HONOLULU — Gov. Neil Abercrombie signed Senate Bill 651 into law Thursday. The measure is a comprehensive, detailed response to the foreclosure issue facing so many Hawai‘i families, states a release from the governor’s office.
It aims at reforming the foreclosure process by implementing additional protections to individuals facing foreclosure or at risk of foreclosure. Among other things, the measure establishes a temporary mortgage foreclosure dispute resolution program and authorizes conversion from nonjudicial to judicial foreclosure.
“We’re giving a time out to our consumers so that they can wait for the provisions of this measure to kick in,” said Senate Commerce and Consumer Protection Chair Roz Baker. “When it becomes law, they will have the opportunity to convert to a judicial foreclosure or beginning Oct. 1 they can go through the dispute resolution process. In addition, no new nonjudicial foreclosures can commence once the bill is signed. This may very well be landmark legislation and something other states can emulate because it is very comprehensive, pro-consumer foreclosure reform.”