The easiest way to begin foreclosure recovery in HI is to contact your lender as soon as you are unable to make your payments on time. Lenders want the borrowers to keep their homes because foreclosure is an expensive process on which most lenders end up losing money.

Lenders therefore have an interest in exploring every possible option in the Hawaii foreclosure process, including forbearance, partial claim, payment modification and payment suspension. However, the fewer payments you are behind, the more options will be open to you.

There are three key actions to take in the Hawaii foreclosure recovery process:

1. Read and respond to any correspondence from your lender. These notices will contain important information on the foreclosure recovery process in Hawaii and pending legal action.

2. Raise money to make a missed payment. You may be able to sell assets such as a second car or jewelry, or a household member could take a second job.

3. Avoid foreclosure recovery scams. Many companies claim to be able to stop your foreclosure by charging you for information you could get for free. Others will require you to sign over the title to your house.

Action Steps
The best contacts and resources to help you get it done

Know how Hawaii foreclosure recovery laws will affect you

Laws on foreclosure vary considerably by state so you should be familiar with at least a summary of foreclosure laws before speaking to a foreclosure consultant. Hawaii homeowners should also read their loan documents to know what the lender can do if they can't make their payments.

I recommend: ForeclosureS.com provides the contact information for the Attorney General’s Office in Hawaii and links to specific legislation regarding foreclosure in Hawaii.

Get assistance with the Hawaii foreclosure process

There are housing counselors and online resources available to help you understand your options, assist you in organizing your finances and negotiate with your lender, if needed.

I recommend: DebtAdvice.org is a service provided by the National Foundation for Credit Counseling and allows you to locate housing counselors based on your zip code and search radius. The Department of Housing and Urban Development provides contact information for approved housing counselors in Hawaii that are available for free or very low cost.

Retain Hawaii foreclosure attorneys

If you are required to sign documents, you may need a foreclosure attorney. Hawaii attorneys that do not handle Hawaii foreclosures may be able to make a referral.

I recommend: Gary Robert in Lahaina has several practice areas, including residential real estate. Wagner Choi & Associates in Honolulu specifically includes Hawaii foreclosure law.

Watch out for mortgage recovery scams

The Federal Trade Commission warns that there are plenty of bad guys operating in the foreclosure recovery business who will take your money and provide no service. Some warning signs, according to the FTC: advertising terms like 'guarantee' and '97% success rate', upfront fees before services and company names or websites designed to make you think you're dealing with a government or nonprofit agency.

I recommend: Educate yourself about foreclosure recovery scams through the Federal Trade Commission. The FTC recommends you only seek foreclosure help from government sanctioned counseling agencies like the ones recommended by the U.S. Department of Housing and Urban Development or the federal Making Home Affordable program.

Tips & Tactics

Helpful advice for making the most of this Guide

• •  Consider refinancing if you have some equity in your home when seeking foreclosure help. Hawaii homes should have at least 10 percent equity for a reasonable chance at refinancing and your odds get better with more equity. However, you don't want to make the common mistake of simply taking out a new loan that will be just as difficult to repay as the original mortgage.
• •  Ask to speak with a manager when you contact your mortgage company about your home in Hawaii. Stop foreclosure actions by providing a brief, honest account of your financial circumstances and presenting some basic information, including your loan number, household expenses and recent pay stubs. Take notes, especially the contact information of the person to whom you are speaking, during the meeting.