Hawaii Foreclosure Law
Hawaii State Foreclosure Law dictates that lenders may avail of the Judicial and Non-Judicial processes to foreclose deeds of trust or mortgages in default. The typical time of process last about 60 days and the deeds of trust and mortgages are the security instruments used. Deficiency Judgments are allowed but the Right of Redemption is not.
In Judicial Foreclosure, petitioners must file a lawsuit for an order to foreclose. Generally, when the court declares a foreclosure, the property will be auctioned off and awarded to the highest bidder. Non-Judicial Foreclosure is used when a power of sale clause exists in the security instruments. “Power of Sale” is the process wherein the borrower agrees to sell the property to settle the remaining balance from a loan in case of default. Its difference from the judicial foreclosure is that it doesn’t need any court order to auction off the property. The lender or their representative, commonly referred to as the “trustee,” may execute the “power of sale”.
Hawaii Power of Sale Foreclosure Guideline
Should the security instruments contain a power of sale clause, the terms specified therein should be strictly followed. Otherwise, the non-judicial foreclosure should be carried out through the following process:
- The notice of intent to foreclose must be published once a week for 3 consecutive weeks in a county newspaper of the property’s locale. The last publication should not be less than 14 days before the sale.
Copies of the notice must be mailed or delivered to the mortgagor, the borrower, any prior junior creditors, the state director of taxation, and any other person entitled to receive a notice. The notice must also be posted on the foreclosed property not less than 21 days before the sale.
The notice must state:
- The date, time, and place of the foreclosure sale.
- Open houses of the property. The notice must also state if there is none.
- Outstanding balance under the mortgage agreement.
- The address and a legal description of the property and its tax map key number.
- The name of the mortgagor and the borrower.
- The name of the lender.
- The name of any prior junior creditors having a recorded lien on the property before the recording of the notice of default.
- The name, address, and telephone number in the state of the person conducting the foreclosure sale.
The terms and conditions of the foreclosure sale.
Hawaii Foreclosure Help - Honolulu HUD Field Office
500 Ala Moana
Boulevard, Suite 3A
Honolulu, HI 96813
Phone: (808) 522-8175
Fax: (808) 522-8170 and (808) 522-8194
TTY: (808) 522-8193
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