Hawaii situation guide · Updated November 2026

Wholesaling Short Sale Properties in Hawaii

Wholesaling short sale properties in Hawaii means contracting to buy a home for less than the loan balance, then assigning that contract to a buyer once the lender agrees. In Hilo, owners who owe more than the home is worth may welcome help. Approval takes time, and the rules around fees and licensing need care.

Lender approval neededForeclosure timing100% online mentorship

Get the free starter kit Book a free call

Call/Text818-532-0481

Let’s find your starting point

Explore the mentorship.

Request a free fit call to discuss your goals and whether the program is right for you.

The short answer

Can you wholesale a short sale in Hilo, Hawaii?

Yes, you can contract for a Hilo short sale and assign it to a buyer, but the lender must approve the price. No wholesaler-specific Hawaii statute was found, so check current broker rules and have a Hawaii attorney review the contract. Check current text of HRS Chapters 467 and 667.

A short sale happens when the sale price is below what the owner owes. The lender decides whether to accept less, and it can say no or counter. Your contract must say that approval is a condition of the deal. Read our short sale wholesaling guide and payoff statement guide.

Hawaii foreclosure timing shapes the pitch. HRS 667-22 describes a notice with a cure period of at least 60 days for nonjudicial foreclosure, and the notice mentions a dispute resolution program. Hawaii also allows foreclosure by court action. Our auction guide shows what comes next.

Short Sale Properties in Hawaii at a glance

Lender approval	Required before a short sale can close
Foreclosure paths	HRS Chapter 667 allows court action and power of sale
Cure period	HRS 667-22 lists at least 60 days
Wholesaling statute	No wholesaler-specific Hawaii statute was found
Conveyance tax	Paid by the seller under HRS 247-4
Hilo hazards	Flood and lava-zone issues can hurt value and insurance

The opportunity

Why short sales come up around Hilo

Hilo has older homes, storm and flood exposure, and owners who may carry loans larger than what the house would bring. A job loss, a divorce or a costly repair can push an owner behind. Some of them would rather sell for less than lose the home at auction. You offer a way out that also helps the lender avoid a longer path. A patient, honest approach matters because approvals can drag.

Underwater owners

Owners who owe more than the home is worth may need lender approval to sell.

Hardship cases

Job loss, illness or divorce can make a short sale the best exit.

Repair-heavy homes

Roof and foundation costs can push value below the loan balance.

Get the free starter kit See the mentorship

Lead sources

Where to find short sale leads in Hilo

Default notices. Owners who received a notice may be ready to talk. See our notice of default guide.
Court filings. Foreclosure filings can reveal owners facing a sale. Try lis pendens records.
Housing counselors. Counselors meet owners who need options and may refer them.
Direct mail. Letters to Waiakea, Keaukaha and Kaumana owners can start conversations. Use direct mail methods.
Local agents. Agents sometimes meet sellers who owe too much and cannot list the usual way.

Your exit

Who buys short sale properties in Hawaii

Buyers are often local investors and flippers who can wait through lender review and still close fast once approval comes. Tell them the timeline is uncertain and the price may change. Build that list with our cash buyer guide.

Have your buyer prove funds early. The lender wants a clean package, and a buyer who backs out can restart the process. Compare the exit against a deed in lieu when the lender refuses.

Book a free call

Step by step

How to start wholesaling short sale properties in Hawaii

Learn the loan. Get the balance, the lender, any second lien and the foreclosure status.
Document hardship. Collect proof of income loss, medical costs or other facts the lender asks for.
Value the home. Use the ARV calculator and Hilo comps.
Offer a number. Run the MAO calculator and add time and repair cost.
Sign with a condition. Make lender approval a condition and state that you may assign.
Send the package. Submit the contract, hardship letter and buyer proof of funds.
Close with title. Use an investor-friendly title company and confirm the lender’s payoff letter.

Your checklist for wholesaling Short Sale Properties in Hawaii

Make lender approval a written condition of the contract.
Ask whether second liens must also approve.
Never promise the owner a sale date.
Ask a Hawaii attorney whether the lender can pursue a shortfall.
Keep every approval letter and payoff figure on file.

A Hawaii example: a Hilo owner who owed too much

Loan balance	$430,000
Estimated market value	$365,000
Lender approved price	$345,000
Repairs needed	$25,000
Buyer price	$361,000
Assignment fee	$16,000

This is a worked example, not market data. A Hilo owner near Waiakea lost hours at work and fell behind. She owed $430,000 on a home worth about $365,000 and had received a default notice.

You signed a contract at $345,000 subject to lender approval and sent a hardship package. After three months the lender approved the price. A local investor, who saw the repair list, took the contract at $361,000.

You earned a $16,000 assignment fee. The owner avoided an auction, and she asked a Hawaii attorney whether any shortfall remained.

Hawaii rules to know

Foreclosure, fees and licensing in Hawaii

HRS Chapter 667 allows foreclosure by court action and by power of sale. HRS 667-22 sets a notice with a cure deadline at least 60 days out and mentions the mortgage foreclosure dispute resolution program. Post-sale redemption was not found in the text reviewed, so check current text. See our redemption guide.

No Hawaii wholesaler-specific statute was found, but HRS 467-2(1) excludes people in the brokerage business from the owner exemption. Do not collect fees from a stressed owner without legal advice. See our attorney guide and the deficiency judgment guide.

Learn it with a mentor

Navigate lender approvals

Short sales test your patience. Mentorship students send us their hardship packages and we help them tighten the numbers and the timeline.

See the course See the mentorship

FAQ

Short Sale Properties in Hawaii: common questions

Is wholesaling short sale properties in Hawaii legal?

No Hawaii statute aimed at wholesalers was found. A short sale needs lender approval, and broker rules in HRS Chapter 467 can still reach people who market contracts for pay. Check current text and ask a Hawaii attorney to review your contract and any fee.

How long does a Hawaii short sale take?

It varies by lender and file. Approvals can take weeks or several months, and a second lien can slow things further. HRS 667-22 describes a notice with a cure period of at least 60 days, but your timeline depends on the lender. Plan for delay.

Can the owner stop foreclosure with a short sale?

Sometimes. A short sale can end the case if the lender approves and the sale closes in time. Hawaii allows foreclosure by court action and by power of sale under HRS Chapter 667. Check current text and ask a Hawaii attorney about the timing.

Who pays conveyance tax on a short sale?

Under HRS 247-4 the seller is generally responsible for conveyance tax. HRS 247-2 lists rates per $100 of value and a higher schedule for some investor purchases of condos and single-family homes. Ask your title company how the tax is handled in a lender-approved sale.

Could the lender still pursue the owner after a short sale?

It depends on the lender’s written approval and the loan terms. Some approvals release the balance and some do not. The owner should get a Hawaii attorney to review the approval letter before closing, keep a copy, and check current Hawaii law on any shortfall.