A community-driven guide to preventing foreclosure
Partners: Lahaina Community Land Trust & Hawaiʻi Housing Resilience
Aloha mai kākou,
The guide you’ll find below is an offering to the Lāhainā community — specifically, homeowners who are faced with the burden of keeping up with mortgage payments on top of balancing the many financial challenges that have come with the post-fire recovery.
Our intentions were to create a culturally sensitive, community-driven resource to mālama and empower Lāhainā homeowners navigating difficult financial situations, prevent foreclosures and, when that’s not possible, ensure those homes stay among the Lāhainā community.
This guide is a labor of love by community members from Lāhainā and across Hawaiʻi who share the same goal: keeping Lāhainā homes in Lāhainā hands. If at any point in using this guide, you have questions, concerns, or feedback, please feel free to reach out to the people below.
If you’re not a Lāhainā fire survivor and want to help make more projects like this possible, we invite you to support our work at the links in the green “Take action!” section of this page.
Me ke aloha,
Hawaiʻi Housing Resilience is a Lāhainā-based nonprofit created after the Maui fires to empower homeowners with financial coaching, cultural respect, and long-term tools to stay rooted in Hawaii.
Contact:
Ethan Kaleiopu
Lahaina Community Land Trust was created by Lāhainā advocates after the fires to keep Lāhainā lands in Lāhainā hands through grants to rebuild and protect land, and build homes within financial reach that are permanently protected for local families.
Contact:
Autumn Ness
Kaheāwai Media
equips communities across Hawaiʻi to shift narratives, build capacity, inspire action, and create systemic change through collaborative journalism, media education, and civic action.
Contact:
Tyler Sonnemaker
Why trust us?
HHR and LCLT are led by Lāhainā community members who deeply understand their community and what homeowners are facing — many have firsthand experience with losing their own houses and/or navigating foreclosure. They are local housing advocates, realtors, financial advisors, attorneys, and other experts who joined these organizations to offer those skills in service of their community.
Kaheāwai Media is collectively stewarded by community-based leaders across the pae ʻāina who share our communities’ values, and we partner directly with groups like HHR and LCLT to cultivate lasting relationships and create resources that equip people to take action.
How to use this guide
This guide focuses on steps homeowners can, should, or must take if they’re at risk of falling behind on mortgage payments (or already have). While this guide is NOT legal advice, we have researched this information carefully, and we can help connect you with attorneys if needed.
General tips for keeping financially afloat:
- Reach out to Hawaiʻi Housing Resilience: HHR is run by a team of caring, supportive, and judgment-free housing experts FROM Lāhainā who can (and want to) help you understand the complex process and jargon, navigate your options, and advocate on your behalf to lenders. At any point in this process, we encourage you to give us a call to discuss your situation and see how we can help.
- Seek help early and over-communicate: we acknowledge how hard it can be to ask for help, especially with something like this. However, the sooner you get in touch with your lender (and/or HHR, if you choose to contact us), the more options you have and the more likely you’ll be to get back on track and keep your home. We WANT to help you keep your home and ʻohana intact. Asking for help is a sign of strength — not weakness, failure, or shame.
- Have honest conversations with your ʻohana now: topics like who holds the title to your family home, who’s on the will, and what debts they owe can be difficult and emotional topics to discuss with loved ones. However, discussing hard topics now may save your relationships (or your home) if it means not being forced to have those conversations in the wake of a death, emergency, or legal deadline when emotions are running even higher.
- Lean on someone: navigating financial hardship can be emotionally difficult, and we encourage you to turn to others for support, whether your ʻohana, community, or groups like HHR and LCLT.
Click the option below that most closely matches your situation to jump directly to that section of the guide.
What’s your situation?
How to navigate each phase of the foreclosure process
Early stages of financial challenges
What’s happening:
You’re worried about whether you’ll be able to pay your mortgage payment this month, but haven’t missed a payment yet.
What actions to take:
You should review and re-prioritize your budget and cash flow.
Why: Simple steps like moving your credit card due date or using retirement accounts may boost your cash flow enough to help you make your payment.
You should contact your lender to ask about relief options.
Why: The earlier and better you communicate with your lender, the more flexible and generous relief options they’re likely to offer.
You should contact HHR for help with budgeting, cash flow, and relief options.
Why: The earlier you reach out, the better we can help you.
Who can help & how:
HHR can help you understand, evaluate, and navigate your options, whether re-prioritizing your budget, improving cash flow, getting financial assistance, or refinancing your loan.
LCLT may be able to connect you with financial assistance or grants to rebuild that also ensure your land stays in Lāhainā hands for future generations.
Additional resources:
Kaheāwai Media | How to talk to your lender
Maui County | Hoʻokumu Hou
HI State Judiciary | Maui Self-Help Center
HUD | Avoiding Foreclosure
DBEDT | Homeowner Assistance Fund
DCCA | List of HUD-approved housing counselors
Aloha United Way | 2-1-1 Hawaiʻi helpline
Expecting to miss 1st mortgage payment
What’s happening:
You know you’re not going to be able to pay your next payment.
What actions to take:
You should contact your lender to notify them and ask about relief options.
Why: The earlier and better you communicate with your lender, the more flexible and generous relief options they’re likely to offer.
You can make a partial payment.
Why: When you make a partial payment, lenders may be more likely to give you more time to catch back up before they pursue foreclosure.
You should contact HHR for help navigating relief options and planning your next steps.
Why: HHR’s hui has lots of experience dealing with these exact situations — both personally and professionally.
Who can help & how:
HHR can help you understand, evaluate, and navigate your options, whether helping you talk to your lender or determining the right partial payment amount to make.
LCLT may be able to connect you with financial assistance or grants to rebuild that also ensure your land stays in Lāhainā hands for future generations.
Additional resources:
After missing 1st mortgage payment
What’s happening:
You’ve missed a payment.
Your lender must attempt to contact you by phone within 36 days (and again every 36 days after that) to discuss relief options, and notify you in writing within 45 days about options.
What actions to take:
You should contact your lender ASAP to ask about relief options.
Why: Federal and state laws guarantee certain relief options, but unless you ask, your lender may not proactively offer those options.
You should act within 5 days of missing a payment (or 15 days at most).
Why: Lenders often have 5-15 day grace periods before charging late fees. After 30 days, they’ll report it to credit bureaus, which can hurt your credit score for up to 7 years.
You should pursue relief options, such as loan modifications, forbearance, reinstatement, redeeming your property, etc.
Why: These options can help you prevent foreclosure entirely or give you more time to catch up on payments.
Who can help & how:
HHR can help you understand, evaluate, and navigate your options, including determining which loss mitigation option makes the most sense for you.
If you decide you can’t keep up with payments and selling is the best decision for your ʻohana, LCLT can offer to purchase your property with a Right of First Opportunity (ROFO) giving you the first opportunity to purchase the home we build. If you don’t, we’ll offer it to another Lāhainā ʻohana and protect it for the Lāhainā community forever.
Learn more
Additional resources:
FHFA | Loss Mitigation
After being behind on payments for more than 120 days*
What’s happening:
Your lender can legally start the foreclosure process.
Typically, your bank will file a lawsuit in your county and serve you a “judicial summons.”
*In some (but rare) cases, they can start before 120 days have passed.
What actions to take:
You MUST respond in writing to any judicial summons you receive.
Why: This is a legal complaint, and failing to respond can lead the court to issue a “bench warrant,” which allows law enforcement to arrest you and becomes public record (and can be both an emotionally and financially challenging experience).
You can pursue alternatives to foreclosure (e.g. short sales, or deed-in-lieu-of foreclosure).
Why: While difficult, if you’re at this point, these options can at least help you leave your home with less financial impact than a foreclosure sale.
Who can help & how:
HHR can help you understand, evaluate, and navigate your options, including trying to find possible alternatives to foreclosure.
LCLT can serve as the last resort option, preventing foreclosure by offering to purchase your land. You can work with LCLT to return to your ‘āina and newly built home via the Right of First Opportunity (ROFO) process. If you decide not to purchase, the home we rebuild on your ‘āina will only ever be sold to other Lāhainā ʻohana.
Additional resources:
HI State Judiciary | Mortgage Foreclosures
During foreclosure proceedings
What’s happening:
You’re part of an active foreclosure lawsuit.
What actions to take:
You MUST retain an attorney who specializes in foreclosure lawsuits.
Why: Navigating the legal system, especially in foreclosure lawsuits, is extremely difficult, and retaining an attorney who knows the relevant laws, procedures, deadlines, and the specifics of your case, is essential at this stage.
Who can help & how:
Pono Legal provides free legal services to members of the Maui community impacted by the Maui wildfires.
Under a new law that took effect this year, Community Land Trusts and other nonprofit housing providers such as LCLT can buy back foreclosed homes that go to auction. LCLT can then work with you to find a pathway for you to return to your ‘āina.
Additional resources:
Pono Legal | Contact Pono Legal
DCCA | Mortgage Foreclosure Dispute Resolution FAQ
Glossary of mortgage jargon
120-day rule
Simple explanation: Federal law requires mortgage servicers to wait (in most cases) until you’re at least 120 days behind on payments before starting foreclosure.
Why this matters: This gives you time to apply for loss mitigation options. Use this time wisely to explore alternatives and gather your financial documents.
Acceleration clause
Simple explanation: A part of your mortgage contract that allows the lender to demand you pay back the entire loan balance — not just the missed payments — immediately after you default.
Why this matters: Once the loan is “accelerated,” you can’t just catch up on missed payments — you need to pay off the entire mortgage to stop foreclosure.
Default/breach
Simple explanation: You’ve broken the terms of your mortgage agreement, usually by missing payments or not paying property taxes/insurance.
Why this matters: Default triggers the foreclosure process. In Hawaiʻi, you’ll get a “breach letter” explaining what you need to do to fix the default and by when.
Deed-in-lieu of foreclosure
Simple explanation: Voluntarily signing your house over to the lender instead of going through the foreclosure process.
Why this matters: Like a short sale, this can be less harmful to your credit than foreclosure, and you avoid the stress and uncertainty of the foreclosure process.
Deficiency judgment
Simple explanation: If your home sells for less than you owe, this is a court order making you pay the difference.
Why this matters: In Hawaiʻi, lenders can get deficiency judgments in judicial foreclosures, but not in “nonjudicial” foreclosures of owner-occupied homes, unless there’s other collateral (assets you own) securing the debt.
Forbearance
Simple explanation: Your lender agrees to pause or reduce your mortgage payments for a specific time period, usually due to temporary hardship like job loss, medical issues, or natural disasters.
Why this matters: This gives you breathing room, but you’ll still owe the missed payments later. The lender will work with you on how to catch up when the forbearance ends.
Foreclosure
Simple explanation: The legal process where your lender forces the sale of your home to recover money you owe on your mortgage loan. In Hawaiʻi, this can happen through the courts (judicial) or in rare cases, outside of court (nonjudicial).
Why this matters: Understanding which type you’re facing affects your rights and timeline. More foreclosures in Hawaiʻi used to be nonjudicial, but many lenders now use judicial foreclosure to avoid Hawaiʻi’s special dispute resolution program.
Judicial vs. nonjudicial foreclosure
Simple explanation:
Judicial: Goes through the court system with a lawsuit
Nonjudicial: Follows steps outlined in state law without court involvement, but triggers Mortgage Foreclosure Dispute Resolution (MFDR) program rights
Why this matters: Your rights and timeline differ between the two. Nonjudicial gives you access to the MFDR program, while judicial may move faster but offers different protections.
Loan modification
Simple explanation: Permanently changing the terms of your mortgage to make payments more affordable — this might mean lowering your interest rate, extending the loan term, or adding missed payments to your loan balance.
Why this matters: Unlike forbearance, this is a permanent solution that can help you keep your home long-term with payments you can actually afford.
Loss mitigation
Simple explanation: Working together with your loan company to find alternatives to foreclosure — like changing your loan terms, pausing payments temporarily, or creating a payment plan to catch up.
Why this matters: Federal law requires your mortgage servicer to offer you these options before starting foreclosure. This is your chance to keep your home or at least control how you leave it.
Mortgage Foreclosure Dispute Resolution Program (MFDR)
Simple explanation: A special Hawaiʻi program that gives owner-occupants the right to meet face-to-face with their lender to negotiate alternatives to foreclosure. It’s free and includes a neutral mediator.
Why this matters: This is unique to Hawaiʻi and can delay or stop foreclosure. You have 30 days to sign up, and many lenders now choose judicial foreclosure specifically to avoid this program. If you live in your home, this could potentially provide more protection than judicial foreclosure.
REO (Real Estate Owned)
Simple explanation: A property the bank now owns after foreclosure because no one else bought it at the foreclosure sale.
Why this matters: If you’re facing foreclosure, this is what happens to your home if no one bids higher than the bank at the foreclosure auction.
Right to cure/reinstatement
Simple explanation: Your ability to stop foreclosure by catching up on all missed payments plus fees by a specific deadline.
Why this matters: In nonjudicial foreclosure, you can cure the default up to 3 business days before the sale. In judicial foreclosure, Hawaiʻi law doesn’t guarantee this right, but your mortgage contract might allow it.
Right of First Opportunity/Offer (ROFO)
Simple explanation: A right of first opportunity (or offer) is a contractual agreement that gives someone the first chance to buy a property, such as a house, when an owner decides to sell it, without anyone else being able to bid for a certain amount of time.
Why this matters: If LCLT ends up purchasing your home, we offer a ROFO clause that ensures your ʻohana has the first opportunity to buy back the house after it’s rebuilt.
Mortgage lender vs. mortgage servicer
Simple explanation: The mortgage lender originally gave you the mortgage loan. The mortgage servicer is the company you send your monthly payments to and who handles your account day-to-day. They’re often different companies.
Why this matters: You’ll be dealing mostly with the mortgage servicer for loss mitigation, payment arrangements, and foreclosure questions. The mortgage servicer represents the mortgage lender’s interests.
Short sale
Simple explanation: Selling your home for less than what you owe on the mortgage, with the lender’s permission to accept less than the full amount.
Why this matters: This can be an alternative to foreclosure that does less damage to your credit, but you might still owe the difference depending on your situation and state law.
Summary judgment
Simple explanation: In a judicial foreclosure, this is when the lender asks the judge to rule in their favor without a full trial because the key facts aren’t in dispute.
Why this matters: If you don’t respond to the foreclosure lawsuit or can’t show a valid defense, the court will likely grant summary judgment, allowing the lender to sell your home.
Do you believe your mortgage lender or servicer has engaged in unfair, discriminatory, or illegal practices? Report it to:
Take action!
Download the full guide:
Get help from HHR:
Support our work:
HHR (mail checks to):
Hawaiʻi Housing Resilience
1063 Lower Main St. Suite 209
Wailuku, HI 96793
