Hawaii Foreclosure Laws

The state of Hawaii allows both standard judicial and non-judicial foreclosures using both the Deed of Trust and the mortgage as a security instrument. Typically it takes sixty days for the process to complete. The borrower has not got the right of redemption here in this state but the lender has the option of filing for a deficiency judgement against the borrower to recover the money that is not covered by the foreclosure.

If they are using the judicial foreclosure method it requires the lender to sue the borrower in court to obtain an order to foreclose. This process is used when no power of sale clause is included in the loan document.

If the non-judicial foreclosure is used then a notice of default and intent to foreclose must be sent to the borrower and published weekly in a newspaper of general circulation in the county in which the property is located for three consecutive weeks with the final publication must be made at least 14 days before the scheduled sale date.

The notice must also be sent to the state director of taxation and to the director of finance of the county in which the property is located. The notice is to include the dates and times of two open houses to be held at the subject property. If none are to be held, the notice must so state.

The borrower has until three business days before the sale date to cure the default. The sale will be a public auction held at the time and place stated in the notice.

The sale may be postponed from time to time by a public announcement from the foreclosing lender or their representative.

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