HI SB651

Establishes a temporary mortgage foreclosure dispute resolution program allowing owner-occupants of residential properties to negotiate with mortgagees to avoid or mitigate foreclosure before nonjudicial sales occur.

Allows owner-occupants to convert nonjudicial foreclosures to judicial proceedings within 30 days of receiving notice, with court oversight of the foreclosure process.

Implements strict requirements for nonjudicial foreclosures including mandatory notice to mortgagors, restrictions on sale locations (state facilities only), prohibition on deficiency judgments for owner-occupants, and enhanced disclosure requirements.

Creates a mortgage foreclosure dispute resolution special fund through filing fees ($250 from mortgagees, $300 from mortgagors) and requires mortgage servicers to be licensed and maintain state offices.

Includes a one-year moratorium on new nonjudicial foreclosures under Part I (effective date to July 1, 2012) and makes the dispute resolution program temporary, sunsetting September 30, 2014.