What Happens When Hawaii's Foreclosure Moratorium Ends?
The state-mandated moratorium on mortgage companies’ ability to file foreclosures expires in Hawaii on 8/30/21. What this means for many homeowners who have fallen behind on mortgage payments due to the economic hardships imposed by the pandemic, is that the mortgage companies can now come knocking on the door for payment.
Actually, they can do a lot more than that: If they don’t think that you have proposed an adequate plan to get caught up on the payment delinquencies, then a foreclosure proceeding is now a viable option for them, and without restriction.
In other words, the reprieve of having to pay mortgage payments has come to an end, and many homeowners will be left wondering if they can get caught up and save their homes.
What Are My Options to Save My Home from Foreclosure?
If you have tried to negotiate with the mortgage company to formulate a work-out arrangement, and can’t seem to get a deal that is affordable, then don’t give up without getting advice from a competent attorney in Hawaii that specializes in Chapter 13 bankruptcy.
The Chapter 13 bankruptcy allows you a 5-year window to get caught up on your mortgage payments. That’s about the most generous “catch-up plan” you will likely receive.
In order to qualify to save your home under Chapter 13 in Hawaii:
- You must demonstrate that you have sufficient income to make your regular mortgage payments going forward
- You must repay the behind payments in a plan of reorganization that lasts, as mentioned, for 5 years.
If you think you can pay for both of these things, then Chapter 13 is a great option for you. And probably your only option, if a foreclosure looks imminent or has already started. Why? Because the bankruptcy stops the foreclosure cold through an automatic stay, which is ordered by the court to cease all collection activities.
Help from Hawaii's Top Attorneys
At the Law Offices of Blake Goodman, PC, we are the largest Chapter 13 filers on Oahu and Maui, and pride ourselves in our excellent chapter 13 representation. After all, we’ve been doing it for over 30 years. Give us a call today and see how we can save your home after this terrible pandemic has ravaged our physical and financial health.