quantified to do an easy risk analysis. Lending like insurance is risk based. Premiums and interest rates should reflect the risk.

I would think one could get insurance and a loan.... at the appropriate rates considering the risk. Hard money lenders, owner financing and outfits like Lloyds usually step into these high risk areas as traditional lenders pull out.



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#38
The risks in the Pacific Northwest are well mapped and quantified by the disaster preparedness planners, and Mt. St. Helens went off very recently in geologic terms. Rainier, Hood, Jefferson, and Shasta are all in the same state of readiness as St. Helens was, with Hood and Rainier having large populations in harms way. It is only a matter of when, not if. If you doubt the potential power of Pacific Northwest eruptions just go to Google Earth and look at Crater Lake. That eruption took the whole top off of that mountain in one blast and was fairly recent in both human and geologic time scales.

Carol
Carol

Every time you feel yourself getting pulled into other people's nonsense, repeat these words: Not my circus, not my monkeys.
Polish Proverb
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#39
"If you doubt the potential power of Pacific Northwest eruptions just go to Google Earth and look at Crater Lake. That eruption took the whole top off of that mountain in one blast and was fairly recent in both human and geologic time scales."

I don't doubt the power, nor minimize the risk. Rates and acceptability of risk is determined by the lender and insurance companies who set those guidelines based on experience.

I am not in the northwest insurance market ... but I am willing to bet that the risks are properly quantified or disclaimed. Volcanic damage not part of the bread and butter homeowners, mud flow would fall under flood and outside of homeowners policies. Dollars to donuts impossible to get flood / mudflow coverage in those valleys.

If not the companies will fail the insureds will not be paid out if there is a major loss exceeding the companies reserves.

There is also a "re insurance market" that sets a majority of the standards as to acceptable risk as they spread the risk for insurance producers. If a company cant sell off a part of the risk, they wont take it in normal times, much less in hazardous areas.

I think the problem in zone 1 & 2 also hinges on the fact that we had so much cheap money propping up the aforementioned companies, that they allowed these areas to become overvalued in light of the risks ... making them even harder to mortgage or insure in todays climate.

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#40
Even if one has insurance, what happens if lava goes around your house, spares it from fire, etc. and obliterates any method (roads) of you being able to gain access to your house? Your insurance company isn't paying for new roads and won't pay you for your house since the house is still intact. You are not insured for loss of access! Your home value goes to nearly zero, and you abandon the property. The mortgage company is left with nothing. Because of the chance of this happening to a large area, you can understand why mortgage companies are declining to lend. It's risk vs reward. Those that will lend will require higher down payments and higher interest rates.

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