Bank of America    has started sending letters to homeowners in Hawaii and 48 other states that offer to forgive part of the principal on their mortgages as part of a $25 billion settlement with the nation’s largest banks over abuses in mortgage servicing and foreclosures.

The New York Times reports the amount being forgiven averages $150,000 per homeowner, and that Bank of America (NYSE: BAC) said it could mean a monthly savings of up to 35 percent on a mortgage payment.

The Times reports Bank of America plans to contact more than 200,000 homeowners that may qualify for the reduction by the third quarter of this year.

Pacific Business News
Date: Tuesday, May 8, 2012, 6:51am HST

The Federal Housing Finance Agency has issued new guidelines requiring servicers of Fannie  Mae and Freddie Mac loans to speed response to short sale requests The guidelines would require the servicers to acknowledge receipt of short sale purchase contracts within three business days, to respond to short sale requests within 30 days and to make a  decision  within 60 days of receipt of offer. We are hoping this will help to streamline the short sale process.

This awesome 2 bedroom 2 bath condo of 1197 sq. ft. is just steps from the pool area. Lowest priced Condo in Keauhou Punahele, at $269,000 FS, It is priced to sell! New carpet and paint, and low maintenance fees. Don’t miss this one! Call Delania at 808-989-3227 for showings.

            Hawaii Paradise Properties will be taking place in the National Open House this weekend. There has been a lot of buzz about this event and we expect to see many  buyers out and about. If you are looking at homes this weekend, be sure to stop by and see us, we’ll have two properties open on Saturday and Sunday from 12-5. You can visit us here: Ilio Holo Kai and Keauhou Punahele. If you have any questions feel free to call Delania 808-989-3227.

Four bills are being considered by  the Hawaii legislature that target off-island  owners of vacation rental properties. Senate bills (SB2078, SB2089) and House bills (HB1706, HB1707) require off-island owners of vacation rental properties to turn over the management of their rental property to some form of on-island licensed real estate broker or salesperson, managing agent, rental agent, or condominium hotel operator. Curiously, local, on-island owners of vacation rental properties are exempted from the bills and their provisions.

It is noted that the reason for this proposed legislation is for tax compliance, but where is the proof that there is not currently tax compliance? Where is the data coming from? If this law does somehow pass, how will that affect off-island folks who intended to purchase vacation rental properties here? Will they decide that it would serve them best to go elsewhere? With the available internet sites which assist owners in vacation rentals, why do they need a local management company, which will be just another expense?

I for one, am hoping this bill does not pass. If it is not broken, don’t fix it.