Understanding the Honolulu Foreclosure Process

Going through the Honolulu foreclosure process can be a daunting prospect. But the reality is that Honolulu homeowners face foreclosures every day. Knowing how to handle and what steps are available to you can at least help prepare homeowners who might need to take additional action.

The laws around foreclosures are different according to the area and situation, but something everyone should know is how long they will have to move. 

Starting Honolulu Foreclosure

A Honolulu foreclosure is not started the moment a payment has been missed.  Even though a mortgage payment is missed and is then considered delinquent does not mean the bank is already starting the work to foreclose.  

After a missed payment, federal law protects a homeowner for one hundred and twenty days.  After this time period, the lender may start the process of foreclosure.

Any Honolulu homeowner facing foreclosure should use these few months to talk to their lender.  No lender wants to take away a borrower’s home. They want to find the best way to allow the homeowner to continue living in the home and continue paying on their loan.  If there is no resolution after this time period the lender can start a foreclosure.

Moving Out

Lenders may approach a foreclosure differently.  As long as eviction is not stated as part of the foreclosure process the homeowner can reside in the home.  They may be able to stay in the home until the foreclosure is complete and even until the home is sold.

The time frame it takes to complete a foreclosure can vary.  Depending on the area the homeowner lives in, how fast the lender is moving the process along, and even what type of foreclosure it is will impact this.  Some may make the process quicker, but in many instances, it is a long and drawn-out process.  

The important thing to remember is to read everything carefully.  Dates of when sales will happen and even evictions should be outlined.

Getting the Property Back

A homeowner that has found the money to pay back the mortgage may want to get their home back after a foreclosure.  Some areas allow for a redemption period. This is a time in which a homeowner may buy their home back from the bank or the new owner.  If the money can be paid to the new owner or the homeowner repays their debt to the bank they may obtain ownership again.

The rules for this redemption period are different in each state.  Some states are very strict and only allow homeowners a few days after a sale for this redemption period.  Others are more lenient and a homeowner may reclaim their property even a year later.  

Evictions

While ignoring an eviction is an option for a homeowner it is only a short term fix.  Most evictions will have a time period on them that the homeowner must abide by. If they are not out of the property by the end of that period an eviction suit can be filed.

This eviction suit can stop a homeowner from being able to go on to rent or even own property later.  It is best to pay attention to deadlines and try to leave the property when necessary. It is sad to leave behind a property due to a foreclosure, but it is important to be able to find new housing as soon as possible.

Foreclosures are not an easy process for anyone involved.  A lender does not want to foreclose on a borrower and will likely work to help a borrower find new terms for their loan.  If a foreclosure must take place the process is not immediate. There is a small window of time that a homeowner can pack their belongings and find new lodging before being evicted. 

If you find yourself in this situation, we can help. Call our team today to see how Dream Now Property Solutions can help you with your Honolulu foreclosure process.