According to an article from a Wednesday, May 13th posting to honoluluadvertiser.com, Isle Foreclosures rose 217% in April. Andrew Gomes states that while Hawaii’s foreclosure rates have risen, they are well below the national average of one filling per 374 households.
While there has been an overall consensus from local economists and foreclosure attorneys that foreclosures among the Hawaiian Islands are worsening, it may not be to the extent at which the research company RealtyTrac has been reporting. In recent weeks, concerns have been rising as to the methods by which the California based research company is arriving at their foreclosure figures.
RealtyTrac collects data from an estimated 90% of the United States population, reaching almost 2,200 counties nationwide. However the problem with the data that is being reported on foreclosures is that it may be counted up to three times in separate months. Foreclosures can be counted in three stages, first as a default loan, then as a trustee sales notice and finally as a real-estate-owned transaction. By incorporating all three levels into their Foreclosure tally, RealtyTrac leaves the possibility of including homes which were previously included in the foreclosure rankings at a different level, thus skewing the reported number of foreclosures on the Hawaiian Islands.
While RealtyTrac runs the chance of misreporting state foreclosure ratings, there is no defined way for correctly counting the number of foreclosures within a particular county or state. This makes RealtyTrac’s findings the most viable data for many individuals and organizations to reference, even though it’s finding are “debatable”.
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