Hawaii foreclosure rate climbs by 218%

State rises to 36th in foreclosure rank STORY SUMMARY Hawaii's foreclosure rate tripled in April, with a 218 percent increase over the year-earlier period.

[hawaii kai]

wow I hope everything turns out fine in Hawaii!! Email me if you find a good bargain in Hawaii Kai. Looking for $45ok home. LOL!

[smallkine]

lucky you live Hawaii.

[Chemical All]

Should change the name Hawaii to Homeless State.

[herbert]

why don't people sell without profit before the bank fore close. Too many are investors not serious home owners.

[JAFO]

218%. Mainland is 1 of 2,381. Hawaii 1 of 519. ATA, Aloha & Weyerhaeuser is mostly the reason, in my opion. Another rice scare artical.

[CBR]

JAFO wrote:

218%. Mainland is 1 of 2,381. Hawaii 1 of 519. ATA, Aloha & Weyerhaeuser is mostly the reason, in my opion. Another rice scare artical.

You haven't seen anything yet. Just a Hawaii real estate primer: http://honolulu.oodle.com/housing/sale/forecl...
http://www.realtytrac.com/MapSearch/MapSearch...
http://www.oahure.com/UpsideDownSingleFamily....

[DevilDog]

Thanks, CBR. There's some good info on those sites.

Also, Hawaii is in a more precarious position than any other state because of our macro economy's almost total dependence our tourism, which is highly vulnerable to oil price increases.

Likewise, our consumers get hit at the grocery store and gas station everytime fuel charges go up.

[WestSide]

When a loan is given for a $600K++ home with no money down and shakey credit...what to expect?

I notice there are still plenty big pickups on the road at 9mpg. Again, what do people expect?

Thank heavens for the lessons taught to me by my Mother...a product of the Depression and WW2. "if you can't pay for it, you don't need it"

There are consequences for our actions.

[OmomoME]

What I don't understand is why people get caught up in "INTEREST ONLY" and "Adjustable Rates."
Whats wrong with doing it the old fashioned way, "FIXED Rates."

Unfortunately for many, they get suckered in to the idea of buying a home "without" fully understanding what it is that their signing.

who is to blame? The crooked mortgage companies who prey on these types of individuals/families and the consumer who just doesn't know enough of how the process works.

Ever heard of "measure twice cut once." When buying a home, read twice, three times, four then sign.

Don't let emotions over-rule judgement to make sound decisions.

[Oh oh]

You can thank your REALTOR (the one who made THOUSANDS (in commisions) off of you!

[Martin Turow]

This is just the beginning, so hold on to your seats. Hawaii will be the last market to correct because the prices of homes here were behind the mainland by a year or two; therefore the correction will be later than on the mainland. It boggles my mind to think that the median home price here is 640k, which is far above what most working families here can pay. I've been saying for a long time that they should rename Hawaii to Fantasy Island because that's what people are living here--a fantasy. People are living in homes that aren't even worth 250k, yet trying to sell them for 500k. It will take sellers a while to overcome their loss aversion and realize that their homes aren't worth what they think they are, so the downward pressure on home prices will be gradual, but make no mistake, it will happen and a lot of people are going to be taking a huge financial loss. Hawaii is not a diversified economy and combining that with absurd home prices was and has always been a total recipe for disaster.

[READ GOOD]

JAFO & CBR, you got the numbers the opposite: Hawaii is 1 in 2,381, Nationally is 1 in 519.

[Von in Aiea]

Molokai is looking better every day.

A few tents and a little food from the state and its paradise.

[leeward]

Hey Westside, I was taught the same, cannot pay for it, don't need it.

I was driven CRAZY a while back, multiple phone calls daily wanting to refinance. I had watched Suzy Ohrman (sp) when she said let them take the credit cards and cars but not your homes, never borrow against your home to pay bills. Before I stopped answering the phone I told one guy who sounded like he was calling from Tijuana, that I had no mortgage and he said I was a liar.

A place called Amber Financial called daily, I told them how stupid they were wasting their time once I said no. One day I was in Kapolei and there they were Amber Financial. One more call and I was going to go in that place and raise hell and say that since they disturbed me daily this was payback time. No more calls.

I think money management should be a required course in schools.
Plus, government wishes to control everything, why not these loan sharks.

[HIIslander]

OmomoME wrote:

What I don't understand is why people get caught up in "INTEREST ONLY" and "Adjustable Rates."
Whats wrong with doing it the old fashioned way, "FIXED Rates."
Unfortunately for many, they get suckered in to the idea of buying a home "without" fully understanding what it is that their signing.
who is to blame? The crooked mortgage companies who prey on these types of individuals/families and the consumer who just doesn't know enough of how the process works.
Ever heard of "measure twice cut once." When buying a home, read twice, three times, four then sign.
Don't let emotions over-rule judgement to make sound decisions.

I believe that the U.S. and Canada are the only countries that have that interest rate structure. Too bad it is illegal to get an offshore loan.

[HIIslander]

Von in Aiea wrote:

Molokai is looking better every day.
A few tents and a little food from the state and its paradise.

Dependance on the state is paradise?

If everyone had your idea there would be a water shortage in two hours.

[Lucky I dont Live Hawaii]

19 years I spet there trying to make it, worked my okole off, paid my taxes, paid my bills, volunteered when I could, never broke the law, and after my children were born made the absolutely correct decision to get out and buy a real home for them. Raising children in an "affordable" crappy condo building in Makiki or Salt Lake or wherever is not "paradise". All those greedy landlords that jacked rents so high that working parents couldn't afford even a slum in Waipahu will get what they deserve: foreclosure. A $165k house here with tons of natural beuty and things to do, good schools, etc.... it's a no-brainer really. I only miss one thing about Hawaii. Yep, the weather, thats it.. you can have my spot on the beach, you can catch those papio that I would have caught, park in the space I would have parked, it's all yours... I watched Oahu become nearly completely ruined in less than 20 years. PS. just so you know; I use a proxy server and anonymously re-directing my IP, I am not located in whatever town this board says my post is coming from....

[Chemical All]

HIIslander wrote:

<quoted text>
Dependance on the state is paradise?
If everyone had your idea there would be a water shortage in two hours.

How you calculate and figure that? You must be out of your mind!

[RaiderNation]

WestSide wrote:

When a loan is given for a $600K++ home with no money down and shakey credit...what to expect?
I notice there are still plenty big pickups on the road at 9mpg. Again, what do people expect?
Thank heavens for the lessons taught to me by my Mother...a product of the Depression and WW2. "if you can't pay for it, you don't need it"
There are consequences for our actions.

My grandfather taught me the same lesson. If you can't pay for it, you can't afford it. Amen to the older and wiser generation who paved the way before us. Too bad not everyone heeds their advice. Credit cards work great as a convenience tool but if you can't pay it off that month, don't buy it.

[Liberalism isadeath cult]

Martin Turow wrote:

This is just the beginning, so hold on to your seats. Hawaii will be the last market to correct because the prices of homes here were behind the mainland by a year or two; therefore the correction will be later than on the mainland. It boggles my mind to think that the median home price here is 640k, which is far above what most working families here can pay. I've been saying for a long time that they should rename Hawaii to Fantasy Island because that's what people are living here--a fantasy. People are living in homes that aren't even worth 250k, yet trying to sell them for 500k. It will take sellers a while to overcome their loss aversion and realize that their homes aren't worth what they think they are, so the downward pressure on home prices will be gradual, but make no mistake, it will happen and a lot of people are going to be taking a huge financial loss. Hawaii is not a diversified economy and combining that with absurd home prices was and has always been a total recipe for disaster.

Martin, There is a lot of validity to what you say however ;
1. The falling home prices certainly were what tipped the scale to start the foreclosures, currently however, interest only, teaser rate, liar loans coming due to reset are what is causing foreclosures not current market conditions.
2. I know of people with no income who bought seven or more homes hoping to flip them for big profit.
What is causing these people's homes to go into foreclosure is not falling home prices but the fact that the interest only low teaser rate is reseting after two years and the new rate is way to high.
Most of these homes were rented and the rent covered the low initial mortgage.
3. Don't feel sorry for the speculators, they will come out of this fine. Many speculators have pulled out every penny of falsely inflated equity from these homes in the form of home equity loans used to buy jetskis, SUV's, vacations, hot tubs, breast implants and even day to day expenses.
4.Home prices always seem overpriced, but if you are waiting for prices to be cut in half forget about it, people have been waiting for this for 30 years, not gonna happen.