FACE Hawaii challenges a wave of foreclosures

From the Honolulu Star-Advertiser

A local nonprofit organization comprised mostly of churches is calling on state leaders to do more to address the wave of home foreclosures washing through Hawaii. Faith Action for Community Equity Hawaii, or FACE Hawaii, released a report that advocates changing the local foreclosure process, including a right to court-supervised mediation for borrowers.

In the report, FACE encourages local banks to engage in more housing counseling outreach. However, nearly all – 97.5 percent – of Hawaii foreclosure notices published in November were from out-of-state lenders, FACE said. The group said too many families are engaged in an endless struggle with inaccessible mainland lenders.

Melba Amaral, a Kalihi Valley homeowner, said she has been trying to work out a delinquency with Bank of America for more than a year with little more than frustration to show for it. "We're at the mercy of the lender," she said.

Amaral said BofA rejected her for a loan modification because the bank said she failed to send in necessary documents. Amaral said she sent everything the bank requested but that the bank refuses to revisit the issue. So she retained a lawyer to help her keep her house. “I’m fighting tooth and nail for this,” she said.

The FACE report, titled “Facing Hawaii's Foreclosure Crisis: A Community Study and Call to Action,” said other states are strengthening their laws and requirements regarding foreclosures, and that Hawaii needs to follow suit. “Some cities have called for moratoriums on all foreclosures, others have enacted new and creative laws to give families more rights in the foreclosure process,” the report said. Read more…