You might have missed your mortgage payments and now seeing an upcoming foreclosure auction and might be looking for ways to stop foreclosure in Hawaii. 

How to avoid foreclosures in Hawaii?

1- Can bankruptcy stop foreclosures in Hawaii?

To stop foreclosure in Hawaii, You need to understand the difference between chapter 7 and chapter 13. 

•  Chapter 13 bankruptcy in Hawaii

Under this chapter, you will be given a time of 3-5 years for making payments and to catch up on your home arrearage. It simply means that if the lender is pursuing foreclosures, they are given the order to stop the bankruptcy and you will get more time to be on top of your payments.

• Chapter 7 bankruptcy in Hawaii

This is a liquid bankruptcy option and is less exercise in general and potentially less pursued option as it means that you want the lender to sell your home but also this is a low-cost bankruptcy option because the trustee may sell your home. 

2- Load modification

Are you failing to make debt payments? And finding it hard and harder every time. Is there something that is preventing you to make payments? Before you find it hard to make the payment, it is wise to ask the lender for a loan modification to get some relief in installments. It won’t be easy for you to avoid Hawaii foreclosures if you don’t have the money to make the payment.

3- Reinstate your loan

Have you missed the payments? But now, you have cash or enough funds to make the previous or late payments. You can approach the lender and can ask him to adjust with previous payments and not take any legal action for this. In most cases, lenders happily accept this offer.

4- Repayment plan

In this plan, if a borrower failed to make some previous payments and now has the funds to pay the previous payments. In such a case, you can approach to lender and ask him to let you make previous payments slowly and continue with the regular payments. In this case, you have to agree on the lender for this and can easily make previous and current payments simultaneously. 

5- Forbearance agreement

Has something prevented you to make payments? Did you get sick, lose your job or go through a divorce, or something else that is impacting your financial situation? In such cases, this agreement helps you to make the payment slower and the lender gives you a grace period to make the payments.

6- Refinance

Interest rates have increased and you are finding it hard to make the payments. You must have made regular payments with rare payment issues. In such cases, you can start a fresh new lender for refinancing and the lender may be more willing to work with you. It may be hard when your credit score is negatively affected.

7- Sell your home to stop foreclosures

If you are not able to make regular payments, you can sell your home which will be the best option for such a situation. You will get money by selling your home and can buy a lower amount house or a house with a lower price range. Also, it will remove your burden of foreclosures and will not impact your reputation and credit.

8- Deed in lieu of foreclosures

If you are unable to make the payment, you can go for a deed in lieu of foreclosures. In this, you will have to hand over your deed to the lender and he will take over the property and you will don’t have to face any bankruptcy issues.

9- Short sale

Short selling means to go for selling your home for less than the amount you owe on the house people don’t go for auctions because it does not give you the appraised prices and lenders also go with short selling.

10- Free or low-cost foreclosure in Hawaii help

You may find that the Hawaii government wants you to stay in the house and provide you with some free resources to get the potential to make the payment. Under Hawaii’s Hawaii homeowner assistance fund, you are given free mortgage payment counseling or foreclosure mediation services. 

Can I appoint a legal representative to stop foreclosure?

Yes, you can contact a foreclosure advocate and it does not mean that you have to go to court for this. They are experienced advocates who can guide you on the complete process and ensure that your lender is not abusing the system in his way.

Conclusion

So finally, you got ideas about how to stop foreclosures. To avoid late foreclosures, maintain good relationships with the lender to avoid additional humiliating court costs. You have multiple options to exercise to stop foreclosures. Discussing with a foreclosure advocate would also be a favorable option for you if you are not in the condition to make further payments and have a better understanding of the course of action. We are from Hawaii Foreclosures a team of expert advocates to guide you on your present situation and to exercise the best solution accordingly.