HB3100 HD1

Report Title:

Mortgage Foreclosures

Description:

Limits downpayment in event of power of sale foreclosure auction to not more than 10 percent of successful bid, with the downpayment to be used, if the sale does not close, for the mortgagee's auction and escrow expenses, with the balance returned to the successful bidder (HB3100 HD1).

HOUSE OF REPRESENTATIVES	H.B. NO.	3100
TWENTY-THIRD LEGISLATURE, 2006		H.D. 1
STATE OF HAWAII

A BILL FOR AN ACT

 

relating to mortgage foreclosures.

 

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

SECTION 1. Chapter 667, Hawaii Revised Statutes, is amended by adding a new section to part I to be appropriately designated and to read as follows:

"§667- Public sale. At any public sale pursuant to section 667-5, the successful bidder at the public sale, as the purchaser, shall not be required to make a downpayment to the foreclosing mortgagee of more than ten per cent of the highest successful bid price. The balance shall be due within ninety days following the sale. Should the sale not close, the ten per cent downpayment shall cover the foreclosing mortgagee's expenses incurred in conducting the auction and any escrow fees and costs incurred, with the balance to be returned to the successful bidder."

SECTION 2. This Act does not affect rights and duties that matured, penalties that were incurred, and proceedings that were begun, before its effective date.

SECTION 3. New statutory material is underscored.

SECTION 4. This Act shall take effect upon its approval.