THE SENATE

S.B. NO.

235

TWENTY-SIXTH LEGISLATURE, 2011

 

STATE OF HAWAII

 

 

 

 

 

 

A BILL FOR AN ACT

 

 

relating to deficiency judgments.

 

 

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

 


SECTION 1. Chapter 667, Hawaii Revised Statutes, is amended by adding a new section to be appropriately designated and to read as follows:

"667-   Deficiency judgment prohibited. No court shall issue a judgment against a mortgagor of residential real property for the unpaid balance of a mortgage debt after a short sale of the property pursuant to a foreclosure by action or foreclosure by power of sale under this chapter.

For purposes of this section, "short sale" means the sale of residential real property where the mortgagee or lender agrees to release the lien that is secured by the property upon receipt of a lesser amount than is owed on the mortgage."

SECTION 2. New statutory material is underscored.

SECTION 3. This Act shall take effect July 1, 2011.

 

INTRODUCED BY:

_____________________________

 

 



 

Report Title:

Mortgage Foreclosure; Deficiency Judgment Prohibited

 

Description:

Prohibits deficiency judgment against a mortgagor after a short sale of residential real property pursuant to a foreclosure by action or foreclosure by power of sale.

 

 

 

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