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Posted: Monday, August 6th, 2012 8:50 AM HST

Scrutiny over Hawaii foreclosure ad publishing

By Associated Press

HONOLULU (AP) — Hawaii's foreclosure overhaul law is drawing new scrutiny over publishing requirements for foreclosure notices. The law went into effect last month and allows ads to run in some weekly newspapers. The Honolulu Star-Advertiser reported Monday there is also a conflict-of-interest issue involving mainland businesses that helped change the law now standing to profit from it. Proponents of the new requirements say it will increase competition for ads. That would allow legal firm RCO Hawaii, which has ties to a mainland foreclosure mill, to direct ads to a startup publication called The Island Sun Weekly. Other newspaper publishers say it would lead to the Island Sun Weekly to get a monopoly on ads. RealtyTrac Vice-President Daren Blomquist says giving one party too much control over the foreclosure process is dangerous.