Foreclosure Defense

Honolulu Foreclosure Defense

Honolulu Bankruptcy Attorneys Experienced in Foreclosure Defense

Hawaii Bankruptcy Firm Defends Homeowners Against Foreclosure

Foreclosure is a legal proceeding that occurs when a bank or lender repossesses property from a homeowner who has defaulted on their mortgage by failing to make their payments. Once the property has been foreclosed, mortgage holder then sells it and applies the proceeds toward paying off the amount owed by the homeowner. Generally, foreclosure is a legal right that is an integral part of any mortgage contract.

In the U.S., foreclosures must conform to a series of rules and regulations that protect both the homeowner and the mortgage holder. Even though a bank or lender has the right to foreclose on a defaulted loan, the homeowner has the right to be treated reasonably and fairly. Homeowners' rights also allow them to defend themselves through foreclosure defense.

What is Foreclosure Defense?

Foreclosure defense is simply the use of legal strategy to avoid a foreclosure. Not all foreclosures that take place are compliant with federal and state laws, and in these instances, a foreclosure can potentially be stopped or slowed by negotiating with the lender or by challenging the validity of the foreclosure in court. Not all foreclosure cases qualify for a foreclosure defense, but many do, based upon the following legal defenses:

  • The terms of the mortgage are excessively unfair to the homeowner, it can be declared unconscionable
  • The foreclosure was the result of the mortgage holder's mistake, such as the failure to provide proper notice or failure to wait for a response from the homeowner, and the homeowner cannot be held liable
  • The lender failed to use reasonable terms in the mortgage contract as required by fair lending laws and the Truth in Lending Act

Other Alternatives

Besides foreclosure defenses, a homeowner confronting foreclosure has several other alternatives available, including short sales, bankruptcy, and loan modification. If you are facing a foreclosure action, an experienced attorney at The Law Office of Jean Christensen LLLC will present you with all your options. Contact our firm online or call 808-521-1202 to schedule your free initial consultation at our office in Honolulu today.