A triple-digit, year-over-year increase in statewide foreclosures in January left Hawaii with the highest back-to-back monthly total since 2005.

Despite a 15.1 percent dip in foreclosures from December, Hawaii foreclosures rose 286.4 percent in January to 1,302 filings from the year-ago 337, according to a report released today by RealtyTrac, an online marketplace for foreclosure properties.

In comparison, national foreclosures increased 15 percent to 315,716.

January's foreclosure rate of one filing for every 394 Hawaii households compares with the nation's rate of one in every 409. Hawaii ranked 11th nationally for rate of foreclosures, one spot below its worst-ever 10th place ranking in December. In the last two months, Hawaii has seen 2,836 foreclosures.

Fallout continued in regions where second-home and investment markets were once strong; however, high unemployment levels, a struggling economy and rising interest rates began to affect the market more, said Daren Blomquist, RealtyTrac's marketing communications manager.

Hawaii's foreclosure hot spots have broadened beyond investor and second-home neighborhoods and into local markets, Blomquist said. Worse yet, a 1,013 percent year-over-year rise in Hawaii's REOs, or bank-owned properties, indicates that more people have lost their homes, Blomquist said.

In 2009, most Hawaii foreclosure filings were in the earliest stages, giving homeowners an opportunity to save their homes or their credit, he said. Now, it's too late, Blomquist said.

“;These aren't just properties that are in trouble, these are people that have lost their homes,”; he said.

Rising REOs are a main contributor to falling prices, Blomquist said.

“;Other properties have to compete,”; he said.

While foreclosure rates for the neighbor islands continued to track above the national average, five of the state's worst ZIP codes for January foreclosures were on Oahu, including Kapolei, Ewa Beach, Waianae, Waipahu and Mililani. On Oahu, there was one January foreclosure for every 517 households.

“;These communities represent our resort and affordable-housing markets,”; said John Riggins, owner of John Riggins Real Estate in Leeward Oahu. “;Liar and no-asset, no-income loans were rampant in these ZIP codes during the last boom.”;

After the market turned, Riggins said, some second-home/investor owners walked away from rising interest rates. Locals in affordable communities were hit hard by the downturn in tourism, construction and state cuts, he said.

“;Some have simply given up,”; Riggins said. “;More needs to be done to educate them of their options.”;

In some cases, lenders may help homeowners keep their homes by adding missed payments to the end of the mortgage or reducing interest rates. When homeowners are unable to stay in their homes, Riggins said lenders may lower the mortgage balance and pay the sales cost or accept the deed in lieu of foreclosure.

While January brought some neighbor island relief, foreclosure rates remained high and homeowners experienced similar problems to Oahu, Blomquist said.

The Big Island, whose foreclosure rate was one in every 244 households, led isle foreclosures in January, RealtyTrac said. Behind Oahu's Kapolei, the Big Island's Kailua-Kona posted the second most foreclosures of any ZIP code in January.

“;Blame it on the vog,”; said Howard Dinits, a Realtor with Waimea-based RE/MAX Resort Realty. “;You can't see the ocean. Word has gotten out and the tourists don't want to come.”;

Waikoloa and Pahoa, once favored by investors, also landed on the list of Hawaii's top 10 neighborhoods for January foreclosures.

“;Locals can't find jobs,”; Dinits said, adding that distressed second-home owners must put their resources into their primary holdings.

One in every 263 Maui households experienced a foreclosure last month, according to RealtyTrac. Kihei and Lahaina were among the 10 worst ZIP codes.

One in 408 Kauai households was in foreclosure last month; however, no Kauai areas landed in the top 10 neighborhoods for foreclosure activity.