Hawaii Foreclosure Relief: 1,468 Homeowners Get $158M Wiped off Books
Foreclosure relief allows homeowners who bought at the peak of the house asset bubble to reduce the principal amount of their mortgages as if they had waited for the bubble to burst before buying. This allows them to stay in their homes paying on a smaller mortgage and allows the bank to reduce its foreclosure losses by avoiding the process of re-selling the property. The reduction in foreclosure sales helps sustain Hawaii sky high real estate prices, thus benefitting the large landowners' development schemes.
1,468 homeowners have received $158M in foreclosure relief from five banks and mortgage lenders. The average relief is $107K. 1,096 of the homeowners received relief from Bank of America.
An additional 213 homeowners have been approved for $40M in relief with an average value of $196K. 187 of these homeowners have begun making payments on their modified mortgages.
LINK: Hawaii Foreclosure Relief Printout
LINK: Federal Mortgage Settlement Results
LINK: Hawaii Foreclosure Information Center