Sell Your House in Foreclosure in Hawaii — Fair Cash Offer, Close in 7-14 Days

Yes, you can sell your house in foreclosure in Hawaii — and Hawaii’s judicial foreclosure process gives you more time to do it than almost any other state. Under Hawaii Revised Statutes Chapter 667, lenders must go through the court system to foreclose, a process that typically takes 6-12 months (and often longer). Hawaii Property Buyers can close on your property in as little as 7-14 days, paying off your mortgage and stopping the foreclosure before it goes to auction.

We Understand What You’re Going Through

Facing foreclosure is one of the most stressful experiences a homeowner can endure. The legal notices, the phone calls from lenders, the uncertainty about your family’s future — it can feel overwhelming. You’re not alone: according to ATTOM Data, Hawaii sees hundreds of foreclosure filings each year, and the emotional toll on families is enormous.

At Hawaii Property Buyers, we don’t judge your situation. Financial hardship can happen to anyone — job loss, medical bills, divorce, death of a spouse, adjustable-rate mortgage resets. What matters now is that you still have options, and the sooner you explore them, the more control you retain over the outcome. We’ve helped Hawaii homeowners facing foreclosure sell quickly, pay off their mortgage, and walk away with cash in hand — preserving their credit and their dignity.

How Foreclosure Works in Hawaii: The Legal Process

Understanding the foreclosure process gives you power. Hawaii uses two types of foreclosure, and knowing which one you’re facing determines your timeline and options.

Judicial Foreclosure (HRS 667, Part I)

This is the most common type in Hawaii. Under HRS 667-1 through 667-42, the lender must file a lawsuit in circuit court, and a judge oversees the entire process. This is your advantage — it creates a long timeline with multiple opportunities to sell before auction.

Stage	What Happens	Typical Timeline	Can You Still Sell?
Missed Payments	Lender sends late notices, reports to credit bureaus after 30 days	Days 1-90	Yes — best time to act
Notice of Default / Demand Letter	Lender formally demands payment of all past-due amounts	Day 90-120	Yes
Foreclosure Lawsuit Filed	Lender files complaint in Hawaii circuit court; you are served with a summons	Month 4-6	Yes
Court Proceedings	Discovery, motions, potential mediation — the court process moves slowly in Hawaii	Month 6-18+	Yes
Summary Judgment / Decree	Court rules in lender’s favor and authorizes sale	Month 12-24+	Yes, but time is running out
Auction / Commissioner’s Sale	Property sold at public auction; you lose all control	Month 18-36+	No — too late

The key takeaway: You can sell at every stage up until the auction. The earlier you act, the more equity you preserve and the more options you have.

Non-Judicial Foreclosure (HRS 667, Part II)

Under HRS 667-21 through 667-42, some mortgages include a “power of sale” clause that allows the lender to foreclose without going through court. This process is faster:

• Lender must serve a written notice of intent to foreclose at least 60 days before the sale
• Notice must be published in a newspaper for 3 consecutive weeks
• The property is sold at public auction
• Total timeline: typically 3-6 months (much faster than judicial)

Important: Even in non-judicial foreclosure, you can sell before the auction date. But the timeline is compressed — if you’ve received a notice of intent to foreclose under the non-judicial process, call us immediately at (808) 940-3430. We can close before your auction date.

Your Options When Facing Foreclosure in Hawaii

You have more options than you may realize. Here’s every path available, with honest pros and cons for each.

Option 1: Reinstate Your Loan (Cure the Default)

Pay all past-due amounts, late fees, and legal costs to bring the mortgage current. Under Hawaii law, you have the right to reinstate up until the foreclosure sale.

Best for: Homeowners who experienced temporary hardship and can now resume payments
Challenge: The reinstatement amount grows quickly — after 6 months of missed payments plus attorney fees, it can be $20,000-$50,000+

Option 2: Loan Modification

Negotiate new mortgage terms with your lender — lower interest rate, extended term, or reduced principal. Federal programs and Hawaii-specific options may be available.

Best for: Homeowners who want to keep the house and can afford a modified payment
Challenge: Approval takes 2-6 months, is not guaranteed, and the foreclosure process may continue during review

Option 3: Forbearance Agreement

Your lender temporarily reduces or pauses payments. The unpaid amount is added to the end of the loan or spread over future payments.

Best for: Short-term hardship (job loss, medical issue) with recovery expected
Challenge: You eventually pay everything back — this delays the problem, not solves it

Option 4: Short Sale

Sell the home for less than you owe on the mortgage, with the lender’s approval. The lender agrees to accept the sale price as settlement.

Best for: Underwater mortgages where the home is worth less than the loan balance
Challenge: Requires lender approval (takes 2-4 months), still damages credit (though less than foreclosure), and the lender may pursue a deficiency judgment for the remaining balance

Option 5: Sell to a Cash Buyer (Hawaii Property Buyers)

Sell your home quickly for cash, pay off the mortgage at closing, and walk away with any remaining equity. This is the fastest way to stop foreclosure while preserving your credit and financial future.

Best for: Homeowners who want a clean break, need to sell fast, and want to avoid the credit damage of foreclosure
Why this works: We close in 7-14 days — faster than any other option. Your mortgage is paid off at closing. If there’s equity beyond the mortgage balance, you keep it.

Option 6: Deed in Lieu of Foreclosure

You voluntarily transfer the property deed to the lender in exchange for release from the mortgage. No auction, no lawsuit.

Best for: Homeowners with no equity who want to avoid the public stigma of foreclosure
Challenge: Still damages credit (though slightly less than foreclosure), and you walk away with nothing — no cash, no equity

Option 7: Bankruptcy Filing

Filing Chapter 13 bankruptcy triggers an automatic stay that immediately halts foreclosure. You then propose a repayment plan to catch up over 3-5 years.

Best for: Homeowners with income who want to keep the home and have other debts to restructure
Challenge: Bankruptcy stays on your credit for 7-10 years, is expensive (attorney fees $3,000-$5,000+), and requires strict adherence to the repayment plan

Options Comparison

Option	Timeline	Keep Home?	Credit Impact	Cash Out?
Reinstate loan	Immediate (if funds available)	Yes	Minimal (late payments recorded)	No
Loan modification	2-6 months	Yes	Moderate	No
Forbearance	3-12 months pause	Yes	Varies	No
Short sale	2-6 months	No	Significant (but less than foreclosure)	No
Sell to Hawaii Property Buyers	7-14 days	No	Minimal (sale, not foreclosure)	Yes — keep remaining equity
Deed in lieu	1-3 months	No	Significant	No
Chapter 13 bankruptcy	3-5 year repayment plan	Possibly	Severe (7-10 years on record)	No

Why Hawaii’s Foreclosure Timeline Works in Your Favor

Hawaii has one of the slowest foreclosure processes in the United States. According to ATTOM Data Solutions, the average foreclosure in Hawaii takes over 2,000 days from the first missed payment to the completed foreclosure sale — compared to a national average of approximately 850 days.

This is because:

• Judicial foreclosure requires court oversight — every step must be approved by a judge
• Hawaii courts are backlogged — scheduling hearings and processing cases takes time
• Mandatory mediation programs — some Hawaii circuits require foreclosure mediation before proceeding
• Borrower protections — Hawaii law provides multiple opportunities to contest or delay the process

What this means for you: Even if you’ve already received foreclosure papers, you likely have months — sometimes years — before the actual auction. But don’t wait. The earlier you sell, the more equity you preserve and the less damage to your credit.

Deficiency Judgments in Hawaii

A deficiency judgment occurs when a foreclosed property sells at auction for less than the mortgage balance. The lender can then sue the former homeowner for the difference.

Hawaii law allows deficiency judgments after judicial foreclosure. Under HRS 667-1.5, the lender may seek a deficiency judgment within 30 days after the foreclosure sale is confirmed by the court. This means that even after losing your home at auction, you could still owe your lender tens or hundreds of thousands of dollars.

Selling before auction eliminates deficiency risk. When you sell to Hawaii Property Buyers, the mortgage is paid off in full from the sale proceeds. There is no deficiency, no lingering debt, and no risk of a judgment against you.

How Hawaii Property Buyers Stops Your Foreclosure

Our process is designed specifically for homeowners facing time pressure. Here’s exactly how it works:

1. Call us at (808) 940-3430 — tell us about your situation. We’ll ask about your mortgage balance, any liens, and your foreclosure timeline. This call is free, confidential, and carries no obligation.
2. We assess your property — one brief visit (usually 30 minutes). No repairs, cleaning, or preparation needed.
3. Cash offer within 24 hours — we present a fair offer based on the property’s current condition. No negotiation games, no lowball tactics.
4. You review and decide — take your time (within your foreclosure timeline). We recommend having a real estate attorney review the offer.
5. We coordinate with your lender — our team handles all communication with your mortgage company to get the payoff amount and manage the closing.
6. Close in 7-14 days — at closing, your mortgage is paid off. If there’s equity remaining after the payoff, you receive the difference as cash.
7. Foreclosure stopped — with the mortgage paid in full, the foreclosure case is dismissed. It never appears as a completed foreclosure on your credit report.

What Makes Us Different

• We buy in any condition — no repairs, no cleaning, no staging needed
• No realtor commissions — you pay $0 in fees or commissions
• We pay all closing costs — title, escrow, recording fees — all covered
• Cash advance available — up to $10,000 before closing if you need immediate funds for moving, rent deposit, or living expenses
• We work on your timeline — if your auction is in 3 weeks, we can close before it
• Discreet process — no yard signs, no open houses, no neighbors knowing your situation

Traditional Sale vs. Cash Sale During Foreclosure

Factor	Traditional Realtor Listing	Hawaii Property Buyers Cash Sale
Timeline	3-6+ months (often too slow for foreclosure)	7-14 days
Repairs required	Yes — buyers expect move-in ready	None — we buy as-is
Commission	5-6% ($41,500-$49,800 on median Hawaii home)	$0
Closing costs	2-4% seller responsibility	$0 — we cover all costs
Buyer financing falls through	~20% of deals collapse — restarting the process costs weeks	Cash = guaranteed close
Showings	Multiple strangers in your home for months	One visit from our team
Privacy	MLS listing, yard sign, open houses — public knowledge	Completely private transaction
Foreclosure risk	High — sale may not close before auction date	Eliminated — we close before auction

Hawaii Foreclosure Resources

If you’re facing foreclosure, these Hawaii-specific resources can help:

• Consumer Financial Protection Bureau (CFPB) — federal mortgage assistance information and complaint filing
• Hawaii DCCA Regulated Industries — file complaints against lenders or servicers violating Hawaii law
• HUD Hawaii Office — free HUD-approved housing counseling services
• Legal Aid Society of Hawai’i — free legal assistance for qualifying homeowners facing foreclosure
• Hawaii State Judiciary — Foreclosure Information — court forms, process information, and self-help resources

Frequently Asked Questions

Can I sell my house in foreclosure in Hawaii?

Yes. You can sell your home at any point before the foreclosure auction is completed. Under HRS Chapter 667, Hawaii’s judicial foreclosure process typically takes 12-24+ months, giving you substantial time to sell. Even in non-judicial foreclosure (faster process), you can sell before the auction date. Hawaii Property Buyers can close in 7-14 days.

How long does foreclosure take in Hawaii?

Judicial foreclosure in Hawaii typically takes 12-24 months from the filing of the lawsuit to the auction, though cases lasting 3+ years are common due to court backlogs. According to ATTOM Data, the average total timeline from first missed payment to completed foreclosure exceeds 2,000 days. Non-judicial foreclosure is faster — typically 3-6 months after the notice of intent is served.

Will selling stop the foreclosure from appearing on my credit report?

If you sell before the foreclosure is completed, it will not appear as a “foreclosure” on your credit report. Late mortgage payments will still be recorded (each 30-day late lowers your score 60-100 points), but a completed foreclosure is far worse — dropping your score 150-200+ points and remaining on record for 7 years. Selling early limits the damage significantly.

What if I owe more than my house is worth?

If your mortgage balance exceeds the home’s market value (underwater mortgage), you may need your lender to approve a short sale. Hawaii Property Buyers has experience negotiating with lenders on short sales. Alternatively, if you have equity, we pay off the mortgage at closing and you keep the difference.

Can the bank still come after me after foreclosure in Hawaii?

Yes. Hawaii law allows deficiency judgments after judicial foreclosure. Under HRS 667-1.5, the lender can sue you for the difference between the auction sale price and the mortgage balance. Selling to Hawaii Property Buyers for an amount that covers the mortgage eliminates this risk entirely.

Do I need my lender’s permission to sell during foreclosure?

No. You own the property until the foreclosure sale is completed and confirmed by the court. You have every right to sell to any buyer. The mortgage is paid off from the sale proceeds at closing through the title company — the lender receives their money, and the foreclosure case is dismissed.

What happens to my equity if the house goes to auction?

At auction, properties often sell below market value. Any excess above the mortgage balance and fees technically goes to you, but auction prices are unpredictable and typically lower than what you’d receive in a private sale. Selling to Hawaii Property Buyers before auction ensures you get a fair market-based offer and keep your equity.

Can I get a cash advance if I’m in foreclosure?

Yes. Eligible sellers can receive up to $10,000 as a cash advance before closing. This can help cover immediate expenses like rent for a new place, moving costs, or utility deposits while the sale is being processed. Call (808) 940-3430 to discuss eligibility.

What if I’ve already received a foreclosure summons?

You can still sell. A foreclosure summons means the lawsuit has been filed, but the process has months (often years) to go before an auction occurs. Do not ignore the summons — respond within 20 days (or 30 days if served outside Hawaii) to preserve your legal rights. Then call us to explore a fast cash sale while you still have time.

Is Hawaii a recourse or non-recourse state for mortgages?

Hawaii is generally a recourse state, meaning lenders can pursue deficiency judgments after foreclosure for the remaining balance. This is another critical reason to sell before foreclosure — paying off the mortgage in full through a sale eliminates any deficiency risk.

How does foreclosure affect my ability to buy another home?

A completed foreclosure makes it extremely difficult to get a new mortgage. According to Fannie Mae guidelines, you must wait at least 7 years after a foreclosure to qualify for a conventional loan (3 years for FHA with extenuating circumstances). A regular home sale — even during financial hardship — has no such waiting period.

What if there are liens on my property in addition to the mortgage?

Hawaii Property Buyers can close on properties with most types of liens — tax liens, contractor liens, judgment liens. Liens are paid off from sale proceeds at closing through the title company. We handle the lien resolution process. Read more: Can You Sell a House With a Lien in Hawaii?

Written by Robert Koncal, owner of Hawaii Property Buyers LLC. Robert has been purchasing properties across all Hawaiian islands since 2021, helping homeowners in foreclosure and other difficult situations sell quickly and protect their financial future. Based in Honolulu, HI. Updated May 2026.

Related articles:

• Can’t Pay Your Mortgage in Hawaii? Here Are Your Options
• Selling a House During Divorce in Hawaii
• I Inherited a House in Hawaii — Now What?
• Can You Sell a House With a Lien in Hawaii?