When Hawaii passed a new law with extensive protections to prevent residents from losing their homes, it was hailed as the nation's strongest foreclosure law - maybe too strong, many warn.
In response to the law, mortgage giant Fannie Mae ( FNM - news - people ) directed its lenders three weeks ago to move all of its Hawaii foreclosures into the courts rather than use a mediation system the law created.
The courts say they'll struggle to handle the load, with foreclosure cases already taking 12 to 14 months to resolve. Lenders are warning lawmakers that they don't intend to use mediation at all.
The likely result will be further delays in getting foreclosed homes back on the market, prolonging the slow housing recovery at the root of the country's enduring economic troubles.
Read the rest of the article at Forbes
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