As the lava marches its way towards Pahoa, its effects are beginning to be felt even before it claims a single house.

The biggest immediate effects are in real estate sales. Even sales that were in escrow are falling apart as no one is willing to provide homeowners insurance. Without homeowners insurance, no one will fund any new mortgages. Without mortgages, the value of the homes in Pahoa are dropping rapidly.

Now comes the hard question for Pahoa homeowners with mortgages, do you keep paying the mortgage? Or is it a better choice to default and save the money to move? It is a tough choice, if you default and the lava stops, you’re likely to lose your house. But if you keep paying, you may end up owning a steaming pile of black lava rock.

If you decide to leave your home behind, bankruptcy can assist by letting you out of the mortgage. You’ll lose the house, but if your home is now covered by lava, it may be the best way to move forward.