Soaring Number of Foreclosed Properties in Hawaii
For the second time in a year, Hawaii posted a tremendous increase in the number of foreclosed homes. In June, the foreclosure rate in the state rose by 427 percent. The number of foreclosure properties for the same month last year was 706.
But industry experts noted that despite the increase of foreclosures in the state, the total figures for distressed properties declined by almost 13 percent in May. Experts attributed the worsening foreclosure problem in the state to the continued deterioration of the real estate market and the tourism sector, combined with the increasing unemployment.
Market data showed that the total foreclosure filings in June rose by five times compared to the same month the previous year. Meanwhile, May foreclosure filings dropped by 110.
The June figures showed that one out of 718 houses in Hawaii received a foreclosure filing which earned the state the 19th position in the national ranking of states with the highest foreclosure rate.
Industry experts noted that the foreclosure activity in Hawaii in June was the highest in a year except for the numbers in March when the state foreclosure rate increased by 503 percent. They said that foreclosure activity in the state and some areas in the country continue to rise to record levels despite the moratorium, legislative actions in the local, state and national levels and intensified loan modification activity.
For the first six months of this year, foreclosure properties in Hawaii reached a total of 3,603, representing a 296.8 percentage point increase from the same period the prior year.
Experts said that many homeowners went into foreclosures because they lost their jobs or other sources of income. Adding to the problem is the growing number of borrowers who find their properties are worth less than the total mortgage they owed. They said that many borrowers who are underwater chose to walk away from their properties, thus adding to the growing foreclosure rate in the state.
Meanwhile, the slump in Hawaii’s real estate market has made it impossible for distressed homeowners to sell their houses. However, short sales have become viable option for them especially since the process is getting approved faster.
But industry experts said that the foreclosure activity in Hawaii will worsen further before it starts to get better, adding that 75 percent of sales in the state involve distressed property.
Related Posts:
- Foreclosure Properties Going Rampant in Hawaii
- Foreclosure List in Nevada Still Tops the Nation
- Bank REO Properties Up in June
- Glut of Bank Foreclosure Properties Expected in Nevada
- Foreclosed Homes in Hawaii Mostly Bank Owned
