Bill Text: HI SCR171 | 2010 | Regular Session | Introduced

NOTE: There are more recent revisions of this legislation. Read Latest Draft

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Bill Title: LRB; Foreclosure Mitigation Counseling

Spectrum: Partisan Bill (Democrat 4-0)

Status: (Introduced - Dead) 2010-03-30 - (S) Report adopted, as amended (SD 1) and referred to WAM. [SCR171 Detail]

Download: Hawaii-2010-SCR171-Introduced.html

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THE SENATE	S.C.R. NO.	171
TWENTY-FIFTH LEGISLATURE, 2010
STATE OF HAWAII

SENATE CONCURRENT

RESOLUTION

 

 

requesting a report on the feasibility of establishing a foreclosure trust fund to assist hawaii's homeowners.

 

 

     WHEREAS, according to the national Mortgage Bankers Association, 7,535 residential property loans were in foreclosure at the end of 2009 in Hawaii and an additional 12,182 mortgages were delinquent but not yet in foreclosure, which amounts to nearly twelve per cent of Hawaii homes that were in foreclosure or threatened by foreclosure; and

 

     WHEREAS, RealtyTrac reports that Hawaii experienced a 286.4 percent increase in foreclosures from January 2009 to January 2010 and a 241 percent increase in foreclosure auction notice filings, which is an early step homeowners take to save their homes from foreclosure; and

 

     WHEREAS, in addition, Hawaii had an average mortgage debt per borrower of $137,599 in the fourth quarter of 2009, which is the third-highest average in the nation; and

 

     WHEREAS, the Legislature finds that should a similar economic and housing situation occur in the future, Hawaii's homeowners would benefit from temporary assistance and time for the repayment of mortgage debt; now, therefore,

 

     BE IT RESOLVED by the Senate of the Twenty-fifth Legislature of the State of Hawaii, Regular Session of 2010, the House of Representatives concurring, that the Hawaii Housing Finance and Development Corporate is requested to conduct a study on the feasibility of establishing a foreclosure trust fund that would provide homeowners with temporary mortgage payment assistance to hold foreclosure in abeyance and allow the homeowners time to work with their lenders on mortgage refinancing and repayment; and

 

     BE IT FURTHER RESOLVED that the feasibility study include findings and recommendations on issues including but not limited to the following:

 

     (1)  The source of funding for the foreclosure trust fund;

 

     (2)  The scale and scope of the trust fund – whether the fund would be available statewide or to particular communities;

 

     (3)  A recommended process and criteria for selecting applicants for loans from the trust fund;

 

     (4)  A recommended process for the repayment of loans; and

 

     (5)  The length of time for which foreclosure may be held in abeyance and for which a loan from the foreclosure trust fund would be provided; and

 

     BE IT FURTHER RESOLVED that the Hawaii Housing Finance and Development Corporation is requested to report its findings and recommendations, including proposed legislation, to the Legislature no later than twenty days prior to the convening of the Regular Session of 2011; and

 

     BE IT FURTHER RESOLVED that certified copies of this Concurrent Resolution be transmitted to the Executive Director of the Hawaii Housing Finance and Development Corporation.

 

 

 

	OFFERED BY:	_____________________________

Report Title: 

HHFDC; Foreclosure Trust Fund