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Loading ...In a span of two years, foreclosures have quickly been rising in Hawaii and have emerged close to levels attained in the most recent tightening of the housing market of the state since the middle of 1990s.
In a study made by RealtyTrac, a housing research company, almost 3,200 of Hawaii homeowners have been victims of the foreclosure crisis last year, indicating a soaring 230 percent from the previous year and nearly a 500 percent increase from 2006. Moreover, it is expected that one in every 29 Hawaii homeowners, which is almost 4 percent, shall go through foreclosure until the end of the year 2010.
Therefore, it is necessary that the state mend the damaging effects of the unrelenting foreclosure properties of housing properties by momentarily adjusting the foreclosure procedure, since this is important to the economic well-being of Hawaii.
This means that Hawaii homeowners who are experiencing foreclosure will have additional time and support to assist them in evading the loss of their property through a new Senate Bill 1623 presented by the Senate Majority Leader Gary Hooser in the state Legislature.
The main objective of the bill is to decrease the foreclosure situation in Hawaii which climbed the previous year and is predicted to keep on increasing along with the economic recession and weakened real estate market, even if the result of the bill can only delay foreclosures by one or two months.
The bill would forbid a lender from proceeding with the foreclosure process until they get in touch with a homeowner by either phone or in person that includes a proposal to examine their financial problems and alternatives to avoid foreclosure.
Moreover, lenders would also be asked to offer homeowners with a toll-free hotline in order to get in touch with a counselling agency endorsed by the Department of Housing and Urban Development. A lender can start the foreclosure procedure as soon as a homeowner receives a foreclosure notice via mail, but an extension will be given if the homeowner asks for a follow-up dialogue with their lender.
The Senate Bill aims to prohibit investor-owned units as well as concentrate on homes occupied by owners. However, a condition also compels lenders to send mail notices to homes marked for foreclosure, warning tenants that they will be given a 60-day eviction notification if they are renters.
The bill would be applicable to loans only prepared from January 1, 2003 up to December 31, 2008, and if the bill becomes a law, it would conclude on December 31, 2012.
