When a homeowner fails to keep up with mortgage payments, the lender has the right to take possession of the property through foreclosure. However, under federal law, a mortgage servicer cannot commence these proceedings until the borrower is at least 120 days delinquent. This provides borrowers with the opportunity to work out another arrangement, like modifying or refinancing their mortgage. If you’re at risk of losing your home, a foreclosure attorney can help you explore alternatives. In the meantime, learn more about the subject with these frequently asked questions. 

Foreclosure FAQ

What is the difference between a judicial foreclosure and a nonjudicial foreclosure?

When a lender wants to foreclose on a property, they can take one of two avenues. In a judicial foreclosure, the lender files a formal lawsuit in court. If the court grants the foreclosure, the home is then auctioned to the highest bidder. In a nonjudicial foreclosure, which can be pursued when the mortgage includes a power of sale clause, the lender takes specific steps as outlined by state law to sell the home and ultimately recoup their money without ever having to go to court.

How can a homeowner stop foreclosure?

A homeowner can retain ownership of their property even after falling behind on mortgage payments in several ways. If the lender pursues a nonjudicial foreclosure, for example, the owner can reinstate the loan by paying all past due funds as well as any required fees and costs up to three days before the sale. If the terms of the mortgage allow such an arrangement, it may also be possible to stop a judicial foreclosure in the same way.

Can you take back possession following foreclosure?

Unfortunately, Hawaii doesn’t allow homeowners to repossess their property once the proceedings have ended. In other words, since neither type of foreclosure provides a right of redemption, you need to fight the process before it’s finalized. 

Do you need to hire a lawyer?

Although it’s possible to go up against the lender on your own, it’s wise to seek legal counsel when your home is at stake. A foreclosure attorney will help you determine how to proceed after evaluating the situation from all angles. Depending on the circumstances, your lawyer may be able to negotiate with the lender to stop the process altogether. Otherwise, an attorney will ensure the lender does not violate your rights along the way and, if necessary, represent you in court. 

If you’re behind on mortgage payments or any other financial obligations, turn to Greg Dunn, Bankruptcy and Debt Relief Attorney. Practicing out of Honolulu, this foreclosure attorney has helped locals overcome seemingly insurmountable hurdles since 1996. In addition to fighting foreclosures, he provides bankruptcy assistance and debt settlement services. To request a consultation with this foreclosure attorney, call (808) 524-4529 or reach out on his website.