Summary of a Hawaii Foreclosure

Hawaii has three foreclosure methods: Simple Non-Judicial, Complex Non-Judicial and Judicial. From the point of view of efficiency and time elapsed, the Simple Non-Judicial is best and should be used in most foreclosures. Complex Non-Judicial or Judicial may be advisable for more expensive properties or for legal reasons (e.g. a judicial foreclosure may be advisable to extinguish prior unreleased liens).

Simple Non-Judicial
(Estimated Time: 45 days)

A sale notice is:
-served on all interested parties by mail (The HI Director of Taxation must be mailed a notice);
-posted on property at least 21 days before sale;
-published once a week for 3 weeks with last publication being more than 14 days before sale; and
-record an affidavit of compliance with the foregoing.

If any interested party requests:
-cure or reinstatement amounts, they must be provided within 5 days;
-successful bid at sale, it must be provided
-the continued sale date, it must be provided

Sale may be continued by announcement at the original sale date and time. A 10% deposit may be required of any bidder, except mortgagee. There is no redemption for any person. The foreclosure sale deed must be signed by the mortgagee.

Complex Non-Judicial
(Estimated Time: 150 days)

Requires a Default Notice which describes monetary defaults in detail and gives 60 days to cure same. It must contain notices that:
-After 60 day cure period, public sale will be held without court action which must be recorded.
-Is served on all interested parties, plus HI Director of Taxation. The notices mailed to mortgagor(s) must contain a letter agreement by the mortgagor(s) agreeing to two public showings.
-Notices served, posted and published as in Simple Non-Judicial.

Judicial Foreclosure
(Estimated Time: 200 days)

A basic judicial foreclosure process is followed, but, the Court may order a commissioner to conduct the sale and follow many of the procedures in the Complex Non-Judicial Process.