Some Hawaii Real Estate Agents Steer Clear From Homeowners With Delinquent Mortgages As New State Foreclosure Rescue Law Has Long Reach

In Honolulu, Hawaii, Pacific Business News reports:

• Some [Hawaii] real estate agents are refusing to take listings from homeowners who are behind in their mortgage payments and trying to avoid foreclosure because of a state law that was intended to protect consumers from predatory mortgage lenders.

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• The law(1) was intended to protect homeowners facing foreclosure from predatory “rescuers” looking to take advantage of their situation. Some real estate agents could fall under the definition of a “distressed property consultant,” which requires them to abide by a separate set of rules outlined in the law.

For more, see Anti-mortgage fraud law jams up Realtors.

(1) The Hawaii Mortgage Rescue Fraud Prevention Act, which took effect July 1, 2008.