HONOLULU (AP) — Lawsuits allege hundreds of Hawaii residents should have received higher prices when selling their homes through nonjudicial foreclosure auctions.
Lawyers say the amount of losses in five lawsuits is in the millions.
The Honolulu Star-Advertiser (http://ow.ly/cNJkG ) reported Tuesday the lawsuits claim banks advertised and conducted nonjudicial foreclosure auctions for quitclaim deeds but provided winning bidders more valuable limited warranty deeds.
According to the lawsuits, advertising quitclaim auctions discouraged bidders, lowered the amount of winning bids and left borrowers with higher deficits.
Hawaii’s nonjudicial foreclosure system is aimed at providing lenders with a quicker, cheaper alternative to foreclosures handled by courts.