HB 1411 Summary

• Allows owner-occupants of residential properties to convert nonjudicial power of sale foreclosures to judicial foreclosures within 20 days of notice, subject to court approval and requirements that all co-obligors agree to submit to judicial jurisdiction.

• Establishes mandatory foreclosure dispute resolution process through the center for alternative dispute resolution for residential properties occupied as primary residences, with stays on foreclosure proceedings during mediation and fees split equally between mortgagor and mortgagee (not to exceed $400).

• Prohibits deficiency judgments against owner-occupants who do not own other real property after completing nonjudicial foreclosures, though judicial foreclosures allow all remedies including deficiency judgments.

• Requires foreclosure public sales to be held only at state facilities or public lands designated by county; mandates mortgage servicers maintain physical presence in Hawaii and maintain affiliate statements; designates violations as unfair and deceptive trade practices under chapter 480.

• Imposes three-month moratorium on all foreclosure actions beginning on the effective date; appropriates funds for dispute resolution program establishment; effective July 1, 2050 (dispute resolution provisions sunset June 30, 2016).