The Hawaii foreclosure process takes some time before you are required to move out of your home. If you are anticipating losing your home to foreclosure then there are a few things you should know and the time it will take for the bank to complete the process.
The Hawaii foreclosure process can take up to 1 year to finalize and be complete. The initial process may begin after you have missed 2 or 3 payments. In most cases, the bank will begin the process after they have missed the second payment by sending you a notice of default and filing this with the courts. Once this is filed, the initial process has begun. The bank will give you up to 90 days to work out a deal or a payment plan to get caught up on your payments. If you choose to allow your home to go to foreclosure then the bank will initiate an intent to sell the home at an auction with the courts. Depending on how backed up the courts are and how quick the bank will act on this it can take another 6 months before the home is scheduled to auction. You will receive a letter in the mail that tells you the exact date the property is scheduled to be auctioned.
When a home is scheduled to be sold at an auction this is the end of the Hawaii foreclosure process. If the home doesn’t sell at the auction it will belong to the bank until they can sell it on their own. The bank will do what they can to recover as much as possible for the cost of the loan they borrowed to you. However, the difference may be a liability that you owe. You may not show a foreclosure on your credit until the bank finally sells the home, which could take more than a year. You also will not know what the liability is to the bank until the home sells.