Bill > SB332

This bill addresses foreclosure practices in Hawaii by introducing new protections for homeowners and potential buyers during power of sale foreclosure processes. The legislation prohibits mortgagees from bundling multiple properties together during public sales, requiring each mortgaged property to be bid on separately. The bill establishes a window of time after the initial public sale during which eligible bidders can submit subsequent bids or notices of intent to bid, with the sale not being considered final until either 15 days after the sale (if an eligible bidder submits a subsequent bid) or 45 days after the sale. Eligible bidders are specifically defined and include tenant buyers currently occupying the property, prospective owner-occupants who commit to living in the home, nonprofit housing organizations, community land trusts, and government agencies. The goal is to prevent foreclosed homes from being easily acquired by investors and instead prioritize opportunities for current residents, owner-occupants, and organizations focused on affordable housing. Additionally, the bill modifies existing foreclosure sale procedures, such as adjusting downpayment rules to allow refunds if a successful bidder loses the bid to an eligible bidder. This legislation aims to protect homeowners during economic challenges and maintain community stability by giving priority to those who will use the properties as primary residences.

Business and Industry, Housing and Urban Affairs, Justice

https://www.capitol.hawaii.gov/session/measure_indiv.aspx?billtype=SB&billnumber=332&year=2025