Stop Foreclosure in Hawaii

 


How to Stop Foreclosure in Hawaii

For many residents of Hawaii, foreclosure is fast becoming a reality to most of them. They choose to foreclose the house and auction it so as to cut back on their losses. There are tons of reasons why a house or property is foreclosed ranging from corporate downsizing to divorce up to rising interest rates. Regardless of the reason, you can do something to keep your house intact.

  • Step 1
    The thought of just letting your house just be auctioned so as to be done with it is tempting. However, letting your house be auctioned off can severely damage you credit rating and would later on affect your capability to buy other items in the future such as a car or another house. A bad credit rating would even prevent the electric company from turning on your power without some sort of deposit. This will stay in your record for up to seven years.
  • Step 2
    Seek advice carefully. Make sure that the person you are getting advice from is someone who is knowledgeable and understands the process of foreclosures. Some may advise you to declare bankruptcy while other may opt to talk with your lender or house realtor. Regardless of the advice, it would be better to consult with a professional that knows foreclosure.
  • Step 3
    Banks lend money, not sell houses. Simply put, they lose income whenever a house is foreclosed. This means that as much as possible, they would like you to keep you house as well so that you will pay them the proper mortgage. This being the case, most banks and lenders are open to the suggestion of adjusting your mortgage. There are a couple of means to do this but regardless of what method it is, talking with your lender to arrive at a compromise should be your priority if you think you are having a hard time paying your dues.

Synopsis of Hawaii Foreclosure Laws

Judicial Foreclosure Available: Yes

Non-Judicial Foreclosure Available: Yes

Primary Security Instruments: Deed of Trust, Mortgage

Timeline: Typically 60 days

Right of Redemption: None

Deficiency Judgments Allowed: Yes

In Hawaii, lenders may foreclose on deeds of trusts or mortgages in default using either a judicial or non-judicial foreclosure process.

Judicial Foreclosure

The judicial process of foreclosure, which involves filing a lawsuit to obtain a court order to foreclose, is used when no power of sale is present in the mortgage or deed of trust. Generally, after the court declares a foreclosure, the property will be auctioned off to the highest bidder.

Non-Judicial Foreclosure

The non-judicial process of foreclosure is used when a power of sale clause exists in a mortgage or deed of trust. A “power of sale” clause is the clause in a deed of trust or mortgage, in which the borrower pre-authorizes the sale of property to pay off the balance on a loan in the event of the their default. In deeds of trust or mortgages where a power of sale exists, the power given to the lender to sell the property may be executed by the lender or their representative, typically referred to as the trustee. Regulations for this type of foreclosure process are outlined below in the “Power of Sale Foreclosure Guidelines”.

Power of Sale Foreclosure Guidelines

If the deed of trust or mortgage contains a power of sale clause and specifies the time, place and terms of sale, then the specified procedure must be followed. Otherwise, the non-judicial power of sale foreclosure is carried out as follows:

  1. The notice of intent to foreclose must be published once a week for three (3) successive weeks, the last publication to be not less than fourteen (14) days before the day of sale, in a newspaper having a general circulation in the county in which the mortgaged property is located.Copies of the notice must be mailed or delivered to the mortgagor, the borrower, any prior or junior creditors, the state director of taxation and any other person entitled to receive notice. Additionally, the notice must be posted on the premises not less than twenty-one (21) days before the day of sale.

    Said notice must state: 1) The date, time, and place of the public sale; 2) The dates and times of the two (2) open houses of the mortgaged property, or if there will not to be any open houses, the public notice shall so state; 3) The unpaid balance of the moneys owed to the mortgagee under the mortgage agreement; 4) A description of the mortgaged property, including the address or description of the location of the mortgaged property, and the tax map key number of the mortgaged property; 5) The name of the mortgagor and the borrower; 6) the name of the lender; 7) The name of any prior or junior creditors having a recorded lien on the mortgaged property before the recordation of the notice of default; 8 ) The name, the address in the State, and the telephone number in the State of the person in the State conducting the public sale; and 9) The terms and conditions of the public sale.

    Additional wording, as required by the State of Hawaii, may be found here.

  2. Up until three (3) days before the sale, the borrower may cure the default and stop the sale by paying the lien debt, costs and reasonable attorney’s fees, unless otherwise agreed to between the lender and the borrower.
  3. The sale, which may be held no earlier than fourteen (14) days after the last ad is published, is to be made at auction to the highest bidder.
  4. Any sale, in which notice has been given, may be postponed from time to time by public announcement made by the lender or their representative.

Where to go to for Foreclosure Help

Honolulu Field Office

500 Ala Moana Boulevard, Suite 3A
Honolulu, HI 96813

Phone: (808) 522-8175
Email: HI_Webmanager@hud.gov
Front office fax: (808) 522-8170
Back office fax: (808) 522-8194
TTY: (808) 522-8193

Jurisdiction: Hawaii, American Samoa, the Commonwealth of the Northern Mariana Islands and Guam.

Gordan Y. Furutani
Field Office Director
email: gordan.y.furutani@hud.gov

Office Hours: 8:00 a.m. to 4:00 p.m.
Monday through Friday

HUD Office in Guam

400 Route 8, FHB Building, Suite 302-A
Maite, GU 96910

Phone: (671) 472-7251
Email: HI_Webmanager@hud.gov
Fax: (671) 472-7247

Jurisdiction: Guam

Roque Mendiola
Housing Program Specialist
email: roque.e.mendiola@hud.gov

Or

email: gordan.y.furutani@hud.gov

Office Hours: 8:00 a.m. to 4:30 p.m.
Monday through Friday

Stop Foreclosure Early

Charter Financial Services
808-945-3366
1357 Kapiolani Blvd
Honolulu, HI

2B Enterprises
(808) 573-2214
128 Aliiolani St
Makawao, HI

Bank Of Hawaii
(808) 572-7242
5501 Pukalani
Makawao, HI

First Hawaiian Bank
(808) 572-7238
67 Makawao Ave
Makawao, HI

Valley Isle Mortgage Inc.
(808) 573-0022
3240 Old Haleakala Hwy
Makawao, HI

Shirley Suguitan Legacy Mortgage
808-268-0730
1999 Main Street
Wailuku, HI

West Oahu Community Federal Credit Union
(808) 682-4511
Shangrila St Bldg 1867
Kapolei, HI

First Horizon Home Loans
808-275-8000
1099 Alakea St Suite 2200
Honolulu, HI

Navy Federal Credit Union
(808) 253-7440
338 Kamokila Blvd Ste 104
Kapolei, HI

Wells Fargo Home Mortgage
(808) 573-4900
8 Kiopaa Pl Ste 101
Makawao, HI