Act 48 will change the way lenders can foreclose on properties….and help homeowners stay in their homes.
This new law came about from the struggle one Kalihi family went thru while facing foreclosure.
Something they want no Hawaii homeowner to have to struggle thru again.
Eddie Amaral, his wife Melba and their young daughter have lived in their Kalihi home for 15 years.
"Home is home and this is where we want to stay," says Eddie Amaral.
But for two years – their home has been at risk of being taken away.
"It was just the shoe finally dropped, it was overwhelming, terrifying really," says Melba Amaral.
In 2009, the Amaral’s asked their mortgage lender for a loan modification on their home.
A request the bank denied. A year later Eddie and Melba defaulted on their loan, and the family was fearful of foreclosure.
"Every day you wake up praying that 9:00am or 4:00pm they’re not outside your door. The cars, the paranoia," says Melba.
"We were just in default, we wanted to make arrangements, we qualified but they just denied us that’s when we fought back," says Eddie.
The Amaral’s joined forces with face – faith action for community equity – to push for new legislation in Hawaii to help struggling homeowners stay in their home.
"The system was broken," says Melba.
Thursday their work paid off…when Governor Neil Abercrombie signed a bill into law aimed at reforming the foreclosure process.
"This may well be landmark legislation -something that other states can emulate," says Senator Rosalyn Baker, (D) South & West Maui.
The new law will require lenders to meet face to face with homeowners before foreclosing on a property.
A meeting mediated by a neutral third party – where lenders could be asked to show proof they have the right to foreclose on the home. The goal is to help homeowners in negotiating to get a loan modification.
"It’s gonna really protect the homeowners, struggling homeowners," says Melba.
The state estimates over 2,000 homeowners will participate in this new mortgage foreclosure dispute resolution program.
See the original article at: KHON2 Local News
