The short version
- Call your lender before you miss a payment. Forbearance and loan modification only work early.
- If the payment can't be fixed, sell before the bank does. In Hawaii you usually have time, and it is your leverage.
- Choose between listing (more money, slower) and a cash sale (less money, done in days). We do both, so we will show you both numbers.
If you have typed "can't afford home" into Google lately, you are far from alone. That search hit an all-time high in 2026. In Hawaii the squeeze is worse than almost anywhere: single-family prices on Oahu sit well above a million dollars, condo owners carry some of the highest association fees in the country, and insurance and property taxes keep climbing while paychecks do not.
This guide is written by a licensed Hawaii real estate broker who buys houses directly and lists them on the open market. That matters, because most "we buy houses" pages only show you one option. Below are all six, with an honest note on when each one is the right call.
1. Talk to your lender first (forbearance, repayment plan, loan modification)
Lenders lose money on foreclosures, so most servicers have programs to keep you in the home if your problem is temporary. The three common ones:
- Forbearance pauses or reduces payments for a few months. The missed amount is still owed later.
- Repayment plan spreads the missed payments across future months on top of your normal payment.
- Loan modification permanently changes the loan: a lower rate, a longer term, or moving the past-due balance to the end of the loan.
Free help exists. A HUD-approved housing counselor can review your budget and negotiate with your servicer at no cost. Call the HUD housing counseling line at 800-569-4287 or search "HUD approved housing counselor Hawaii."
2. Refinance or recast
A refinance replaces the loan with a new one, ideally with a lower payment. A recast keeps the loan but re-amortizes it after a lump-sum principal payment. Both require decent credit, equity, and enough income to qualify, which is exactly what is in short supply when you are struggling. If you are already behind, most lenders will not refinance you at all.
3. Rent it out (or rent part of it)
Hawaii rents are high enough that some owners can cover the mortgage by moving somewhere cheaper and renting the home out, or by renting a room, an ohana unit, or an ADU. Before you count on this, check three things: your HOA or CC&Rs (many condos restrict rentals), county rules on short-term rentals, and whether you can actually handle vacancies, repairs, and a tenant who stops paying.
4. List it on the open market
If you have equity and two to three months, a traditional listing will almost always net you the most money. The trade-offs are real: agent commissions, repairs and staging to get top dollar, showings while you are still living there, and the risk that the buyer's financing falls through at the last minute. If you are behind on payments, the clock is running the whole time.
Because we are a licensed brokerage, listing your home is one of the options we will actually put in front of you. A cash offer is not always your best move, and we will tell you when it is not.
5. Sell as-is for cash
A direct cash buyer purchases the home in its current condition, with no repairs, no cleaning, no showings, no commissions, and no closing costs, and can close in as little as 7 days. You pick the closing date. You take what you want from the house and leave the rest.
The honest trade-off: the price will be below what a perfect listing might bring, because the buyer is paying for the repairs, the cleanout, the speed, and the risk. What you are buying with that discount is certainty. For a homeowner who is behind on payments, dealing with an inherited or probate property, living off-island, or sitting on a house that needs more work than they can afford, that certainty is often worth more than the difference.
6. Short sale or deed in lieu (if you owe more than it's worth)
If the loan balance is higher than the home's value, a normal sale cannot pay off the lender. A short sale asks the lender to accept less than the balance and release the lien; a deed in lieu of foreclosure hands the property back to the lender voluntarily. Both hurt your credit less than a completed foreclosure, but the lender has to approve, the process often takes months, and you walk away with nothing from the sale. These are last-resort tools, and a HUD counselor or a real estate attorney should be in the conversation.
Why Hawaii gives you more time than you think
Since 2011, nearly all lender foreclosures on owner-occupied homes in Hawaii go through the courts rather than a quick trustee sale. That judicial process is slow, commonly well over a year from the first filing to an auction. It is stressful to sit through, but it is also your leverage: you can sell on your own terms, at a price you agree to, long before the bank sells it for you.
Two Hawaii-specific cautions. First, condo and community associations can foreclose on unpaid dues, and their process is often faster than the bank's, so do not let HOA fees pile up while you sort out the mortgage. Second, every month you wait adds late fees, interest, and legal costs to the payoff, which comes straight out of your equity at closing.
What not to do
- Do not ignore the letters. Every notice from the lender or the association has a response window. Missing it removes options.
- Do not stop paying the HOA to keep paying the mortgage. In Hawaii the association can move on you faster than the bank.
- Do not sign a purchase contract you have not read. Watch for assignment clauses, long inspection periods, and tiny earnest money deposits.
- Do not wait for the market to save you. Prices can move, but late fees and legal costs are guaranteed.
See all of your options in 60 seconds
Answer five quick questions about the property and your situation. Within 24 hours you get a cash offer, what it would likely net if we listed it, and what it is worth if you do nothing. Free, no obligation, no pressure.
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Frequently asked questions
What happens if I just stop paying my mortgage in Hawaii?
Most Hawaii lender foreclosures go through the courts, so the process usually takes more than a year. Your credit is damaged from the first missed payment, late fees and legal costs are added to what you owe, and if the home goes to auction you lose most or all of your equity. Selling before the bank does almost always leaves you with more money.
Can I sell my house if I am behind on payments?
Yes. As long as the sale price covers the loan payoff, taxes, and any liens, you can sell at any point before the foreclosure sale is final. If you owe more than the home is worth, you would need the lender to approve a short sale instead.
How fast can I sell my house in Hawaii?
A cash sale to a direct buyer can close in as little as 7 days. A traditional listing usually takes two to three months from the day it hits the market to the day you get paid, sometimes longer if the home needs work or financing falls through.
Will a cash offer be lower than what I would get by listing?
Usually, yes. A cash buyer is paying for speed, certainty, repairs, and cleanout, and that comes out of the price. What you get back is no commissions, no closing costs, no repairs, no showings, and a closing date you choose. We show you both numbers so you can decide.
Do I need to clean out or repair the house before selling for cash?
No. We buy Hawaii homes exactly as they are, including years of deferred maintenance and homes that are still full of belongings. Take what you want and leave the rest.
Does it cost anything to find out my options?
No. Answering the five questions is free and there is no obligation. You get a cash offer, a listing estimate, and what the home is worth if you do nothing, and you choose what to do with that information.