Hawaii State Foreclosures Down 66% Under New State Law
According to the "Star Advertiser" Honolullu newspaper, "A 6-month-old Hawaii law continued to constrain the flow of foreclosures statewide in October, as a relative trickle of cases were initiated mainly through Circuit Court instead of a nonjudicial process through which most cases had been pouring prior to the law's enactment.
Real estate research firm RealtyTrac counted 427 Hawaii foreclosure filings last month, which was 66 percent fewer than 1,271 filings in October 2010.
Last month's count was the highest since the new law took effect May 5, but not by much. There were 414 cases in September, 413 in August, 390 in July and 344 in June.
The law initially prohibited lenders from proceeding with nonjudicial foreclosure against owner-occupants until a mediation program was available to borrowers. That program launched Oct. 3, but lenders as of Wednesday had yet to use the new nonjudicial process administered by the state Department of Commerce and Consumer Affairs.
The new nonjudicial procedure forces lenders to participate in a mediation program with qualified borrowers if borrowers so choose. Qualified borrowers are mainly homeowners who have resided in their homes for a minimum 200 days. Excluded from mediation are foreclosures brought by homeowner associations or brought against investors."
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