Posts Tagged ‘ act 48 ’

Hawaii Act 182 – Revamping the Foreclosure Process

Signed into law by Governor Abercrombie on June 29, Act 182 received little media coverage yet its effect on the foreclosure process in Hawaii is sure to have significant ramifications. The new Act is meant to resolve unintended consequences (‘flaws’, as scrutinized by the media and public) of Act 48. To provide a brief background, Act 48 was intended as a solution to protect owner-occupants at default from facing what was widely considered to be antiquated non-judicial foreclosure procedures. However, lienholders chose to skirt the new protections afforded by Act 48 by implementing policies whereby all new foreclosures were processed judicially. Hence, although some owner-occupants were ‘saved’ from non-judicial foreclosure, now through judicial foreclosure they can face deficiency judgments – not to mention that under-staffed, under-funded courts are now backlogged by the wave of judicial foreclosures.

With that said, the 2012 legislative session included efforts to address/remedy concerns from consumers, lenders, title companies, and HOA’s. As such, let us look at what Act 182 encompasses:

  1. Act 48 had placed a one-year moratorium on Part I of the non-judicial foreclosure law, now Act 182 has been completely eliminated Part I.
  2. Mediation, which is only available for non-judicial foreclosures of owner-occupant residential properties by lenders, has now become permanent.
  3. Borrowers can convert a non-judicial foreclosure to judicial. This protection becomes permanent under Act 182, whereas it was temporary under Act 48.
  4. Establishes a separate non-judicial foreclosure and assessment lien process for AOAO and HOAs. Very critical.
  5. Continue reading this post


Posted by: Alex Cortez on July 16th, 2012 under Guest Bloggers, Regional

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Hawaii’s Act 48 – The New Face of Foreclosure in the Aloha State

Signed into law on May 5, 2011 by Governor Neil Abercrombie, Hawaii’s Act 48 was touted as one of the strongest foreclosure laws in America. Its intent was clear and definite; provide additional protections to individuals facing foreclosure by reforming the process by which lien holders effectively foreclose on a property. Of key note:

  • Act 48 imposed a moratorium on Chapter 667, Part I Non-judicial Foreclosures effective until July 1, 2012. Known as ‘Part I’ of non-judicial foreclosures, this was the method previously used most by lien holders as it proved to be the fastest and least expensive.
  • Act 48 ‘fixed’ Chapter 667, Part II Non-Judicial Foreclosures to eliminate the requirement that the mortgagor sign the deed after foreclosure. In its original form, ‘Part II’ was inherently flawed by requiring that the mortgagor (who was being foreclosed on) to sign the deed. With lack of cooperation by the mortgagor being prevalent, Part II was not used very often in the past.
  • Act 48 created a Mortgage Foreclosure Dispute Resolution (MFDR) program. In essence, this program is offered to all owner-occupants whose property is being foreclosed on through non-judicial procedures and allows a platform to mediate with the lender. Lenders are required to participate if the owner chooses to go through this program’s mediation and will share in some of the expenses. This program will be administered by the Department of Consumer and Commerce Affairs, it is to be functional by October 1, 2011 and set to expire on September 30, 2014.
  • Owners can elect to convert a non-judicial to a judicial foreclosure, provided that they have not already participated in MFDR. Therefore, owner occupants are strongly encouraged to give proper thought to which venue is most beneficial to their particular circumstances.

Continue reading this post


Posted by: Alex Cortez on August 1st, 2011 under HomeGain, Regional, Short Sales and Foreclosures


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