When availing of a Hawaii mortgage loan and presenting your home as your collateral, there’s a big possibility that your property will be foreclosed in case you fail to pay your dues.  When we say foreclosure, this is the right given to creditors to confiscate a home in lieu of the amount that the borrower has failed to settle.  However, one can still save his or her home by way of refinancing the foreclosure.      

There are a number of ways in which you could refinance your loan to avoid foreclosure.  One way is get another loan and update your outstanding loan.  Another is to request for an extension on your loan term.  However, you might find it hard to refinance foreclosure since your credit rating has already gone down low due to your delinquent account.  But don’t give up yet for there are still ways to stop your creditor from seizing your home.

Here are ways on how you can save your home from getting foreclosed:

- Get in touch with the loan company and ask whether they can extend your repayment period or lower the interest rate that was imposed on your loan.  By communicating with your creditors, you are giving them the impression that you are willing to pay and this might convince them to reduce the amount that you owe them.      

- Consider approaching a housing counselling agency that can provide you with effective solutions to your problem, just simply enrol in the programs or services that they are offering.  But remember that the agency must have the approval of the Department of Housing and Urban Development or HUD.    

- Look for loan companies, other than your existing creditor, that can grant you a loan that you will be able to use to refinance your current loan. But before doing so, you have to make sure that you credit rating has already improved.  You can improve your loan by paying off a big percentage of your debt.  But how can you pay your debt if you do not have the means to do so?  Well, there are loans being offered to people with bad credit ratings and you can find a number of them on the Internet. 

- Look for loan companies that try to be as considerate as possible.  Instead of looking at the credit score per se, they look beyond that.  They try their best to evaluate your credit record and if they see that there’s only one instance that has pulled your credit rating down, they will most likely grant you a loan with a reasonable interest.  

- Seek the help of credit counselors.  They will teach you how to deal with your credit problem and show many ways on how you can avoid foreclosure.    

- Try to look for other ways in which you could increase your monthly income.