Hawaii Foreclosure Law Summary
Stop Hawaii Foreclosure
- Judicial Foreclosure Available: Yes
- Non-Judicial Foreclosure Available: Yes
- Primary Security Instruments: Deed of
- Timeline: Typically 60 days
- Right of Redemption: None
- Deficiency Judgments Allowed: Yes
In Hawaii, lenders may foreclose on deeds of trusts
or mortgages in default using either a judicial or non-judicial foreclosure process.
The judicial process of foreclosure, which involves
filing a lawsuit to obtain a court order to foreclose, is used when no power of
sale is present in the mortgage or deed of trust. Generally, after the court declares
a foreclosure, the property will be auctioned off to the highest bidder.
The non-judicial process of foreclosure is used when
a power of sale clause exists in a mortgage or deed of trust. A "power of sale"
clause is the clause in a deed of trust or mortgage, in which the borrower pre-authorizes
the sale of property to pay off the balance on a loan in the event of the their
default. In deeds of trust or mortgages where a power of sale exists, the power
given to the lender to sell the property may be executed by the lender or their
representative, typically referred to as the trustee. Regulations for this type
of foreclosure process are outlined below in the "Power of Sale Foreclosure Guidelines".
Power of Sale Foreclosure
If the deed of trust or mortgage contains a power of
sale clause and specifies the time, place and terms of sale, then the specified
procedure must be followed. Otherwise, the non-judicial power of sale foreclosure
is carried out as follows:
- The notice of intent to foreclose must be published
once a week for three (3) successive weeks, the last publication to be not
less than fourteen (14) days before the day of sale, in a newspaper having
a general circulation in the county in which the mortgaged property is located.
Copies of the notice must be mailed or delivered to the mortgagor, the borrower,
any prior or junior creditors, the state director of taxation and any other
person entitled to receive notice. Additionally, the notice must be posted
on the premises not less than twenty-one (21) days before the day of sale.
Said notice must state: 1) The date, time, and place of the public sale;
2) The dates and times of the two (2) open houses of the mortgaged property,
or if there will not to be any open houses, the public notice shall so state;
3) The unpaid balance of the moneys owed to the mortgagee under the mortgage
agreement; 4) A description of the mortgaged property, including the address
or description of the location of the mortgaged property, and the tax map
key number of the mortgaged property; 5) The name of the mortgagor and the
borrower; 6) the name of the lender; 7) The name of any prior or junior
creditors having a recorded lien on the mortgaged property before the recordation
of the notice of default; 8) The name, the address in the State, and the
telephone number in the State of the person in the State conducting the
public sale; and 9) The terms and conditions of the public sale.
Additional wording, as required by the State of Hawaii, may be found
- Up until three (3) days before the sale, the borrower
may cure the default and stop the sale by paying the lien debt, costs and
reasonable attorney's fees, unless otherwise agreed to between the lender
and the borrower.
- The sale, which may be held no earlier than fourteen
(14) days after the last ad is published, is to be made at auction to the
- Any sale, in which notice has been given,
may be postponed from time to time by public announcement made by the lender
or their representative.
There are no rights of redemption in Hawaii.
information on Hawaii foreclosure laws