Judicial Auction vs Bank-Owned vs Traditional

 

	Judicial Foreclosure	Bank-owned sale	Regular sale
How do I buy it?	Must win the in-person auction, have the auction approved at court confirmation, and get through an escrow process. No contract.	Could be an auction style or an offer situation.  Check with your Realtor for details. Bank contract or bank addendums added to standard contract.	Submit an offer on a standard Hawaii purchase contract form.
Do I need a Realtor?	No, but if you haven’t been through the process, you would be much better off with one.  You will need to compensate your Realtor directly.	No, but this is a lot to navigate so you would be better off with a Realtor.  Typically, the buyer’s Realtor is compensated by the seller.  Confirm with your Realtor.	No, but as always, you  would be better off with a Realtor.  Typically, the buyer’s Realtor is compensated by the seller.  Confirm with your Realtor.
Who removes the occupant if there is one?	You	Typically banks remove occupants prior to listing.  If they cannot remove the occupant, they will list it as occupied and then you are responsible for removal, but this is always clearly stated in the bank listing.	Negotiable.
Can I use a mortgage?	In some cases, but this is very risky. See FAQ for more details.	Some listings are cash only, some can use lending.  Clearly stated in the listing.	Some listings are cash only, some can use lending.  Clearly stated in the listing.
What if I find something wrong during escrow?	There are no options for exiting the transaction and no one to fix any issues.  If you don’t complete, you could lose your 10% deposit.	If there is a physical issue that will prevent lending, the bank may make the repair.  If not, and you’re still within your inspection contingency period, you should be able to exit the transaction and recoup your deposit.	Negotiable.  If you are still within you contingency period and choose not to move forward due to the issue, you should be able to recoup your deposit.
Will I be able to get title insurance?	Hopefully, but not guaranteed.	Sometimes banks know there are title issue, and if so they make that very clear in the listing.  Otherwise, yes, you will get title insurance.	Yes, unless otherwise noted.
Who pays for escrow, title insurance, etc.	You pay for 100% of everything.	The bank usually offers to pay for escrow and owner’s policy if you use their chosen escrow company.	This is negotiable but these fees are typically split between buyer and seller per the Hawaii Purchase Contract.
Are there restrictions regarding future sale?	No	Sometimes.  When bank-owned properties give “first look” to owner-occupants, and an owner-occupant buys the property before investors are allowed to make competing offers, the bank will typically prevent resale within the first year or so to prevent flipping.	Not usually.