Now that Gov. Abercrombie has signed Act 48, here are some of the highlights. See the State of Hawaii’s DCCA’s site about Mortagage Foreclosure Dispute Resolution (MFDR) program
Firstly, mediation program doesn’t start until October 1, 2011. Until then, owners in non-judical foreclosures can convert them to judicial foreclosures.
The act applies to mortgage companies/servicers. So it doesn’t help if you are being foreclosed on by your association.
Act provisions apply only to non-judicial foreclosures, not non-judicial that owner converted to judicial. So if you are faced with a non-judicial foreclosure, you can choose to move it to circuit court OR get the mediation under Act 48.
It can only be done once. So if you tried it and failed previously, no second chances.
Only owner-occupants qualify for Act 48 mediation, a person must have lived there 200 days.
Must be elected within 30 days of the first Notice of Foreclosure. Owner must pay $300.
Foreclosure is stayed while the mediation is ongoing
Must attend credit counseling (UST approved)/housing counseling (HUD approved)
No foreclosures by non-licensed mortgage servicers.
Foreclosure auctions will not be held at any court facility. So no more foreclosure auctions at Circuit Court building. The Act does specify that First Circuit (City and County of Honolulu) foreclosure auctions are to be held at the State Capital.
Everyone who signed the mortgage or the note must agree to judicial transfer.
Non-judical foreclosures can not be completed during bona fide loan mod negotiation or Federal loan mod program (HAMP)
More to come…
