Bill Text: HI HR135 | 2011 | Regular Session | Introduced

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Bill Title: Mortgage Proceeds

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced - Dead) 2011-03-17 - (H) Referred to HSG, CPC/JUD, referral sheet 40 [HR135 Detail]

Download: Hawaii-2011-HR135-Introduced.html

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HOUSE OF REPRESENTATIVES	H.R. NO.	135
TWENTY-SIXTH LEGISLATURE, 2011
STATE OF HAWAII

HOUSE RESOLUTION

 

 

urging that the remainder of proceeds following a foreclosure sale be paid to the previous mortgagor of the foreclosed property or to the unclaimed property trust fund.

 

 

 

     WHEREAS, not all mortgage foreclosure sales end up with negative equity; and

 

     WHEREAS, in situations in which foreclosure sales end up with positive equity, any surplus remaining after paying all liens, encumbrances, fees, and costs should be distributed to the mortgagor of the foreclosed property; and

 

     WHEREAS, in situations in which the mortgagor cannot be located the moneys should be transmitted to the unclaimed property trust fund in order to remove any economic incentives for foreclosing mortgagees to retain the surplus; now, therefore,

 

     BE IT RESOLVED by the House of Representatives of the Twenty-sixth Legislature of the State of Hawaii, Regular Session of 2011, that this body urges that when public sale is made of mortgaged property, the remainder of the proceeds, if any, should be paid over to the previous mortgagor of the foreclosed property, after deducting the amount of claim and all expenses attending the same, within 30 days after the completion of the sale; and

 

     BE IT FURTHER RESOLVED that if the previous mortgagor of the foreclosed property cannot be located, the remainder of the proceeds should be transmitted to the Director of Finance for deposit into the unclaimed property trust fund established under section 523A-26, Hawaii Revised Statutes; and

 

     BE IT FURTHER RESOLVED that no sale or transfer by the mortgagor should impair or annul any right or power of attorney given in the mortgage to the mortgagee to sell or transfer the mortgaged property, as attorney or agent of the mortgagor, except as otherwise provided by chapters 501 and 502, Hawaii Revised Statutes; and

 

     BE IT FURTHER RESOLVED that after paying all liens and encumbrances in the order of priority as a matter of law, the foreclosing mortgagee's attorney's fees and costs, after paying the fees and costs of the power of sale foreclosure, and after paying the moneys owed to the foreclosing mortgagee, the balance of the sale proceeds should be distributed by the foreclosing mortgagee to junior creditors having valid liens on the mortgaged property in the order of their priority and not pro rata; and

 

     BE IT FURTHER RESOLVED that any remaining surplus after payment in full of all valid lien creditors should be distributed to the previous mortgagor of the foreclosed property within thirty days after the completion of the sale; and

 

     BE IT FURTHER RESOLVED that if the previous mortgagor of the foreclosed property cannot be located, the remaining surplus should be transmitted to the director of finance for deposit into the unclaimed property trust fund established under section 523A-26, Hawaii Revised Statutes;

 

     BE IT FURTHER RESOLVED that certified copies of this Resolution be transmitted to the Governor, Director of Commerce and Consumer Affairs, and the Mayors of the City and County of Honolulu, County of Kauai, County of Maui, and County of Hawaii.

 

 

 

	OFFERED BY:	_____________________________

Report Title: 

Mortgage Proceeds