What are the credit implications of foreclosure and for how long?

We live in Hawaii and our mortgage has become unmanageable. We just found out our house is worth 64k less than we owe. We have good credit though are overextended because of mortgage. No defaults and one 30 day late pay. We want to sell but do not have the credit left to get a 64k loan to pay off the rest of the loan. We desperately do not want to go into foreclosure. Any options anyone is aware of?

Personal Loans of $ 65K. Credit Card Loans of $ 40K. Car Loan. Student Loan. Very little in assets left, home foreclosed last month, Sept 2008, and sold another property in Dec 2007 (to get rid of the mortgage payment that was killing me).

Needless to say that I was making great money at one time, but at the moment I’m unemployed and have been for 7 months now. When I do work, I can make a lot of money per month $ 9K/month. But for the past two years, I have been taken advantage of and I believe I now fall into a category that neither can claim Chapter 7, due to making too much money when I can find work, nor Chapter 13 due to not being employed at the moment. I literally have a couple hundred dollars left to my name, which wont even cover my car loan this month…let alone the food, auto loan, electric, etc.

Any thoughts, options? I’m in Hawaii, Hilo to be exact.

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