Foreclosure Laws in Hawaii
Buying a piece of tropical beauty in Hawaii usually involves taking out a mortgage. When the mortgage payments aren't made on time, the mortgage might default. A lender can opt to file a foreclosure on a property if the borrower doesn't remedy a defaulted mortgage in accordance with the mortgage contract.
Judicial vs Non-Judicial Foreclosures
Lenders in Hawaii can opt to use the judicial foreclosure or non-judicial foreclosure process in Hawaii. Historically, most foreclosures were non-judicial. More recently, lenders have begun shifting to judicial foreclosures as a way to bypass having to follow the terms of the state's Mortgage Foreclosure Dispute Resolution.
Judicial foreclosures in Hawaii involve the lender filing a lawsuit to initiate the foreclosure. Once served with the summons and complaint, the homeowner has 20 days to respond. The process continues to move through the court system. Most judicial foreclosures take around 60 days to complete.
Non-judicial foreclosures are only possible if there is a power of sale clause in the mortgage. The process is similar to the judicial foreclosure, but it doesn't involve the court.
Notice of Sale
A notice of sale must be placed in the newspaper for three weeks at a rate of once per week. The final notice has to be no less than 14 days prior to the sale. As an alternative method, the lender can publish a notice on a state website not less than 28 days prior to the sale. When the online method is used, at least one notice has to be placed in the newspaper at least 14 days before the sale.
In the case of a non-judicial foreclosure, a notice has to be posted at the home at least 21 days prior to the sale. This is in addition to the other notice of sale requirements.
Mortgage Foreclosure Dispute Resolution
The MFDR is a program that only applies to non-judicial foreclosures. This program allows homeowners to go through mediation to try to find an alternative to foreclosure. In order for a homeowner to participate in the program, the property has to be a residential, owner-occupied property. When the non-judicial foreclosure process is started, the Department of Commerce and Consumer Affairs - Office of Administrative Hearings will send the homeowner the notice regarding dispute resolution. The homeowner has 30 days to respond by submitting the participation form with a nonrefundable fee. If no action is taken within 30 days, the homeowner loses the right to go through mediation.
Remedy, Redemption, Deficiency
Borrowers have until three days prior to a sale to remedy the default. They must pay the lien debt, reasonable attorney fees, and costs unless they come to another agreement with the lender. There are no rights for redemption in Hawaii once the foreclosure is completed. In the case of a judicial foreclosure, the lender can file a lawsuit against the borrower for a deficiency unless a ruling was made by the court regarding deficiency when the foreclosure was finalized.
The rights of homeowners to fight foreclosure in Hawaii depends on the type of foreclosure process being used. Anyone who gets a foreclosure notice should work quickly to understand their options. Seeking help from foreclosure lawyers might help borrowers to learn about all options so they can make informed choices.
The information on this page is meant to provide a general overview of the law. The laws in your state and/or city may deviate significantly from those described here. If you have specific questions related to your situation you should speak with a local attorney.
Additional Foreclosure and Alternatives Articles
- A Homeowner's Rights During Foreclosure
- How To Avoid Foreclosure
- The Mortgage Forgiveness Debt Relief Act of 2007
- Can I Use a Loan Modification Program in Order to Save my Home from Foreclosure?
- Renters Now Protected in Foreclosures
- Foreclosure & Strategic Default (Walking Away)
- What are Credit Counseling Agencies?
- Foreclosure Protection for Victims of Hurricane Sandy
- Different Types of Foreclosure
- How Can a Creditor Repossess Property?
- The Foreclosure Timeline
- Defenses to Repossession
- Understanding the Foreclosure Process
- A Plain Language Explanation of Your Options for Avoiding Foreclosure
- Alternatives to Foreclosure
- What to do About Your Mortgage When You're Facing Money Problems
- Bankruptcy or Foreclosure?
- Ten Tips for Avoiding Foreclosure
- Foreclosure: An Overview
- How do creditors get paid when foreclosing on a house to satisfy unpaid debts?
- What is acceleration?
- I've fallen on bad times and am having trouble paying my mortgage. What should I do?
- Who is eligible for a short sale under the Making Home Affordable Foreclosure Alternatives Program?
- What can a creditor do if a debtor won't pay?
- What is the Hope for Homeowner's Act?
- What is the Truth In Lending Act?
- What Is a money judgment?
- I'm in foreclosure... can refinancing under FHASecure still help me?
- What is the FHASecure refinancing program?
- Are homeowners with interest only mortgages eligible for an FHASecure refinance?
- What are the requirements for an FHA Streamlined Mortgage Refinance?
- What kinds of streamline refinances do lenders offer?
- What is Judicial Foreclosure?
- What is a Power of Sale Foreclosure?
- What is Strict Foreclosure?
State Foreclosure and Alternatives Articles
- District of Columbia
- New Hampshire
- New Jersey
- New Mexico
- New York
- North Carolina