Hawaii Laws

Hawaii foreclosures can occur through both judicial and non-judicial means. If a mortgage contains a Power of Sale clause, the lender is allowed to pursue a foreclosure without having to obtain a court order to do so. In all other cases a judicial foreclosure must be used.

Judicial foreclosures begin when a lender files a suit in court against a defaulted homeowner. If the court rules in favor of the lender, they will grant the homeowner 20 days in which to pay the default amount owed. If the homeowner does not pay, then the court will schedule a foreclosure sale of their property.

In the case of non-judicial foreclosures, a homeowner may file an appeal if they feel the foreclosure is unwarranted. The court will then hold a hearing on the issue at which both sides will present arguments. The court will then decide whether to allow the foreclosure to proceed or to forbid it. In any case, the homeowner can also halt the foreclosure by paying off the default debt owed up until three days before the sale takes place.

Before a sale can occur, the lender or court clerk must arrange to have a Notice of Sale published in a local weekly newspaper for three weeks leading up to the sale. Copies must also appear on the property in question and be delivered to the homeowner at lest three weeks before the date of sale.

Either a trustee of the lender on a court clerk conducts the foreclosure auction. The winning bidder must provide a ten percent deposit on their bid immediately and arrange to pay the remaining balance within a specific amount of time. Once payment is full procured, ownership is transferred to the winning bidder.

Judicial foreclosure sales are subject to the court's confirmation. A hearing is held to determine if the property has been sold beneath its market value. If this is the case, the court may order another sale, which will be a final sale. If the court confirms, the winning bidder receives full ownership.

Hawaii foreclosures provide no rights of redemption to the original homeowner. Judicial foreclosures take up to eleven months start to finish, while non-judicial foreclosures can take up to six months.

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