Hawaii

 

Hawaii Foreclosure Laws

Judicial Foreclosure Available: Yes
Non-Judicial Foreclosure Available: Yes
Security Instruments: Mortgage, Deed of Trust
Right of Redemption Period: None
Deficiency Judgments Allowed: Yes
Time Frame: 2 Months
Public Notice: Publication

Hawaii is a title theory state, which means that a property title will remain in trust until the loan is paid in full. In Hawaii, a title can be secured by either a mortgage or a deed of trust. Both documents serve the same purpose and generally have the same terms.

Lenders may choose to foreclose on a property through either a judicial foreclosure or a non-judicial foreclosure, with the latter being the primary method used.

The state does not have a statutory right of redemption, meaning that once a borrower loses their property in foreclosure, they do not have the ability to get it back by paying off their loan and any additional costs. However, Hawaii foreclosure law does allow the borrower to cure their default up until three (3) days before the foreclosure sale by paying off their debt in full along with any fees and costs, including attorney’s fees.

Types of Foreclosures Allowed in Hawaii

Judicial Foreclosure

Hawaii statute allows for judicial foreclosures on defaulted property. This type of foreclosure, also known as foreclosure by judicial sale, involves selling the defaulted property under court supervision. In order for a judicial foreclosure to be possible, no power of sale clause may be present in the loan documents.

The process is initiated when the lender files a complaint against the borrower and takes them to court. The court will issue a final judgment of foreclosure and then the property will be sold at auction by the county sheriff.

Non-Judicial Foreclosure

The state of Hawaii also allows for a non-judicial foreclosure, which is also known as foreclosure by power of sale. In order for non-judicial foreclosures in Hawaii to be possible, the loan documents must contain a power of sale clause. This type of foreclosure allows for the property to be sold without court supervision.

There are two ways in which a non-judicial foreclosure in Hawaii can proceed. If the power of sale clause states a specific time, place, and outlines terms of sale, then the lender must follow the procedure that is stated. If there is no specification, then the sale will follow the following guidelines:

Power of Sale Guidelines:

1. The lender must publish a notice of foreclosure sale once a week for three (3) consecutive weeks in a newspaper that circulates in the county where the property is located. The last publication must be over fourteen (14) days before the sale is scheduled to occur.

2. The notice of foreclosure must be issued to the borrower and all lien holders and must also be posted at the property that is to be foreclosed no less than twenty one (21) days before the scheduled sale. In addition, a copy of the notice of the default must also be mailed to the State Director of Taxation and to the Director of Finance that has jurisdiction over the county where the property is located.

3. The notice must contain information regarding the date, time and place of the sale, a description of the property, any open houses of the property, the name of the lender and any past or junior creditors, the terms of the sale and other relevant details.

4. The borrower may cure the default up to three (3) days before the sale by paying the debt on the mortgage in full, along with any other costs.

5. The sale may postponed by public announcement made by the lender.

Working with a Foreclosure Attorney in Hawaii

Receiving a notice of foreclosure can be extremely frightening. The thought of losing your home can be absolutely devastating; however, there is help available to homeowners in Hawaii. If you have defaulted on your loan, speak to a top Hawaii foreclosure attorney right away.

Foreclosure lawyers do their best to ensure that you do not lose your home. They will work out a plan based on your financial situation to present to your lender as an alternative to foreclosure. Some ideas include mortgage modification, short sale, refinancing or even a temporary halt in payment. Whatever the plan, rest assured that your foreclosure lawyer will not rest until the best possible outcome of your case is attained.

As a homeowner in Hawaii, you have a right to fight for your home. Contact a leading team of foreclosure attorneys in Hawaii today to discuss your options and file a claim.