Update on Hawaii Foreclosure Law

[nanasohana]

There was a discussion about foreclosures and short sales so I wondered if those interested have read this. http://mauitvnews.com/blog/http:/mauitvn...eclosures/

This part answers someones question:
"Act 48 ensured that owner-occupants would not be subject to deficiency judgments in non-judicial foreclosures should the sale of their property fail to satisfy the full amount of their indebtedness on a mortgage loan. Since lenders have filed all their foreclosures in the courts since the passage of Act 48, this bill would extend these protections to owner-occupants in judicial foreclosures, short sales, and in transactions transferring deeds-in-lieu of foreclosure. Similar anti-deficiency legislation has been enacted in various other states."

[Kelena]

Important to bear in mind that a short sale is neither a judicial (trial before a judge) nor a non-judicial (sale on the court house steps) foreclosure. Thus the legislative need to extended anti-deficiency protections to short sales. In the interim, the need to include anti-deficiency language in short sale contracts.

[nanasohana]

Yes, for sure.