Law’s Delay Halts Foreclosures in Hawaii

LoanSafe
May 30, 2011

Although it will take several months for a key consumer-protection provision of Hawaii’s overhauled foreclosure law to take effect, for now there is an immediate freeze on many new foreclosures and auctions of homes owned by occupants.

“The new law, which took effect earlier this month, did not prescribe a foreclosure moratorium, but the law prohibits lenders from holding nonjudicial foreclosure auctions until borrowers have an opportunity to participate in a dispute resolution program.” The dispute resolution program which is said to be “a pivotal piece of the law” will begin operating October 1 so the existing foreclosure cases between owner-occupants and lenders are on hold for up to five months.

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