Foreclosure is a legal process in which a lender takes possession of a property due to the borrower’s failure to make mortgage payments. In Hawaii, foreclosure laws are governed by the Hawaii Revised Statutes. In this blog post, we’ll discuss the foreclosure process, its consequences, and how to avoid it in Hawaii, including helpful government links.
The Foreclosure Process
The foreclosure process in Hawaii typically involves the following steps:
- Notice of Default: If you fall behind on mortgage payments, your lender will send you a Notice of Default, which is a formal notification that you are in default on your mortgage.
- Notice of Sale: If you do not bring your mortgage payments up to date, your lender will send you a Notice of Sale, which is a formal notification that your property will be sold at auction.
- Foreclosure Sale: If the property is not sold at auction, it will become the property of the lender, who will then attempt to sell it on the open market.
Consequences of Foreclosure
Foreclosure can have several consequences, including:
- Damage to credit score: Foreclosure can significantly damage your credit score and make it difficult to obtain credit in the future.
- Loss of home: You may lose your home and any equity that you have built up in it.
- Difficulty obtaining future housing: Foreclosure can make it difficult to obtain housing in the future, as many landlords will check your credit history before renting to you.
- Legal problems: Foreclosure can result in legal problems if you owe more on your mortgage than the property is worth, or if there are liens or other legal issues associated with the property.
How to Avoid Foreclosure
Here are some tips to help you avoid foreclosure in Hawaii:
- Communicate with your lender: If you’re struggling to make mortgage payments, contact your lender and try to work out a payment plan or loan modification.
- Seek financial counseling: Seek the help of a financial counselor or advisor to help you manage your finances and avoid foreclosure.
- Consider a short sale: If you’re unable to keep up with mortgage payments, consider selling your home through a short sale, which can help you avoid foreclosure and minimize the damage to your credit score.
If you’re facing foreclosure in Hawaii, there are several government links that you may find helpful:
- Hawaii Department of Commerce and Consumer Affairs – Foreclosure Prevention: https://cca.hawaii.gov/hfic/foreclosure-prevention/
- Hawaii State Judiciary – Foreclosure Mediation Program: https://www.courts.state.hi.us/services/adr/foreclosure_mediation_program
- Hawaii Housing Finance and Development Corporation – Homeowners: https://dbedt.hawaii.gov/hhfdc/homeowners/mortgage-assistance/
Avoid Foreclosure by Selling Your Home Today
If you’re facing foreclosure, selling your home may be the best option. At Favor Home Solutions, we understand this is a difficult decision to make. We’re here to help you through the process and get you the best possible price for your home.
When you work with Favor Home Solutions, we will:
- Evaluate your situation and make you a fair, all-cash offer
- Close on the date of your choice
- Take care of all the paperwork
- Pay all the closing costs
- And much more!
If you’re interested in learning more about getting a free, no-obligation offer for your home, contact us today!