A mortgage industry association reports that Hawai'i was among 10 states with the worst foreclosure problems in the second quarter.

The state tied for ninth-worst for the percentage of home loans entering foreclosure between April and June, meaning 40 states had lower foreclosure rates, according to the Mortgage Bankers Association survey.

Some 1.31 percent of Hawai'i loans entered foreclosure in the quarter, representing 2,200 new foreclosures, the trade group said.

The figure closely mirrors foreclosures counted by California-based research firm RealtyTrac, which for the same three months said there were 2,206 foreclosure filings in Hawai'i.

RealtyTrac's figures have been questioned as to their accuracy because the company counts default notices that signal the start of a foreclosure as well as subsequent filings in later months, such as auction notices and notices of lender repossessions, that can suggest foreclosures are higher than they actually may be.

But because most foreclosures in Hawai'i are initiated outside the court system, RealtyTrac may miss many default notices and undercount foreclosure starts.

The Mortgage Bankers survey said there were 6,347 loans somewhere in the foreclosure process during the quarter, representing 3.78 percent of loans. By that measure, Hawai'i ranked 12th worst.

Hawai'i's best ranking was in the category of loans that were 30 days or more delinquent but not in foreclosure. By this measure, Hawai'i was eighth best at 5.84 percent, or 9,806 loans.

Nationally, the average delinquency rate was 9.24 percent, and foreclosure starts represented 1.47 percent of loans. There was no national average reported for all loans in the foreclosure process.

Nationally, the Mortgage Bank-ers survey covers an estimated 85 percent of all outstanding mortgage loans, excluding second mortgages, on property containing up to four residential units. There were 167,919 loans in the Hawai'i survey.