Hawaii’s Foreclosure Overhaul Calls for Mediation
May 2, 2011
Hawaii has drafted a 102-page bill calling for dispute resolution measures to help families in danger of losing their homes by facilitating loan modifications to avoid foreclosures. The bill is scheduled for a final vote in the House and Senate on Tuesday and could be up and running by October.
The measure is based on a similar mediation system used in foreclosure-plagued Nevada. By allowing lenders and families to meet face-to-face, the process resolution mechanisms will help resolve the issues in less than three months instead of a year under the state’s existing foreclosure rules. Behind the bill, “We did this bill for the borrower. We didn’t do it for the Realtor, the mortgage broker, the banks or anyone on the lending side.”