Judge to couple:
Pay mortgage

They've not paid because Perfect
Title says their title is illegal

By Susan Kreifels
Star-Bulletin

Mary Nanea Reeves Sai lost her case yesterday to dismiss the foreclosure on property that she says has been in her family for nine generations.

She and husband Dennis Kapua Sai haven't made the mortgage payment on their Kuliouou home because they believe the land was stolen by the U.S. government from the native Hawaiian people, and therefore the title is illegal.

But Circuit Judge Virginia Lea Crandall denied the couple's motion, saying they were obligated to pay their debt.

The Sais say they may lose their home, but it's a matter of principle to them.

"We may be houseless but we're not homeless," said Nanea Sai defiantly. "I still believe I have clear and good title to the property. It doesn't matter what they do.

"The judge didn't address the real problem, the title."

The Sais hired Perfect Title Co. to do a title search. The company bases its searches on 19th-century Hawaiian kingdom law, basically concluding that Hawaii's existing land titles are no good. The controversial searches have brought chaos to the real-estate industry.

The two co-founders of Perfect Title were arrested last week for investigation of theft, racketeering and tax evasion.

Dennis Sai said he expected his title insurance company to pay the mortgage because he believes the title is illegal based on public records.

He said he and his wife will start making payments again if anyone can refute the findings of Perfect Title's title search, or if the title is corrected.

John Jubinsky is attorney for Title Guaranty of Hawaii Inc., agent for Ticor Title Insurance Co./Chicago Title Insurance Co., which holds the title insurance on the Sais' property.

"It's very unfortunate that these people will continue to lose their properties if they don't pay their mortgages and buy into Perfect Title's theories," said Jubinsky, who was not involved in yesterday's hearing. "We're telling them we believe they own their property, and that Perfect Title opinions are frivolous. That is what every judge has said.

"Unfortunately for these folks, they are going to put themselves in such financial jeopardy."

Attorney Derek Wong represents Homeside Lending Inc., a mainland financier who holds the Sais' mortgage. Wong said Crandall found no basis to set aside the default.

"A cloud on the title is not a defense to nonpayment of the note and enforcement of the mortgage," Wong said.