State foreclosures fall slightly in June
BY Greg Wiles
Advertiser Staff Writer
The number of foreclosure filings in Hawai'i dipped last month, though its foreclosure rate remains among the top 20 states nationally.
Foreclosures were filed against 706 properties last month, down from the 816 filed in May, according to figures released by RealtyTrac, a California-based online marketplace for foreclosure properties.
While lower, the June number still is elevated compared with previous years. It also is further evidence of an economic downturn that has gnawed at consumer finances, producing increases in bankruptcies, business closures and unemployment.
The June foreclosure number was more than five times the 134 filed a year prior.
Hawai'i's foreclosure rate of one filing per every 718 homes in the state ranked as the 19th worst among all states. A year earlier, the state had the sixth-lowest rate at one filing for every 3,732 properties.
Looked at another way, one in every 718 Hawai'i homes in June had some sort of foreclosure action taken against it during the month.
In the worst state, Nevada, that worked out to one out of every 59 homes; in the best, Vermont, it was one out of every 28,312.
Nationally, the foreclosure picture worsened, with the number of filings increasing in June.
"In spite of the industry-wide moratorium earlier this year, along with local, state and national legislative action and increased levels of loan modification activity, foreclosure activity continues to increase to record levels," James Saccacio, RealtyTrac chief executive officer, said in a press statement.
"Unemployment-related foreclosures account for much of this increased activity, and the high number of borrowers who find themselves owing more on their mortgages than their homes ... represent a potentially significant future risk."
The RealtyTrac report also found:
RealtyTrac's data include default notices, trustee sale notices and repossession purchases by lenders. That means a homeowner losing his or her home at a foreclosure auction could be counted three times in different months — first when a default notice is issued, second as a trustee sale notice and then as the lender acquires the property in what's known as a real estate-owned transaction.
During June, RealtyTrac said there were 460 trustee sale notices, 155 default notices and 91 lender repossessions.
Some local foreclosure attorneys and real estate experts have questioned the accuracy of RealtyTrac's reports because the company includes commercial property in its count.
That has a significant impact in Hawai'i because of the large number of condotels and timeshare units, many of which have faced foreclosure.
Moreover, RealtyTrac doesn't collect data from some rural areas.
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