Helping you call paradise your home for over 30 years!

Home Hawaii Blog Hawaii Realtors Can (Again) Help Homeowners With Short Sales
Hawaii Realtors Can (Again) Help Homeowners With Short Sales PDF Print E-mail

Hawaii homeowners can once again turn to real estate professionals to assist with short sales and foreclosure situations. Governor Lingle yesterday signed Hawaii Senate Bill SB 34 into law, which exempts licensed real estate brokers and salespersons who act within the scope of their license from the definition of "distressed property consultant" under the Mortgage Rescue Fraud Prevention Act (ACT 137).

The new law will become Act 66 of the 2009 Legislative Session and takes effect immediately.

The inclusion of real estate agents and brokers in last year's ACT 137 caused tremendous problems for homeowners facing a possible short sale, requiring them to navigate the complicated process on their own. In addition, agents and brokers faced considerable penalties if they provided assistance to an owner by communicating directly with the owner's lender. Consequently, many agents and brokers simply refused to list short sale properties due to the liabilities involved. 

In an effort to shield real estate agents from the fines and penalties contained in ACT 137, the Hawaii Association of Realtors (HAR) created special addenda for their members to use, but with the passage of SB 34 these forms are now obsolete.

SB 34 (soon to be ACT 66) modifies various sections of certain Hawaii Statutes, including Chapter 467 (Real Estate Brokers and Salespersons) and Chapter 480E (Mortgage Rescue Fraud Prevention Act).

The bill also prohibits a licensed real estate broker or salesperson from acquiring an ownership interest in a distressed property that they have listed, within 365 days after a listing agreement for the same distressed property has expired or terminated. 

Are you a seller who may be looking at a short sale for your property? Or perhaps you are a buyer who's interested in seeing what short sale and foreclosure opportunities exist on the Big Island of Hawaii? Island Trust Properties' experienced agents have been assisting both buyers and sellers with distressed properties for many years ---- contact us today to find out how we can help!




Add comment

Security code