According to RealtyTrac, Hawaii foreclosures plunged by 50 percent in July, compared to the same month last year. Why such a dramatic change? Yes, the economy has been improving, but there are a few factors in particular that analysts credit. First, unemployment has fallen significantly since July of last year. Second, property values are rising fast. Third, there’s a new Hawaii law that requires attorneys to check all documents required before filing foreclosure complaints in the courts, which is something you might have expected them to do in the first place, but evidently many did not.
Only 129 homes in Hawaii were in some stage of the foreclosure process this past July, which is only one home in every 4,030 housing units. That definitely puts foreclosures back in the rare category. Thanks to new federal regulations, homeowners have more options when facing a potential foreclosure situation, but falling unemployment is probably the best sign overall as to the health of the state, and the nation.
The rising property value trend is more crucial than you might first assume. Now, many home owners dealing with financial hardship can sell their properties at a profit rather than dropping into a short sale. Knowing that your Maui property value is high should be reassuring whether you have financial troubles or not.
The law requiring attorneys to check all documents before filing requires them to also file an “attorney affirmation” with their judicial foreclosure complaint. The affirmation simply states that all the information in the foreclosure complaint is accurate, meaning the attorney has to be certain that all the information is in order and correct before submitting the complaint.
As for the rest of the nation, foreclosures fell 16 percent in July, year-over-year. That’s a big step for the rest of the country, but Hawaii real estate is clearly much more secure than the national average. It’s great to watch as the future unfolds with change for the better. Mahalo for reading this week!
RealEstateMauiHawaii.com – By Mark Harbison