O'ahu's home foreclosure rate rose 68 percent in the first half of the year compared with a year earlier, but was still the fourth-lowest among large U.S. metropolitan areas.

Nationally, foreclosure activity has skyrocketed over the past year — particularly in California, Ohio and the Northeast — leading foreclosure rates to rise in 82 of the 100 metro areas surveyed by RealtyTrac, an Irvine, Calif.-based real-estate research firm.

The numbers have been rising as many consumers can't keep up with mortgage payments and face difficulty trying to refinance or sell their property as the housing market slows and prices in some areas drop.

O'ahu has maintained a low foreclosure rate thanks in part to relatively stable home prices and a strong job market.

Some 286 foreclosure actions were made against homes on O'ahu in the first half, up 68 percent from about 170 during the first half of 2006, according to RealtyTrac.

RealtyTrac, in its report released yesterday, said O'ahu foreclosure filings equated to one per 1,151 households — fourth-lowest among 100 major metro areas.

Median prices for existing homes on O'ahu were up 2.4 percent for single-family homes and 5.7 percent for condos during the first six months of this year compared with the same period last year, according to the Honolulu Board of Realtors.

Other factors for foreclosures include people who have lost their jobs, and those with poor credit who obtained adjustable-rate mortgages that are resetting with higher payments.

SUBPRIME PROBLEMS

Hawai'i's low unemployment rate has helped hold down foreclosures related to job loss, but the level of subprime loans in the local market has raised concerns about rising home losses.

The Durham, N.C.-based Center for Responsible Lending estimated that 20.6 percent of 8,300 subprime loans made in Hawai'i last year could result in foreclosures during the life of the loans — more than double the 7.9 percent subprime loan default rate between 1998 and 2001.

The Center for Responsible Lending also said Hawai'i's projected default rate is above its projected national failure rate of 19.5 percent for subprime loans issued last year.

Local foreclosure attorney Marvin Dang said he suspects O'ahu foreclosures are rising.

Dang said RealtyTrac's report is difficult to judge because it's an imprecise picture of mortgage defaults and home losses.

RealtyTrac counts a range of document filings through the foreclosure process, from default notices to auction notices and bank repossessions.

But the company's figures don't necessarily include every foreclosure action such as nonjudicial foreclosure notices that aren't recorded publicly. The figures also can include more than one foreclosure filing on the same property.

Dang said there is no feasible way to accurately count the number of O'ahu homeowners in mortgage default and facing foreclosure, adding that growing numbers of lenders are resolving defaults short of any foreclosure action.

"It may be that (RealtyTrac's) figures do not truly reflect the increasing amount of properties going into foreclosure," he said.

WORST AND BEST

RealtyTrac in its report said Stockton, Calif., had the highest foreclosure rate among the nation's 100 largest metro areas during the first half of the year, with one per 27 households. There were 8,169 total filings in Stockton, or three times as many as there were in the first six months of last year.

The lowest foreclosure rate was in Richmond, Va., where there was one filing per 2,319 households, or 213 in all.

The biggest rise in total foreclosure filings happened in New Orleans, where filings grew sevenfold to 2,178. However, 78 markets had higher foreclosure rates than New Orleans, where there was one foreclosure action per 267 households.

The biggest decrease was in Greenville, S.C., where foreclosure filings dropped 66 percent to 151. At one per 1,721 households, Greenville's filing rate was second lowest in RealtyTrac's ranking.

TIPS FOR FACING FORECLOSURE

The U.S. Department of Housing and Urban Development has tips for homeowners facing foreclosure:

1. Don't ignore the problem. The further behind you become, the harder it will be to reinstate your loan and the more likely that you will lose your house.

2. Contact your lender as soon as you realize that you have a problem. Lenders do not want your house. They have options to help borrowers through difficult financial times.

3. Open and respond to all mail from your lender. The first notices you receive will offer good information about foreclosure-prevention options. Later mail may include important notice of pending legal action. Your failure to open the mail will not be an excuse in foreclosure court.

4. Know your mortgage rights. Find your loan documents and read them so you know what your lender may do if you can't make your payments. Learn about Hawai'i foreclosure laws and time frames online at http://foreclosurelaw.org/Hawaii_Foreclosure_Law.htm.

5. Understand foreclosure-prevention options. Valuable information about foreclosure prevention options can be found online at fha.gov.

6. Contact a nonprofit housing counselor. HUD funds free or very low cost housing counseling nationwide. A list for Hawai'i can be found online at hud.gov/local/hi/homeowner ship/hsgcounseling.cfm. Housing counselors can help you understand the law and your options, organize your finances and represent you in negotiations with your lender if you need this assistance.

7. Prioritize your spending. After healthcare, keeping your house should be your first priority. Review your finances and see where you can cut spending in order to make your mortgage payment. Look for optional expenses — cable TV, memberships, entertainment — that you can eliminate. Delay payments on credit cards and other "unsecured" debt until you have paid your mortgage.

8. Use your assets. Do you have assets — a second car, jewelry, a whole life insurance policy — that you can sell for cash to help reinstate your loan? Can anyone in your household get an extra job to bring in additional income? Even if these efforts don't significantly increase your available cash or your income, they demonstrate to your lender that you are willing to make sacrifices to keep your home.

9. Avoid foreclosure-prevention companies. Many for-profit companies will contact you promising to negotiate a loan worked out with your lender. While these may be legitimate businesses, they will charge you a hefty fee for information and services your lender or a HUD-approved housing counselor will provide for free if you contact them. You don't need to pay fees for foreclosure-prevention help. Use that money to pay the mortgage instead.

10. Don't lose your house to foreclosure-recovery scams. If any firm claims it can stop your foreclosure immediately if you sign a document appointing it to act on your behalf, you may well be signing over the title to your property and becoming a renter in your own home.

Reach Andrew Gomes at agomes@honoluluadvertiser.com.