Hawaii’s foreclosure rate for December 2008 skyrocketed 238 percent, year over year, based on a report recently released by RealtyTrac. Read the entire article from the Star Bulletin.
It’s interesting to me that none of the press coverage I’ve read makes any mention of Act 137 which passed in June, and the connection between making it harder for homeowners to sell their distressed properties, and the increase in foreclosures. For a brief overview , and written Summary of Act 137, www.Kauai-ShortSales.com.
Pacific Business News reports that Hawaii is slated to receive $19.6M in federal funds to purchase foreclosed properties with the goal of creating affordable housing. Kauai’s piece of that pie is only $1.3M. So far, Kauai County Government has not been effective with Affordable Housing initiatives. Let’s hope this money is spent wisely, and truly does help those in need.
Where’s the money??? In September, I wrote a post on the Credit Crisis and a possible solution that would directly address distressed homeowners. Now it’s four months later and how many billions have been put into our financial market? Where’s the help to prevent foreclosures? It would cost less to implement solutions to help homeowners retain economic viability, than to foreclose and buy properties.
In Hawaii, local culture tends to respect authority and not complain. Many Kauai homeowners facing foreclosure were SOLD bad loans by unlicensed “professionals” who were not under any regulation or oversight. Rather than offer a solution to honest, hardworking homeowners it appears that the federal government is financing predatory investing by local Kauai County Government in foreclosed properties.
It usually costs less to prevent a problem, than to try to fix it! Maybe I’m oversimplifying things – but sometimes common sense can actually work!