HI HR135

Urges that surplus proceeds remaining after foreclosure sales be paid to the previous mortgagor within 30 days of sale completion, after deducting all liens, encumbrances, fees, and costs.

Directs that if the previous mortgagor cannot be located, remaining surplus should be transmitted to the Director of Finance for deposit into the unclaimed property trust fund under Hawaii Revised Statutes section 523A-26.

Establishes that junior creditors with valid liens on the foreclosed property should be paid in order of priority before any remaining surplus goes to the mortgagor.

Specifies that foreclosing mortgagees must pay all liens and encumbrances in legal priority order, along with their own attorney's fees and costs, before distributing any remaining balance.

Requires certified copies be sent to the Governor, Director of Commerce and Consumer Affairs, and the Mayors of Honolulu, Kauai, Maui, and Hawaii counties.