Foreclosure Process in Hawaii (HI)

Please review the following foreclosure procedure carefully. There are many options available to you no matter your situation. Please click here to view a list of our solutions. You may refer to the glossary of foreclosure terms at any time by clicking here.

This general information is not to be considered legal advice. We recommend consulting with a lawyer for legal advice specific to your situation.

How long does foreclosure take: Approximately 60 Days

Judicial Foreclosure Available: Yes

Non-Judicial Foreclosure Available: Yes

Foreclosure in Hawaii takes one of two forms: (1) judicial foreclosure by a lawsuit much like any other lawsuit or (2) sale under a power of sale clause in the mortgage.

Preferred Method:

Judicial foreclosure is the preferred method in Hawaii. Although trust deeds are available, they are not commonly used.

Judicial Foreclosure

In a judicial foreclosure, the Circuit Court may assess the amount due on a mortgage, without a jury, and render judgment for that amount and an order of foreclosure on the mortgage. The actual sale of the property will take place in the same way as normal execution sales.

Non-Judicial Foreclosure

Preliminary Notices

Advertising

Out-of-court foreclosures must be published, in English, once per week for 3 consecutive weeks. The last publication must be run no less than 14 days before the sale date.

Mailing

Mortgage creditors having a mortgaged lien against the property that another mortgage creditor intends to foreclose on under a power of sale clause may, if a written request is given to the foreclosing mortgage creditor, receive notice of the lender’s intent to foreclose. The foreclosing lender must mail the notice to the other mortgage creditors at least seven days prior to the date of the sale.

Sale

The highest bidder at the foreclosure sale buys the property.

Post-Sale Matters

A buyer at the foreclosure sale holds title subject to the existing liens. Any surplus from the sale shall be paid over to the owner of the mortgaged property.

Special Procedures

A notice of any foreclosure on a condominium apartment must be sent certified or registered mail to the association of the condominium. This notice must be sent at the time the lender begins foreclosure proceedings. This provision may not be waived.

Redemption

Redemption rights have been abolished in Hawaii.

Foreclosure by filing a lawsuit seeking a court order to foreclose is not common.
Methods two and three are more commonly used.

Power of Sale Foreclosure

Sale Procedures

Documents May Specify Procedures

If the mortgage or deed of trust contains a power of sale clause and specifies the time, place and manner of the foreclosure sale, then that procedure must be followed.

Statutory Procedure

However, if the mortgage or deed of trust with a power of sale clause is silent as to the place of terms of the sale, or as to the type of notice of the sale, then a foreclosure sale may be made at the courthouse door of the county where the property is located, after a breach of the conditions or requirements of the mortgage, or deed of trust, by selling for cash to the highest bidder. However, in the case of a sale under a mortgagee or deed of trust with a power of sale clause, a foreclosure deed conveys the title.

Foreclosure Without a Power of Sale Clause

If the mortgage or deed of trust lacks a power of sale clause and the lender chooses not to file a lawsuit to foreclose, then the lender may foreclose by selling the property for cash to the highest bidder at the courthouse door in the county where the property is located. Advance notice of the time, place, terms and purpose of the sale must be given by publishing an ad once a week for 4 consecutive weeks in a newspaper in the county where the property is located.

Deficiency

The lender may sue to foreclose the mortgage without filing a suit to obtain a deficiency judgment. Alternatively, the lender may sue to foreclose, and then sue for any resulting deficiency. It is the lender’s choice.

Redemption

The borrower has a right to redeem within 1 year after the foreclosure. Anyone who wants to redeem should obtain a statement of the price paid for the property at the foreclosure sale from whoever bought the property at the foreclosure sale. The borrower can then redeem the property by paying the purchase price, taxes, insurance, improvements and ten percent interests on the price and all other legitimate charges to the purchaser. If necessary, the borrower can sue in the circuit court to redeem the property.

Obtaining Legal Advice

Since foreclosure is a legal process, it would be wise to seek the advice from an attorney in your area who can answer any questions that you have, and who can inform you of your rights in the foreclosure process.