Homepage > Honolulu News

New Law Could Help Resident Claiming Foreclosure Scam

Legislators Amend Law To Exempt Real Estate Brokers

POSTED: 5:07 pm HST May 8, 2009

A Kalama Valley homeowner who said he was the victim of a foreclosure rescue scam is the first to benefit from a new law protecting distressed homeowners.

Attorneys who represent homeowners complained that the Legislature is already watering down that law.

A lawsuit filed Thursday said the owner of a Kalama Valley home lost the title to a real estate representative who promised to pay his debt and save the home.

The real estate representative, identified as Renee Takahashi, sold the home to herself and then tried to evict the trusting homeowner, the lawsuit said.

Luckily for the homeowner, a new law have him a powerful defensive weapon.

"It's become an additional tool for consumers, for consumer advocates and for homeowners to protect themselves when they are in a very, very vulnerable position," Legal Aid Society attorney Ryker Wada said.

The homeowner was able to rescue his home from the foreclosure rescue scheme because his real estate broker did not provide all the required disclosures under the new law, according to the lawsuit. So, the homeowner's lawyer was able to cancel the transaction.

On Thursday, the same day the homeowner sued using the new law, lawmakers responded to complaints from real estate brokers that the new law was preventing them from helping distressed buyers. The Legislature exempted real estate brokers from the law's requirements.

"What these changes do is it makes it harder for the consumer to do that, and it gives them much fewer protections," Wada said.

Lawmakers and the state consumer protector said aggrieved homeowners have other legal recourse and licensing laws to use against real estate representatives, which they said are good enough.
KITV on Facebook
Links We Like
Find out what a sputtering economy and an increasingly difficult to crack job market means to you. More

Before you splurge on that pricey remodeling project, beware. It may not pay you back when it's time to sell. More

If you're looking to save on your next new vehicle, a low sticker price is just one aspect. Consider all the costs and make the right decision. More

Acupuncture, massage, or other complementary therapies could manage your type-2 diabetes. Find out whether they can help you. More

Shop Your Insurance

Save Up To 30% On Insurance
Paying too much for insurance? Get quotes from multiple companies and choose the best plan for you.
Start saving now!
Insurance Type:


Zip Code:


Sponsored Links