HOUSE OF REPRESENTATIVES

H.B. NO.

2132

TWENTY-FIFTH LEGISLATURE, 2010

 

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 a new section to part III to be appropriately designated and to read as follows:

"667- Foreclosure counseling. (a) No less than forty-five days prior to initiating any foreclosure under this chapter, the mortgagee shall provide to an individual consumer mortgagor written notice of default and the mortgagee's right to foreclose by first class mail at the address of the mortgaged property and, if different, at the address designated by the mortgagor by written notice to the mortgagee as the mortgagor's address for receipt of notice.

(b) Written notice required under this section shall advise the mortgagor of the availability of counseling through mortgage counseling agencies approved by the United States Department of Housing and Urban Development, or its successor, and the toll-free telephone number and website address maintained to provide information regarding no-cost mortgage counseling services provided in the State and approved by the United States Department of Housing and Urban Development or its successor. No later than June 1, 2011, the department of commerce and consumer affairs shall adopt a form of written notice meeting the requirements of this section for use by mortgagees. Counseling shall be provided at no cost to the mortgagee.

(c) Failure of the mortgagee to provide notice to the mortgagor as provided in this section shall render the foreclosure void, without limitation of the right of the mortgagee to re-exercise its power of sale or other means of foreclosure upon compliance with this section. The mortgagee shall include in the foreclosure deed an affidavit of compliance with this section."

SECTION 2. New statutory material is underscored.

SECTION 3. This Act shall take effect on July 1, 2010.

 

INTRODUCED BY:

_____________________________

 

 


 


 

Report Title:

Mortgages; Foreclosure; Mediation

 

Description:

Requires foreclosing lenders to notify their mortgagors about mortgage counseling. Makes foreclosure void if notice not provided.

 

 

 

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