HOUSE OF REPRESENTATIVES

H.B. NO.

661

TWENTY-SIXTH LEGISLATURE, 2011

 

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 three new sections to part I to be appropriately designated and to read as follows:

     "§667-     Definitions.  As used in this part, unless the context requires otherwise:

     "Active duty":

     (1)  Means full-time duty in the active military service of the United States;

     (2)  Includes full-time training duty, annual training duty, and attendance, while in the active military service, at a school designated as a service school by law;

     (3)  Does not include full-time national guard duty.

     "Military service" means any of the following:

     (1)  Active duty;

     (2)  If the service member is a member of the national guard, service under a call to active service authorized by the President or Secretary of Defense of the United States for a period of more than thirty consecutive days to respond to a national emergency declared by the President and supported by federal money;

     (3)  A period during which the service member is absent from active duty because of sickness, wounds, leave, or other lawful cause.

     "Period of military service" means the period beginning on the date on which the service member enters military service and ending on the date on which the service member is released from military service or dies while in military service.

     "Service member" means an individual who is in military service and is a member of the armed services or reserve forces of the United States or a member of the Hawaii national guard.

     §667-     Foreclosure by action; active duty service members; stay of proceedings.  If a defendant in a foreclosure by action is a service member and either the defendant entered into the mortgage before becoming a service member or the defendant is deployed in overseas service, the circuit court on its own motion may, or on motion of or on behalf of the service member shall, do either or both of the following, unless the circuit court determines that the ability of the defendant to comply with the terms of the obligation secured by the mortgage is not materially affected by the service member's military service:

     (1)  Stay proceedings in the action until six months after the end of the service member's period of military service; or

     (2)  Issue another order that is equitable to conserve the interests of the parties.

     §667-     Foreclosure by power of sale; active duty service members; invalidity.  (a)  If a mortgagor is a service member and either:

     (1)  Entered into the mortgage before becoming a service member; or

     (2)  Is deployed in overseas service; and

during the service member's period of military service or within six months after the end of the period of military service, the mortgage given by the service member is foreclosed under power of sale, the foreclosure and sale shall be invalid; provided that the foreclosure or sale was not ordered by the circuit court.

     (b)  A person shall not, individually or acting through another person, foreclose, sell, or attempt to foreclose or sell real property with the knowledge that the foreclosure or sale is invalid under this section.  A person who violates this section is subject to a civil fine of $2,000.

     (c)  The attorney general may file an action in the circuit court to collect a civil fine under this section."

     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.

 

INTRODUCED BY:

_____________________________

 

 


 


 

Report Title:

Mortgage Foreclosures

 

Description:

Provides mortgage foreclosure protections to active duty military service members under certain circumstances.

 

 

 

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