Foreclosure mediation in Hawaii

How foreclosure mediation works in Hawaii, step by step

1. Who qualifies

   When the foreclosure notice is served

   MFDR covers power of sale foreclosures of residential property occupied by an owner-occupant, meaning the home has been your main residence for at least 200 days in a row. It does not cover association lien foreclosures, a foreclosure converted to a court case, or a second try on the same loan if you already used the program.

   HRS §§ 667-71, 667-55

2. The state mails you an election form

   Within 10 days after the lender files its notice

   The lender must file the foreclosure notice with the department within 3 days of serving you. The department then mails you, by registered or certified mail, information about the program and a form to elect or waive it.

   HRS §§ 667-76, 667-77

3. Return the form, proof and $300 fee

   Within 30 days after the department mails it

   To join, return the election form, a statement under penalty of perjury that you are an owner-occupant with proof such as utility bills, voter or property tax records or state ID, and a $300 fee. If the department does not receive them in time, you are treated as waiving the program and the foreclosure can go on.

   HRS § 667-78

4. Your foreclosure is put on hold

   When the department opens your case

   The department mails a case opening notice within 20 days, which acts as a stay of the foreclosure. The lender also pays a $300 fee. The session is set 40 to 70 days after the notice unless everyone agrees otherwise. The stay does not extend the deadline to cure the default stated in the foreclosure notice.

   HRS §§ 667-79, 667-83

5. See a counselor and swap documents

   At least 30 and 15 days before the session

   You must meet with an approved housing counselor or budget and credit counselor at least 30 days before the session. At least 15 days before, the lender must provide the note, mortgage and default records, and you must provide income proof, any loan modification records, and proof of counseling.

   HRS § 667-80

6. The session and who attends

   Up to two 3 hour meetings

   You and the lender meet with a neutral, usually in person. The lender's representative must have authority to modify the loan or have direct access to someone who does. You may bring a lawyer and a housing counselor.

   HRS § 667-80

7. Outcome and good faith rules

   Neutral's report within 10 days

   If you reach a deal, it is written up as a contract. If not, the lender can record the neutral's report and the foreclosure resumes on its old timeline. A lender that comes without authority, withholds documents or refuses to take part can face a continued stay and a fine of up to $1,500 paid to you; a homeowner who does not take part can lose the stay and face the same fine.

   HRS §§ 667-81, 667-82

The program in Hawaii

Common questions in Hawaii