Bill > SB1576

This bill amends Hawaii state law to clarify and strengthen protections for residential property owners in foreclosure situations. The first section modifies the statute of limitations for debt recovery, specifically extending the six-year limitation period to explicitly include actions involving notes and mortgage notes. The second section prohibits creditors from pursuing deficiency judgments against residential property owners after a judicial or nonjudicial foreclosure is completed, with an exception only if the debt is secured by additional collateral. A deficiency judgment is a legal claim that allows a lender to pursue a borrower for the remaining balance of a loan after a foreclosure sale if the sale proceeds do not fully cover the outstanding debt. By eliminating these judgments in most cases, the bill provides significant protection for homeowners who are already experiencing financial hardship, preventing them from being further burdened by additional debt after losing their property. The bill will take effect immediately upon approval by the appropriate governmental authority.

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https://www.capitol.hawaii.gov/session/measure_indiv.aspx?billtype=SB&billnumber=1576&year=2026