ALERT – HAWAII LEGISLATURE PASSES SB 651!

Posted by VIRGINIA

Netra Halperin called and alerted us that SB 651 just PASSED!  We’re not sure of the effective date – may be as early as October 2011.  We need to lobby hard to get it in play as soon as possible.  It has some very good points and abolishes PART I (1874 version) altogether.

Please send a note to Senators Baker senbaker@Capitol.hawaii.gov and Herkes repherkes@Capitol.hawaii.gov and thank them. The more emails they receive – the stronger they will see our foreclosure family is.   Have a great weekend.  And Keep the Faith!

Please take a moment this weekend to say a prayer of thanks for those who went before us and led us to the point we have achieved today.  The hopes and dreams and fears of thousands who are struggling with the loss of their homes, marriages and family members because they had to take the lead and sometimes accept the loss when nobody would listen – so that others might be saved.

For this we say “Mahalo nui loa”.

Virginia

The 93 page bill is below.

I scanned through it and it appears to be very strong and allows to convert from non-judicial to a judicial.

From the bill…

An owner-occupant of a residential property that is being
foreclosed nonjudicially under this part may convert the action
to a judicial foreclosure under the following conditions:
A complaint conforming to section 667-S shall be filed
with the circuit court in the circuit where the
residential property is located, stating that the
owner-occupant of the property elects to convert the
nonjudicial foreclosure to a judicial foreclosure
proceeding;
(2) The complaint described in paragraph (1) shall be
filed with the circuit court no later than thirty days
after the notice of default and intention to foreclose
is served on the owner-occupant as required by section
667—22;
(3) within forty-five days of the filing of the complaint,
all owner-occupants of an interest in the residential
property whose interests are pledged or otherwise
encumbered by the mortgage that is being foreclosed
and all persons who have signed the promissory note or
other instrument evidencing the debt secured by the
mortgage that is being foreclosed, including without
limitation co-obligors and guarantors, shall file a
statement in the circuit court action that they agree
to submit themselves to the judicial process and the
jurisdiction of the circuit court. If this condition
is not satisfied, the circuit court action may be
dismissed with prejudice as to the right of any owner-
occupant to convert the action to a judicial
proceeding, and the mortgagee may proceed
nonjudicially;
(4) The filing of the complaint shall automatically stay
the nonjudicial foreclosure action unless and until
the judicial proceeding has been dismissed;
(5) The person filing the complaint shall have an
affirmative duty to promptly notify the Hawaii
attorney who is handling the nonjudicial foreclosure
. about the filing of the conversion;
(6) All parties joined in the converted judicial
proceeding may assert therein any claims and defenses
that they could have asserted had the action
originally been commenced as a judicial foreclosure
action; and
(7) Notwithstanding chapter 607, the fee for filing the
complaint shall be not more than $525; of which $250
shall be deposited into the mortgage foreclosure
dispute resolution fund.

Full text of bill below…

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4closureFraud.org

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Hawaii SB 651 – Relating to Mortgage Foreclosures