Hawaii Foreclosure Prevention Efforts
For 2009, Hawaii ranked 15th among all states in foreclosure rate, an increase of 182.64% from the year before. Nationally, 2009 was the worse year for foreclosures in US history, with 2.8 million property owners receiving a foreclosure notice.
Hawaii’s foreclosures are handled both in and out of court. They are non-judicial when the mortgage contains a power of sale clause, otherwise foreclosures are judicial. Out of court foreclosures typically take six months while judicial foreclosures are finished in about eleven.
The process starts with a notice to the borrower that he is in default. At least 21 days prior to the sale, the copy of the sale notice is posted on the property and mailed or delivered to the borrower. The lender publishes the sale notice in a local newspaper once per week for three consecutive weeks, with the last publication at least 2 weeks before the day of sale.
Up to 3 days before the foreclosure auction the borrower may cure the default by paying off the mortgage plus costs and attorney’s fees. There is no right of redemption after the sale is confirmed. Hawaii allows deficiency judgments.
In June of 2008, Hawaii passed the Mortgage Rescue Fraud Prevention Act to protect Hawaii consumers from scam artists preying on distressed homeowners. It compels those who offer assistance to fully describe their services in writing. The act gives the homeowner the right to cancel the contract any time before the services are fully completed.
The Hawaii Housing Finance & Development Corporation offers these links to Hawaiians who need foreclosure rescue help.
Another source for assistance is The Hawaii Home Ownership Center, located in Honolulu, the site of many foreclosures:
Hawaii Home Ownership Center
1259 Aala Street, #201
Honolulu, Hawaii 96817
P: 808-523-9500
T: 877-523-9503
F: 808-523-9502
