Honolulu Fears an Increase in Foreclosures

Thousands of homeowners in the city of Honolulu are concerned about the new insurance payment notifications they have received. Shocked by the situation, they perceive how the insurance on their properties is increasing at the same time that the price of their homes is rising.

These high prices are forcing homeowners to face a tough dilemma between being unable to sell their properties quickly due to their high value or having to confront a harsh battle with a cruel foreclosure process for not having sufficient financial resources to pay these new increases in insurance.

Normally, homeowners in Honolulu could expect insurance increases of no more than 5% annually, but they were recently notified that the price of insurance for the year 2025 will increase by 164% and by 100% for the following year.

In light of this new situation, and concerned about the future of homeowners and the economy of Honolulu, city and state administrators, along with insurance company presidents, have met to discuss possible strategies they could implement to alleviate this new situation facing thousands of homeowners.

As expected, the situation is worrying for homeowners who do not have enough money to pay their insurance annually, as failure to do so on time will result in a fine or a lien on the property, which frequently leads to a foreclosure that causes even more harm to already affected homeowners.

Declared a serious situation for the city, the administration has issued an emergency order suspending certain laws while awaiting the issuance of new policies for the affected condominiums. However, the representative of Honolulu knows that this is a precarious measure, as their decision cannot last indefinitely and is a matter that pertains more to state entities than local ones.

And although improvements are expected, affected homeowners remain worried as they face insurance bills that are nearly impossible to pay and fear not having more resources to pay their existing mortgages, leading them to unwanted foreclosures.

Available foreclosures:

Honolulu: 150 homes available.

By Elías DaSilva | 22 de Noviembre de 2024.