THE SENATE	S.B. NO.	2892
TWENTY-FIFTH LEGISLATURE, 2010
STATE OF HAWAII

A BILL FOR AN ACT

relating to FORECLOSURE.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

     SECTION 1.  The legislature finds that homeowners who lose their home through the non-judicial foreclosure process are disadvantaged because the sales price of the property is not supervised by the court.

     The purpose of this Act is to allow homeowners who successfully challenge a sales price through non-judicial foreclosure procedures to have a court supervised sale.

     SECTION 2.  Section 667-35, Hawaii Revised Statutes, is amended to read as follows:

     "[[]§667-35[]]  Appeal to circuit court. (a)  The borrower, the mortgagor, and any creditor having a recorded lien on the mortgaged property before the recordation of the notice of default under section 667-23, shall have the right to file an appeal in the circuit court where the mortgaged property is located to contest the presumptions set forth in section 667-34, and the statements contained in the affidavit required by section 667-32.  No appeal shall be filed later than thirty days after the recordation of the affidavit.  Failure to timely appeal shall result in the statements in the affidavit and the presumptions set forth in section 667-34 becoming conclusive in accordance with the terms of that section.

(b)  If an appeal by the borrower or mortgagor is granted by the circuit court as a result of a determination by the court that the sales price for the mortgaged property is unreasonable, the foreclosure shall be conducted pursuant to section 667-1."

     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  Statutory material to be repealed is bracketed and stricken.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:

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Report Title:

Non-Judicial Foreclosure; Appeals

Description:

Allows a homeowner to force a court supervised foreclosure if a non-judicial foreclosure is successfully appealed due to an unfair sales price.

The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.