TOXIC TOXIC TOXIC

TITLES TITLES TITLES TITLES

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You all remember when the HAWAII LEGISLATURE PASSED SB 651 RELATING TO MORTGAGE FORECLOSURES right?

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.

Well, Fannie Mae just responded to this death blow with a servicing announcement, which is below.

From the announcement..

Effective immediately and until further notice, all new Fannie Mae foreclosures in Hawaii must be commenced as judicial foreclosures.

Effective immediately, all pending Fannie Mae non-judicial foreclosures in Hawaii that have not proceeded to sale should be dismissed and converted to judicial foreclosures.

That’s interesting. Why would they elect to do ALL foreclosures through the courts?

Due to potential title insurance issues, Fannie Mae may be required to eliminate certain recent REO acquisitions that resulted from non-judicial foreclosures. Upon being notified of any eliminations, servicers must immediately restart the matters as judicial foreclosures.

Ah, I see…

Trying to fix the toxic titles once again…

Good luck on that Fannie. You all destroyed this county’s land records to the point of no return.

There is no fixing this. The titles are toxic and can not be repaired and all of these charades will not change anything.

Full announcement below…

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4closureFraud.org

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Hawaii Legislative Changes Affecting Non-Judicial Foreclosures