The number of foreclosures in Hawaii dropped by half last year as lenders grappled with a state law that changed the way they could file nonjudicial foreclosures, according to new data from RealtyTrac.
Statewide, a total of 6,012 homes, or about 1.2 percent of all housing units, were in some stage of the foreclosure process in 2011.
That amounts to one in every 86 housing units, according to Irvine, Calif.-based RealtyTrac. That was a 52 percent drop from 2010, and a 33 percent decline from 2009.
Nationally, the number of foreclosure filings fell 34 percent from 2010, and 33 percent from 2009, RealtyTrac said.
“Foreclosures were in full delay mode in 2011, resulting in a dramatic drop in foreclosure activity for the year,” Brandon Moore, RealtyTrac’s CEO said in a statement. “The lack of clarity regarding many of the documentation and legal issues plaguing the foreclosure industry means that we are continuing to see a highly dysfunctional foreclosure process that is inefficiently dealing with delinquent mortgages — particularly in states with a judicial foreclosure process.”
While Hawaii has seen the number of foreclosures filed in court jump since the state mortgage foreclosure law, Act 48, took effect May 1, the overall number of foreclosure filings has been cut in half.
The Big Island had the highest foreclosure rate in the state in 2011, with 1,840 properties, or 2.3 percent of all housing units, receiving at least one foreclosure filing. That amounted to one of every 44 housing units.
Maui had the second-highest rate in the state last year, with 1,307 homes, or 2 percent of all housing units, receiving a foreclosure filing, followed by Kauai, where 424 homes, or 1.4 percent of all housing units, received at least one foreclosure filing.
On Oahu, 2,441 properties, or 0.72 percent of all housing units, received at least one foreclosure filing last year, RealtyTrac said.