Report Title:
Mortgage Foreclosures
Description:
Provides right of redemption to mortgagor and limits downpayment in event of foreclosure sale to not more than twenty-five per cent of successful bid in a foreclosure sale under power of sale.
|
HOUSE OF REPRESENTATIVES |
H.B. NO. |
3100 |
|
TWENTY-THIRD LEGISLATURE, 2006 |
||
|
STATE OF HAWAII |
||
|
|
A BILL FOR AN ACT
relating to mortgage foreclosures.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
SECTION 1. Chapter 667, Hawaii Revised Statutes, is amended by adding two new sections to part I to be appropriately designated and to read as follows:
"§667-A Right of redemption; redemption price. (a) Within ninety days of a sale pursuant to section 667-5, the mortgagor or borrower of the foreclosed property may redeem the foreclosed property by paying the redemption price to the successful bidder.
(b) If the successful bidder is the foreclosing mortgagee, the redemption price shall be the total of the following amounts:
(1) The entire unpaid balance of the moneys owed to the mortgagee under the mortgage agreement, including all interest accrued up to the date of redemption;
(2) The foreclosing mortgagee's attorney's fees and costs;
(3) All other fees and costs incurred by the foreclosing mortgagee related to the default, public sale, redemption, and maintenance of the foreclosed property, including taxes and assessments, insurance, document preparation and recordation fees, and upkeep, up to the date of redemption; and
(4) All fees and costs, including recordation costs, incurred in the redemption;
less any rents or profits from the foreclosed property paid to the foreclosing mortgagee for the use or occupation of the mortgaged property up to the date of redemption.
(c) If the successful bidder is a person other than the foreclosing mortgagee, the redemption price shall be total of the following amounts:
(1) The total amount of the successful bid paid to the foreclosing mortgagee;
(2) All reasonable fees and costs incurred by the successful bidder in obtaining legal title from the foreclosing mortgagee and maintaining the foreclosed property, including but not limited to financing costs, including loan or mortgage application fees, loan points, and mortgage interest payments, escrow, and insurance, upkeep, taxes, and assessments, up to the date of redemption; and
(3) All reasonable fees and costs incurred by the successful bidder in the redemption, including but not limited to legal, escrow, documentation, and recordation costs,
less any rents or profits from the foreclosed property paid to the successful bidder for the use or occupation of the foreclosed property up to the date of redemption.
(d) Upon the timely payment of the redemption price, the successful bidder shall execute necessary documentation restoring the legal title to the foreclosed property to the person exercising the right of redemption who shall record the documentation within five business days of the date of redemption.
§667-B Public sale. At any public sale pursuant to section 667-5, the successful bidder at the public sale, as the purchaser, shall make a nonrefundable downpayment to the foreclosing mortgagee of not more than twenty-five per cent of the highest successful bid price, with the balance due within ninety days following the sale."
SECTION 2. Section 667-5, Hawaii Revised Statutes, is amended to read as follows:
"§667-5 Foreclosure under power of sale; notice; affidavit after sale. When a power of sale is contained in a mortgage, the mortgagee, or the mortgagee's successor in interest, or any person authorized by the power to act in the premises, [may,] upon a breach of the condition, may: give notice of the mortgagee's, successor's, or person's intention to foreclose the mortgage and of the sale of the mortgaged property, by publication of the notice once in each of three successive weeks (three publications), the last publication to be not less than fourteen days before the day of sale, in a newspaper having a general circulation in the county in which the mortgaged property lies; and also give such notices and do all such acts as are authorized or required by the power contained in the mortgage. Copies of the notice shall be filed with the state director of taxation and shall be posted on the premises not less than twenty-one days before the day of sale.
Any sale, of which notice has been given as [aforesaid,] provided in this section, may be postponed from time to time by public announcement made by the mortgagee or by some person acting on the mortgagee's behalf. The mortgagee [shall], within thirty days after selling the property in pursuance of the power, shall file a copy of the notice of sale and the mortgagee's affidavit, setting forth the mortgagee's acts in the premises fully and particularly, in the bureau of conveyances.
The affidavit and copy of the notice shall be recorded and indexed by the registrar, in the manner provided in chapter 501 or 502, as the case may be.
This section is inapplicable if the mortgagee is foreclosing as to personal property only."
SECTION 3. This Act does not affect rights and duties that matured, penalties that were incurred, and proceedings that were begun, before its effective date.
SECTION 4. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.
SECTION 5. This Act shall take effect upon its approval.
|
INTRODUCED BY: |
_____________________________ |