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Hawaii Foreclosure Law Summary
Quick Facts
- Judicial Foreclosure Available: Yes
- Non-Judicial Foreclosure Available: Yes
- Primary Security Instruments: Deed
of Trust, Mortgage
- 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.
Judicial Foreclosure
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.
Non-Judicial Foreclosure
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 Guidelines
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.
- 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 highest bidder.
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.
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