The purpose of this chapter is to protect Hawaii consumers from persons who prey on
consumers by offering services that purport to provide relief from consumers' mortgage
loan obligations or from other filed or threatened liens or encumbrances against their
properties. Consumers who face foreclosures, liens, or encumbrances are often in desperate financial
situations that can have severe adverse consequences for individuals and families
even if the consumers have significant equity in their residential real property. The consumers' desperation makes them vulnerable to persons who claim they can stop,
prevent, or delay foreclosures, liens, or encumbrances, or claim they can reduce,
modify, or eliminate mortgage loan obligations or other filed or threatened liens
or encumbrances. Persons who make these claims often use the consumers' desperation to foster unequal
bargaining positions and withhold or misrepresent vital information and details. As a result, consumers may be convinced to give up their real property interests
and valuable equity to these persons while receiving little in return. Requiring full and complete disclosure of vital information will better enable consumers
to make informed decisions when dealing with persons claiming to be able to stop foreclosures,
liens, or encumbrances. This chapter addresses possible misrepresentations by compelling persons who offer
assistance to fully and completely describe their services in written contracts and
gives consumers the right to cancel at any time before a distressed property consultant
has performed all services called for in a contract.
FindLaw Codes may not reflect the most recent version of the law in your jurisdiction. Please verify the status of the code you are researching with the state legislature or via Westlaw before relying on it for your legal needs.
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