HONOLULU (KHNL) - With the slowing economy and homeowners desperate to sell, it has become a buyer's market with island real estate.
One seller on the north shore is resorting to auctioning off his property to avoid foreclosure.
In 2005 some lenders were offering home loans with little scrutiny regarding credit scores or yearly income. It got one man in trouble after he bought property he couldn't afford.
It began with a loan that should have never happened. Three years ago Bill Young's house on Kauai drastically went up in value and he owned it free and clear. Mortgage lenders advised him to borrow money off of it.
"Don't borrow just enough to live on, borrow as much as you can and buy some spectacular beach house and then you will profit from the real estate market," said Home Owner Bill Young.
That spectacular beach house is on the north shore of Oahu, which Bill bought, then wanted to sell. He got an offer of nearly 2.2 million dollars, which he felt was too low. Now, 2 years and 3 escrows later, he is resorting to auctioning off the house.
"The advantage of auctioning is that I'll be able to sell it now and it will be closed in 45 days and I can move on," said Young.
Even though he will probably have to sell it at a loss, he feels he has no other option.
"I decided to auction my property now before foreclosure and before I have to worry about not making payments," said Young.
There is a positive side to Young's story. He was able to spend three years at a house with one of the most incredible views on Oahu.
"I'm thankful for the experience whether I make money lose money or break even."
Bill Young is realizing, owning this dream house could have turned into a financial nightmare.
"In my particular case they made a loan to me probably for a property I couldn't afford."
"I'd love to stay here but this property was never in my budget range."