Hawaii Mortgage Relief Program: Help for Owners Now That HAF Has Closed

Status of the Hawaii mortgage relief program by county

Hawaii did not run HAF from one central office. HHFDC received the federal award and passed it to nonprofit service providers in each county. That is why Hawaii residents may remember different names for the same program.

The table follows HHFDC’s assistance for homeowners page, which says all HAF programs are closed and tells people with pending files to contact their provider. County announcements in 2024 said the Hawaiʻi Island and Kauaʻi portals closed that May, and Maui’s program stayed open later. We could not load a dated closing notice for every county, so we do not list one.

The bigger point is federal. The U.S. Treasury HAF page says the period of performance for all HAF awards ended on September 30, 2026. No county can pay new HAF help after that date.

Some Maui wildfire survivors have used separate recovery programs. We could not confirm which of those still take mortgage-related requests, so check directly with Maui County’s recovery office before you count on one.

First steps when a payment is missed

Mortgage trouble in Hawaii usually starts with one short month: a cut in tourism hours, a medical bill, or a big jump in insurance. What you do in the first 30 days matters most.

1. Call the servicer named on your statement. Say you have a hardship and ask for a loss mitigation application.
2. Book a counselor. A HUD-approved counselor can check the forms before you send them.
3. Write down your numbers. List take-home pay, the full mortgage payment, maintenance fees if you are in a condo, and other bills.
4. Open every letter. A notice of default has deadlines that start running when it is mailed or served.

If rising rent or utility costs for family members in the home are part of the squeeze, our Hawaii rent relief program guide lists current renter help across the islands.

Housing counselors in the islands

Hawaii has fewer counseling agencies than the mainland, and some cover several islands by phone or video. Use HUD’s counselor search or call 800-569-4287 and enter your ZIP code. Ask specifically for default or foreclosure counseling.

Counselors explain your options, review your budget, and stay in touch with the servicer. If you choose dispute resolution, DCCA keeps a list of approved Hawaii-based housing and credit counselors on its program page. Counseling from a HUD-approved agency is free.

Workout options your servicer can offer

Most home loans are covered by federal Regulation X. Under 12 CFR 1024.41, a servicer usually cannot start a foreclosure until you are more than 120 days past due. A complete application sent more than 37 days before a scheduled sale has to be decided before the sale can go ahead.

Ask to be reviewed for every option, not just one. The tools Hawaii servicers use most are:

• Short-term forbearance while income recovers.
• A repayment plan that adds a slice of the arrears to each payment.
• Payment deferral, which moves missed payments to the end of the loan.
• A loan modification with a longer term or lower rate.
• A short sale or deed in lieu, which can protect your credit more than a completed foreclosure.

Because Hawaii home values are high, many owners have real equity. A planned sale can sometimes keep that equity in your pocket. Talk it through with a counselor before the case moves too far.

VA, FHA, USDA, and Hawaiian Home Lands loans

VA loans. Hawaii has a large military and veteran community. VA borrowers can ask about special forbearance, modifications, and the VA partial claim, where VA pays the overdue amount and you repay it later. According to the VA’s page for borrowers in trouble, a 3-month trial payment plan comes first, and servicers have until November 28, 2026, to add the partial claim. VA loan technicians can be reached at 877-827-3702.

FHA loans. HUD sets the order of options an FHA servicer must consider, which can include an FHA partial claim placed as a zero-interest second lien. Some rules changed in 2025, so ask your servicer which apply now.

USDA loans. Rural parts of the neighbor islands have USDA-backed loans. Ask the servicer, or USDA Rural Development for a direct loan, about payment help.

Homestead leases. If your home sits on a Department of Hawaiian Home Lands lease, the lender and DHHL may both be involved. Tell your counselor about the lease at the first meeting.

Two foreclosure paths under HRS chapter 667

Hawaii law allows two kinds of foreclosure, and the protections differ.

Judicial foreclosure

Here the lender files a lawsuit in circuit court. You are served with the complaint and can answer and raise defenses. If the lender wins, the court orders a sale, usually run by a court-appointed commissioner, and then holds a hearing to confirm it. Many lenders use the court path for owner-occupied homes. Hawaii does not give owners a statutory right to buy the home back after a confirmed sale, so the time to act is before confirmation.

Nonjudicial foreclosure

Some mortgages include a power of sale. Under Part II of HRS chapter 667, starting at section 667-21, the lender can sell without a lawsuit after giving a notice of default and intention to foreclose. That notice must give a date to cure the default, generally at least 60 days out (section 667-22). The sale is then advertised and held publicly.

Owner-occupants get extra choices in a Part II case. They may petition to convert it into a judicial foreclosure (section 667-53), or they may elect dispute resolution, described below, but DCCA says you cannot convert once you have chosen dispute resolution. Hawaii law also generally bars a deficiency judgment against an owner-occupant after a Part II nonjudicial sale of a residential property (section 667-38).

The mortgage foreclosure dispute resolution program

Hawaii created the Mortgage Foreclosure Dispute Resolution (MFDR) program in 2011. It is run by the Office of Administrative Hearings at the Department of Commerce and Consumer Affairs (DCCA), with help from the Judiciary. It lets an owner-occupant in a nonjudicial foreclosure meet face to face with the lender and a neutral to try for a modification or payment plan.

Key rules from DCCA’s MFDR page:

• You must be an owner-occupant who has lived in the home at least 200 days.
• After DCCA mails its notice, you have 30 days to return the participation form and a $300 nonrefundable fee.
• The lender pays its own $300 fee if dispute resolution goes forward.
• Sessions are generally set 40 to 70 days after the parties are notified.

Some dates on the DCCA page come from the program’s early years. Call DCCA at (808) 586-2886 to confirm the program is accepting elections before you rely on it. The Homeowner Foreclosure Information Center at DCCA also answers general questions at (808) 586-5970.

County home exemptions and tax relief

In Hawaii, each county sets its own property tax rules. A home exemption takes a fixed amount off the assessed value of your primary residence. It does not stop a foreclosure, but it can lower the escrow part of your payment.

Honolulu. The Honolulu Real Property Assessment Division says the home exemption is $120,000, or $160,000 if the owner is 65 or older. Starting July 1, 2027, those amounts rise to $140,000 and $180,000. Claims filed and approved by September 30 apply to the next tax year, and you do not need to refile if nothing has changed. Honolulu also has separate exemptions for totally disabled veterans and other groups, and a tax credit program for some low-income owner-occupants.

Maui, Hawaiʻi, and Kauaʻi counties. Each sets its own home exemption amounts, and some give larger exemptions as owners age. Published figures we found conflicted, so we do not list them here. Call your county real property office and ask for the current amount, the filing deadline, and any age-based or income-based relief.

Legal help in Hawaii

The Legal Aid Society of Hawaiʻi is the main free civil legal aid group in the state. Its intake line is (808) 536-4302 on Oʻahu and 1-800-499-4302 from the neighbor islands. Ask about help with a notice of default, a conversion petition, or a court foreclosure case.

Help may be limited by income and case load, so call as soon as you receive a notice. If you do not qualify, ask the Hawaii State Bar Association about lawyer referral.

Our Hawaii hardship relief guide covers cash aid, food, and power bill help that can free up money for the mortgage.

Scams aimed at island homeowners

Notices of public sale are posted where anyone can read them. That gives scammers a list of names. Common pitches in Hawaii include “HAF reopening” letters, offers to buy the house fast for cash below its value, and “lease-back” deals where you sign over the deed. Be wary of anyone who:

• Asks for a fee before doing any work.
• Tells you to stop talking to your lender, a counselor, or a lawyer.
• Asks you to sign blank or incomplete papers.
• Claims they can cancel any sale, whatever the facts.

The CFPB’s scam guide has more examples. Report Hawaii scams to the DCCA Office of Consumer Protection.

Your first two weeks, step by step

Our document checklist lists common papers to gather.

Related guides

• Foreclosure assistance for veterans
• Senior property tax relief
• Hawaii utility relief programs
• Hawaii debt relief programs

Frequently asked questions

This guide is general information, not legal or financial advice. Talk to a HUD-approved counselor or a lawyer about your own loan. National Relief Program is an independent website, not a lender, HHFDC, DCCA, or any government agency.