(Source: mauinow By Lisa Teichner) – Governor Neil Abercrombie signed Senate Bill 651 last week, which amends the Hawaii Revised Statutes Chapter 487, Section 667 as of Thursday, May 5, 2011. The bill/new law is lengthy (we’re told approximately 700 pages in total) and ambiguous, however there are some bullet points which Hawaii homeowners should be aware of.The primary or general purpose of this bill was to create guidelines for foreclosing mortgagees, to establish a mediation special fund and require mortgagees (often referred to as lenders or banks) to engage in mediation with mortgagors (often referred to as borrowers) for sixty days, in order to attempt a voluntary resolution of the breach of the mortgage agreement. We have heard that mediations between mortgagees and mortgagors have already begun and that Bank of America among other lenders has scheduled “in person” meetings with borrowers this week in Hawaii.

Source: mauinow By Lisa Teichner

May 12th, 2011

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