Ka Wai Ola - Office of Hawaiian Affairs, Volume 33, Number 9, 1 September 2016 — Native Hawaiian Legal Corporation helps homesteaders facing eviction and foreclosure [ARTICLE]

Native Hawaiian Legal Corporation helps homesteaders facing eviction and foreclosure

By Native Hawaiian Legal Corporation Late on a Friday evening we received a eall from a Department of Hawaiian Home Lands lessee whose family had fallen behind in mortgage payments and was facing lease cancellation and eviction from their family homestead in Wai'anae. The Hawaiian Homes Commission had scheduled a meeting in less than three weeks away to review the hearing officer's recommendation to eaneel the family's lease for non-payment. We leamed that the family had suffered several setbacks including job losses and funeral expenses that resulted in them falling behind on their mortgage. For various personal and

poliheal reasons, the family planned to fight having to pay the mortgage at all rather than work out a plan to bring their loan current with the Department. Our office explained the likelihood that refusing to pay their loan would lead to a eaneellation of the lease and suggested the family return to us if they decided they wanted assistance to resolve the loan issues. Shortly before the scheduled hearing, the family called us back seeking assistance. Fortunately, our staff was available to attend the hearing and assist in successfully working out a plan to save the lease. In this example and in many other cases, lease cancellation and eviction is preventable so long as lessees are proactive in seeking

assistance early before it's too late to save their lease. Most often, a lessee who has fallen behind in their mortgage payments has an underlying circumstance like the family here that led to missed payments on a loan. Medical complications, loss of employment, a death in the family and related circumstances are often the factors leading a loan delinquency. Communication with your loan officer is critical during this time. The risk of falling behind on your loan payments includes late fees, legal proceedings and in the worst case cancellation of your lease and eviction from your homestead. Loans may be from DHHL itself or through a private lender. If you have a loan from the Department,

missed payments may quickly lead to a contested case hearing against you. A contested case hearing is an administrative process that generally involves a hearing officer. If you are proactive in seeking help, a certified loan counselor may be all you need to help you get back on track. Onee the Department has begun the contested case process, deadlines are triggered and timing is extremely important. If you have a private mortgage, the contested case process may be started well after you fall behind in payments and after the bank has turned the loan over to the Department. In either case, you will be notified of a hearing either before a hearing officer or with the full Commission.

After the hearing officer makes a recommended decision and order or when a matter goes directly to the Commission, the Commission eonsiders the circumstances and/or recommended decision. It is very important that you attend any meeting or hearing held by the Commission to discuss your lease. Onee the Commission makes a decision and the deadline to appeal passes, the Commission's decision becomes final. Luckily, in the Wai'anae family's situation, the family sought help before the Commission made a hnal decision. In the end and with our help, the family not only saved their lease and home but they also refinanced their loan at a better rate with lower overall monthly payments. Therefore if you find yourself in a similar situation, keep in mind that the earlier you address the issue and seek assistance if you need to, the more possibilities you will have to save your homestead for your family and future generations. ■