Hawaii continued to see drops near or above 20 percent in new foreclosure lawsuit filings during March and April, according to the latest data from the state Judiciary.
The number of new foreclosure cases filed statewide plummeted 40 percent in March to 94 from 156 in the same month last year. That followed a 21 percent
decrease in April with
160 cases, down from 202 a year earlier. As previously reported, case volume tumbled 30 percent in February and 19 percent in January.
If the trend holds throughout the year, 2017 would become the fourth consecutive year with fewer foreclosures in state court, which is where all cases between lenders and homeowners have been handled in recent years after state lawmakers overhauled state foreclosure law in 2011.
Additionally, if the trend of double-digit decreases keeps up, this year could reverse what has been a diminishing rate in the size of case volume declines. In 2014, case volume dropped 39 percent, followed by a 12 percent drop the next year and 5 percent last year.
Through four months, or one-third of this year, foreclosures are down 27 percent. That compares with 6 percent at the same point last year.
Generally, fewer foreclosures are a reflection of a strong local economy, which is in its eighth year of expansion. Unemployment is very low, personal income is rising and home values are appreciating — factors that help homeowners keep current on mortgage payments or at least avoid foreclosure. Still, upending life events such as major illness, divorce and job loss can lead to home loss through foreclosure.
The figures from the Judiciary are largely cases filed by lenders against homeowners. But they also can include cases involving commercial real estate and cases initiated by condominium associations against homeowners who fail to pay maintenance fees or other assessments. Other kinds of foreclosure cases, including actions involving timeshare properties and some condo association claims, are typically done through an out-of-court process that is not counted in Judiciary data.