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Hawaii Foreclosure Law
A foreclosure in Hawaii occurs as an in-court or an
out-of-court foreclosure sale. The typical timeline for an
out-of-court foreclosure is approximately six months. The
typical timeline for a court foreclosure is approximately 11
months.
Pre-foreclosure Period
Hawaii allows out-of-court foreclosure. It must be in
accordance with a sale clause contained the mortgage, which may
require the lender to notify the borrower of any default on the
loan before starting the foreclosure process. A court
foreclosure begins when the lender files the appropriate
documents with the court asking the court to rule that the
borrower is in default. The lender also delivers notice of the
court filing to the borrower, or publishes the notice if they
have trouble contacting the borrower. If the borrower does not
respond to the court filings within 20 days, they are found in
default and the lender can proceed with scheduling the
foreclosure sale. The borrower may file a notice of appeal
within 30 days after the court has declared them in default. Up
to three days prior to the sale, the borrower may cure the
default and halt the sale by paying the debt and associated
costs.
Notice of Sale / Auction
For out-of-court foreclosures, the notice of foreclosure sale
includes a description of the property, the terms of the sale,
names of the parties involved, and the time and location of the
sale. At least 21 days prior to the sale, the copy of the notice
is posted on the property and mailed or delivered to the
borrower. The lender publishes the notice of sale in a local
newspaper once per week for three consecutive weeks, with the
last publication at least 14 days before the day of sale. The
sale is an auction where the highest bidder buys the property.
The auction can be rescheduled, but the notices of sale must be
resent and republished. For court foreclosures, a commissioner
is appointed to sell the property at public auction. The
commissioner publishes the notice of sale in a local paper. The
notice includes the auction date and open house dates, if any.
Any party may bid at the auction and the winning bidder will be
required to pay 10 percent of the bid in the form of cash or a
cashier's check. The highest bidder does not automatically get
the property, as additional bidding may continue at a
confirmation hearing. If the court finds the price fair, the
sale is confirmed. Hawaii offers no redemption rights for the
borrower after the sale is confirmed.
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