Best Foreclosure Lawyers in Hawaii

About Foreclosure Law in Hawaii, United States

Foreclosure is the legal process by which a lender attempts to recover the balance of a loan from a homeowner who has stopped making mortgage payments. In Hawaii, foreclosure can result in the forced sale of a property in order to pay off outstanding debt. Hawaii law provides procedures for both judicial (court-ordered) and nonjudicial (out-of-court) foreclosures, though significant reforms have modified how and when each process can be used. Understanding the different types of foreclosures and the rights of homeowners in Hawaii is crucial for anyone facing potential foreclosure or dealing with a delinquent mortgage.

Why You May Need a Lawyer

There are many situations in which hiring a lawyer can be valuable when dealing with foreclosure in Hawaii. Some common scenarios include:

• If you have received a foreclosure notice and are unsure of your legal rights or options.
• If you believe there are mistakes in the foreclosure process, such as improper notice or calculation errors.
• If you want to negotiate with your lender for a loan modification or alternative to foreclosure.
• If you are considering bankruptcy as a way to stop or delay the foreclosure.
• If you want to challenge the foreclosure based on potential violations of state or federal law.
• If you are a tenant or third party affected by someone else's foreclosure.
• If you are concerned about what happens to your property, debt, and credit after foreclosure.

A lawyer can guide you through complex procedures, help protect your rights, and represent your interests in negotiations and in court.

Local Laws Overview

Foreclosure law in Hawaii is governed by both state statutes and federal regulations. Key points include:

• Types of Foreclosure: Hawaii allows judicial foreclosures, which are processed through the courts, and nonjudicial foreclosures, which are conducted outside the court system. The nonjudicial process is only available if the mortgage or deed of trust contains a "power of sale" clause.
• Notice Requirements: Lenders must provide borrowers with proper written notice before starting the foreclosure process. For nonjudicial foreclosures, this includes a notice of default and intent to foreclose sent at least 21 days before the sale.
• The Mortgage Foreclosure Dispute Resolution (MFDR) Program: This program gives eligible owner-occupants an opportunity to meet with their lender and a neutral facilitator to explore alternatives to foreclosure.
• Right to Cure: Borrowers typically have the right to cure a default and reinstate the loan by bringing payments current prior to the foreclosure sale.
• Redemption Period: Hawaii generally does not provide a post-sale redemption period for nonjudicial foreclosures, though it can apply in certain judicial cases.
• Deficiency Judgments: Hawaii law permits deficiency judgments in some circumstances, which means a borrower may still owe money if the foreclosure sale does not cover the full mortgage balance.
• Impact on Tenants: Federal and state laws provide some protections for tenants living in foreclosed properties, such as the right to receive notice before eviction.

Frequently Asked Questions

What is the difference between judicial and nonjudicial foreclosure in Hawaii?

Judicial foreclosure involves a court process, while nonjudicial foreclosure happens outside of court, according to procedures detailed in the mortgage documents and state law. Nonjudicial foreclosure is generally faster and less expensive for lenders.

How will I know if foreclosure is starting on my property?

You will receive a formal notice from your lender. In nonjudicial foreclosures, this includes a notice of default and intentions to sell the property. In judicial foreclosures, you will be served with a lawsuit.

Can I stop foreclosure once the process has started?

In many cases, you can stop foreclosure by catching up on missed payments, negotiating a loan modification, or seeking relief through the MFDR Program. Filing for bankruptcy may also temporarily halt the process.

What happens to my credit if my home is foreclosed on?

Foreclosure will have a significant negative impact on your credit score and can remain on your credit report for up to seven years.

What alternatives to foreclosure are available in Hawaii?

Alternatives may include loan modifications, repayment plans, forbearance agreements, short sales, or a deed in lieu of foreclosure. The MFDR Program is also an option for many homeowners.

What is the Mortgage Foreclosure Dispute Resolution (MFDR) Program?

The MFDR Program is designed to give homeowners a chance to resolve mortgage disputes with their lender through facilitated meetings. Participation may help avoid foreclosure.

If I lose my home to foreclosure, will I still owe money?

You may be responsible for a deficiency if the property sells for less than you owe, depending on the type of foreclosure and the terms of your mortgage. Some foreclosures result in a deficiency judgment.

How much notice will I get before my home is sold at foreclosure?

For nonjudicial foreclosures, you must receive at least 21 days' notice before the sale. Judicial foreclosures follow court timelines, which vary by case.

Do tenants have any rights if the property they are renting is foreclosed?

Yes, tenants are generally entitled to notice before being required to leave, and some may have the right to remain for the remainder of their lease or at least 90 days under federal law.

Should I consult a lawyer if I am facing foreclosure?

It is highly recommended to consult with a foreclosure attorney for guidance on your rights, available defenses, and legal options when facing foreclosure.

Additional Resources

There are several organizations and agencies that can assist Hawaii residents facing foreclosure:

• Hawaii State Judiciary Self-Help Centers - Provide information on court-based foreclosure procedures
• Legal Aid Society of Hawaii - Offers free or low-cost legal services to eligible individuals facing foreclosure
• Hawaii Department of Commerce and Consumer Affairs (DCCA) - Oversees consumer protection and the MFDR Program
• United States Department of Housing and Urban Development (HUD) Housing Counselors - Certified housing counselors who can help homeowners explore alternatives to foreclosure
• Consumer Financial Protection Bureau (CFPB) - Provides resources and tips on foreclosure prevention

Next Steps

If you are facing foreclosure or are concerned about your mortgage, take the following steps:

1. Read all foreclosure notices and legal documents carefully.
2. Contact your lender as soon as you realize you may have trouble making your payments.
3. Gather all relevant financial and mortgage records to give to your lawyer or counselor.
4. Explore all available options, including loan modifications, repayment agreements, and state programs like MFDR.
5. Seek legal advice as soon as possible to understand your rights and responsibilities. Consult with a Hawaii-based foreclosure attorney for personalized guidance.
6. If eligible, connect with nonprofit organizations or government programs for free or low-cost assistance.

Taking immediate and informed action is often the best way to protect your home and your rights. Understanding Hawaii's foreclosure process and getting professional help can make a significant difference in the outcome of your case.