Big island news
Last month, the foreclosure database RealtyTrac released its market report for November. It found that foreclosure filings -- default notices, auction sale notices and bank repossessions -- were reported on 259,085 properties nationwide. Of these, 393 foreclosures were in Hawaii. There were 86 filings on the Big Island, 214 on Oahu, 19 on Kauai and 74 on Maui. Of the Big Island total, 13 were in Hilo, 10 in Waikoloa, 34 in Kailua-Kona, five in Waimea, seven in Keaau, 12 in Pahoa and one in Volcano. advertisement * That's about the same statewide as in October, when there were 103 -foreclosures on the Big Island, 197 on Oahu, 24 on Kauai and 71 on Maui. On the Big Island, 15 were in Hilo, one in Holualoa, one in Honokaa, six in Waikoloa, 44 in Kailua-Kona, three in Waimea, one in Keaau, one in Kapaau and 25 in Pahoa. A year earlier, in November 2007, there were just 113 foreclosures statewide, 41 on the Big Island. Nationwide, "foreclosure activity in November hit the lowest level we've seen since June, thanks in part to recently enacted laws that have extended the foreclosure process in some states, along with more aggressive loan modification programs and self-imposed holiday foreclosure moratoriums introduced by some lenders," James J. Saccacio, chief executive officer of RealtyTrac said. "There are several indications, however, that this lower activity is simply a temporary lull before another foreclosure storm hits in the coming months." Saccacio said delinquencies on loans not yet in foreclosure jumped to nearly 7 percent in the third quarter, a record high, according to the Mortgage Bankers Association. "More than half of the homeowners who received loan modifications to reduce monthly mortgage payments in the first half of 2008 are already delinquent on their loans again, according to the U.S. Office of Thrift Supervision," Saccacio said. "Many of these delinquencies could turn into foreclosures next year." Shanae Souza, vice president of the mortgage banking division at Bank of Hawaii, said there are many options for people having difficulties paying their mortgages. "The bank does not want to go to foreclosure. That is our last resort. It is expensive for us," she said. Souza noted it's possible to have payments postponed or to make adjustments to the loan, which can mean lower interest rates or stretching out payments over a longer period of time to avoid foreclosure. "Each case we are looking at individually," Souza said. Souza said Bank of Hawaii experiences a low number of foreclosures due to the bank's high standard of quality, conservative underwriting. She said people facing possible foreclosure should work with their lender's loss mitigation department and to be persistent, especially with national lenders. Heather Hedenschau, principal broker of Big Island Brokers in Pahoa, said she's limited in the amount of help she can offer someone facing foreclosure, because of the Mortgage Rescue Fraud Prevention Act, which passed in June. The law's intended to protect homeowners in financial difficulty from people wanting to steal their equity. But now Hedenschau can't talk to lenders on her client's behalf, she said, adding a bank is likely to put off foreclosure if they know the real estate agent is working hard to market and advertise the property. Hedenschau said before the law passed, she successfully sold eight homes for clients in danger of going into foreclosure. She said now the home's owner must speak with the lender and explain the efforts being taken to sell the home. "It's unfortunate. I do believe (Act 137) is going to single-handedly cause a doubling of foreclosures," Hedenschau said. "It did exactly the opposite of what it was supposed to do." Nancy Cabral, owner of Coldwell Banker Day-Lum Properties in Hilo, said her company is handling a lot of foreclosure properties. If there's a silver lining to the foreclosure cloud, Cabral said, it's that first-time home buyers are getting into homes that they wouldn't have been able to afford before. "We are seeing a real strong increase with our company with buyers right now," Cabral said. "We are having a lot more buyer activity than three months ago." |
