Hawaii Foreclosures

Prevent Foreclosure

Whether you are currently facing or concerned about the possibility of foreclosure, this site is a helpful and credible source of information.  In addition to answering your questions about foreclosure in Hawai’i, you’ll find resources for foreclosure options or guide you through the process with better results.

Foreclosure is the last thing on anyone’s mind when buying a home, but know that it is often avoidable if you are proactive and communicate with the appropriate people.

We are here to make the dream of homeownership a reality for people and want to do everything they can to ensure that homeowners can afford to stay in their home.

Facing Foreclosure

ACTION STEPS
Facing foreclosure on your home can be an emotional strain, but there are steps that you can take even during the foreclosure process to avoid losing your home. Here are some steps you can take if you find yourself in the foreclosure process.
If you’ve missed one or more mortgage payments:

  • Take action right away. Your lender can offer options such as loan modifications or mortgage workouts that may result in a lower payment or reduced interest rate.
  • Open and respond to all mail from your lender. The notices you receive will offer advice on avoiding foreclosure. Later mail may include important notice of pending legal action.

If you cannot reach your lender or comply with a loan agreement:

  • If your loan carries an unusually high interest rate or requires a “balloon payment,” you may have been the victim of predatory lending. Contact a local financial institution to see if you qualify for a refinanced, fixed-rate mortgage.

If you have received a foreclosure notice:

  • Contact your lender to see what options they may be willing to offer. Understand that your financial institution wants to help you keep your home. Foreclosures cost lenders tens of thousands of dollars, drive down property values and damage the credit of the homeowners for years to come.
  • Contact your attorney.

HUD-approved counselors in Hawai’i.

If your home is worth less than you owe:

  • Walking away from a home is a drastic move that can have a devastating impact on your credit and leave your family with few housing options.
  • Know that the only way to regain the value of your home is to stay. Home values will recover, and in the meantime, you will have earned equity by making your payments.

Avoid foreclosure scams:

  • Watch out for questionable counseling companies who advertise that, for a minimal fee, they will hire a lawyer to defend the foreclosure in court or negotiate lender assistance on your behalf.
  • The Federal Reserve Board has also developed 5 Tips for Avoiding Foreclosure Scams
Foreclosure Alternatives

ACTION STEPS
There are steps you can take to avoid foreclosure on your home.
Prepare for job loss or unexpected expenses

  • To protect yourself and the investment in your home, experts urge you to begin saving. It is important to plan ahead and maintain a budget that accounts for all of your expenses and current income.
  • Review your finances and see where you can cut spending in order to make your mortgage payment. Look for optional expenses, such as cable TV, memberships and entertainment that you can eliminate. Delay payments on credit cards and other “unsecured” debt until you have paid your mortgage.
  • Even if your finances are tight, saving a small amount each week can create a buffer to help you hold onto your home in the event of a job loss or unexpected medical expense.

OPTIONS

Short Sale:
Short sale is a type of pre-foreclosure sale in which the lender allows the property securing a mortgage or deed of trust loan to be sold for less than the full amount due, and accepts the proceeds from the sale as payment in full.

Refinancing:
Refinancing is the paying off an existing loan with the proceeds from a new loan, usually of the same size, and using the same property as collateral. In order to decide whether this is worthwhile, the savings in interest must be weighed against the fees associated with refinancing.

Loan Modification:
A loan modification is an alternative to foreclosure for thousands of struggling homeowners.  There are several types of loan modification programs, so if you are considering applying for a loan modification, it is important that you understand the different types of loan modifications to help you in your negotiation process.  For homeowners who face losing their home, a loan modification is often the most effective way to avoid foreclosure.

Deed in Lieu of Foreclosure

Deed in Lieu of foreclosure (DIL) is a disposition option in which a borrower voluntarily deeds collateral property in exchange for a release from all obligations under the mortgage. A DIL of foreclosure may not be accepted from borrowers who can financially make their mortgage payments.

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