S.B. 652 Summary

• Requires mortgage foreclosure notices to be served at least 21 days before sale using civil complaint service methods under Hawaii rules of civil procedure, rather than previous methods.

• Prohibits mortgagees from pursuing deficiency judgments against owner-occupants of residential property who lack fee simple or leasehold interests in other real property and complete nonjudicial foreclosures.

• Allows owner-occupants of residential property to convert nonjudicial foreclosures to judicial foreclosures by filing a complaint within 20 days of notice, provided all obligors agree to submit to judicial jurisdiction within 90 days.

• Authorizes mortgagees to record notices of intent to foreclose with the land court or bureau of conveyances, giving the recorded notice the same effect as a notice of pendency of action.

• Requires public sales of foreclosed property to be held at the state building in the county seat where the property is located, with the Department of Accounting and General Services designating the specific building for Honolulu sales.

• Establishes that the mortgagor's interest is extinguished upon recordation of the foreclosure affidavit within 30 days of the public sale date.

• Effective July 1, 2030.