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Foreclosure Defense Attorney
Foreclosure in Hawaii Can be a Scary Thing.
For most of us our house is our castle. We’ve worked hard to save up the money to put down at the time of purchase and made payments for many years. We’ve raised our kids in our house, grew older there. Basically, It is more than just a roof over our heads, it is our home. If you unexpectedly have fallen a payment or two behind, it can become an anxious time. You may want to consider contacting a foreclosure attorney.
You don’t know what’s next. Is a Sheriff going to knock on the door and kick you out? Is a bright colored paper asking you to vacate going to be nailed to your front door? Adding to that embarrassment, will your neighbors see it?
The answers to those questions are NO, but kind of YES. If your mortgage company, or home association, decide to take action to collect, then they normally will send you scary letters first. These letters will tell you the debt and how if you don’t get caught up right away, then they will initiate a foreclosure proceeding.
If you don’t make immediate payments after these written demands, it’s unlikely you get a poster nailed to your door. However, they will eventually come to your door in person and serve you with foreclosure documents.
What Does Foreclosure Mean?
Foreclosure means your creditors are trying to take your house away from you and obtain the court’s permission to sell it. Usually the Mortgage Company or AOAO serves you in person with a complaint in order to start the foreclosure lawsuit. You can answer this complaint yourself, or you can hire an expensive attorney to file and answer it for you. You can fight back, you can try to buy time. However, unless you can pay the mortgage company what they want, you will lose the battle, and your house.
After you get served with the complaint, then various other hearings and orders will be entered against you. This will lead to the posting of a sale date of your house at a public auction. Yes, let me repeat that. They are trying to take your house and sell it to the highest bidder. You will no longer own it and the new buyer will pay the mortgage off.
UNDERSTAND THAT IF YOUR HOUSE IS SOLD AT A FORECLOSURE AUCTION, WHATEVER EQUITY YOU HAD IN THE HOUSE IS LOST. YOU WON’T SEE A DIME OF IT.
There is a Quick, Simple and Inexpensive Solution.
Yes, there is a solution to get caught up with your payments and not lose your house.
It’s called filing a Chapter 13 bankruptcy. This chapter of the bankruptcy code was invented specifically to help defend against foreclosure lawsuits. It allows homeowners the chance to re-organize their affairs and stay in their property. Congress, in mid-1970 responded to the growing ranks of the homeless by enacting this quick and simple bankruptcy procedure. It gave Federal bankruptcy courts the power to stop a foreclosure filed in any state court.
You are given the chance to file a plan with the bankruptcy court that will allow you to repay your mortgage company or AOAO. In fact, it can be for all of your creditors. The plan is over a maximum of 5 years, and that’s a pretty good deal.
Don’t pay expensive foreclosure defense attorneys just so you can delay the losing of your home. Our foreclosure attorney’s will help you achieve a real solution. You are curing the arrearages you owe, maintaining the current payments, and finishing your plan with the rest of your debts wiped out.
But there are certain timing issues. There is a point in time where it is too late to file a Chapter 13 bankruptcy to save your home. Your next step is to call our office and speak with an attorney about the specifics of your case. Realize that there is a strong hope that for a small affordable fee which you can pay over time. You don’t have to lose your castle. Help is just a phone call away. Call a foreclosure attorney today. You’ll be glad you did.
What about Chapter 7?
Chapter 7 is another form of bankruptcy that, while it is essentially a reset on many of your debts, is unlikely to save your home. This option is for someone that is willing to give up their home, and while it does provide a temporary delay on the eventual foreclosure of your home, once the bankruptcy case has finished the lender can choose to continue foreclosing on your home.
Chapter 7 can help avoid a situation where, even if your home is foreclosed on, the lender can choose to seek out any remaining debts from you. In Hawaii, in some cases if the foreclosure of the home does not cover debts due, the lender can choose to seek out the remaining debt from you. So simply allowing your home to be foreclosed on does not always free you of those debts. Chapter 7, on the other hand, frequently does free you of those debts, but at a heavy cost of losing possessions such as your home.
Chapter 7 is an option for when you have no other choices left. If we can find a way to help you keep your home then we may seek out that option first, but it will usually depend on your personal situation first. We will do our best to help you figure out which option is best for you.
If we do end up deciding that Chapter 7 is the only way to free you from your debts then we will do our best to represent you and also find ways to help you recover from your bankruptcy, but we would, of course, prefer that we find a way to keep your home.
Can I still take out large loans after foreclosure?
Yes, you can still take out loans, but they will sometimes be more difficult to receive and come with high interest rates. A foreclosure will stay on your credit record for at least seven years. While that is a mark that is not easy to remove, and will likely impact interest rates, you can make efforts to improve your credit score by paying off debts and making payments on time. As your score goes up that foreclosure will stop looking quite as bad.
We have programs to help our clients recover their credit score after large losses such as bankruptcy and many of our clients are able to find new homes while still being involved in bankruptcy cases. Being involved in a foreclosure case does not mean you are never going to own a home again. In fact, we are hopeful that you will not lose your home in the first place.
Let us help you
We are experienced attorneys that have overseen multiple foreclosures and bankruptcies throughout Hawaii. We understand that what you are going through is an extremely painful time and we want to help you come to a decision that is right for you. We will always do our best to help our clients. If you would like to ask us about our Hawaii foreclosure defense services then please give us a call at 808-528-4274 or use our online contact page to set up an appointment.