Foreclosure Process and Laws in Hawaii

If you default on your mortgage payments in Hawaii, the servicer (on behalf of the loan owner, called the "lender" in this article) will eventually begin a foreclosure. In the past, foreclosures in Hawaii were almost always nonjudicial. However, after Hawaii started a mortgage foreclosure dispute resolution program as part of the nonjudicial process, lenders regularly began using the courts to foreclose so they don't have to participate in that program.

With either type of foreclosure, Hawaii foreclosure laws specify how foreclosure procedures work, and both federal and local laws give you rights and protections throughout the process.

Introduction to Hawaii Foreclosure Procedures

People who take out a loan to buy residential real estate in Hawaii usually sign two documents: a promissory note and a mortgage.

• Promissory note. The promissory note is the document that contains your promise to repay the loan along with the repayment terms.
• Mortgage. The mortgage is the document that gives the lender a security interest in the property. If you fail to make the payments, the mortgage gives the lender the ability to sell the home at a foreclosure sale to recoup the money it loaned you.

The foreclosure process in Hawaii can be judicial (through court) or nonjudicial (out of court). With either a judicial or nonjudicial foreclosure in Hawaii, you have rights.

Homeowner Rights Under Federal Law

If you skip a few mortgage payments, the servicer will probably send letters and call you to try to collect the overdue amounts. Federal mortgage servicing laws require the servicer to contact you (or attempt to contact you) by phone to discuss foreclosure alternatives—called "loss mitigation" options—no later than 36 days after a missed payment and again within 36 days after each following missed payment. (12 C.F.R. § 1024.39 (2025).)

No more than 45 days after a missed payment, the servicer must let you know in writing about loss mitigation options that could be available and assign personnel to help you. There are some exceptions to a few of these requirements, like if you file for bankruptcy or tell the servicer not to contact you under the Fair Debt Collection Practices Act. (12 C.F.R. § 1024.39).

What Is a Breach Letter?

Many mortgages in Hawaii have a provision that requires the lender to send a breach letter if the borrower falls behind in payments. This notice tells you that the loan is in default. If you don't cure the default, like by getting caught up on the missed payments, the lender can accelerate the loan (call it due) and go ahead with the foreclosure.

120-Day Waiting Period (Federal Law)

Federal law generally requires the servicer to wait until the loan is over 120 days delinquent before officially starting a foreclosure. But in a few situations, like if you violate a due-on-sale clause or if the servicer is joining the foreclosure action of a superior or subordinate lienholder, the foreclosure can begin sooner. (12 C.F.R. § 1024.41 (2025).)

Judicial Foreclosure Process in Hawaii

In a judicial foreclosure, the lender files a complaint in court and gives notice of the suit by serving you with a copy, along with a summons. (Haw. Rev. Stat. § 667-1.5 (2025).) If you fail to answer the court action, the lender can get a default judgment from the court. The judgment will give the lender permission to hold a foreclosure sale.

If you respond to the lawsuit, however, the case will go through the litigation process. The lender might then request the court to grant summary judgment. A summary judgment motion asks that the court grant judgment in favor of the lender because there's no dispute about the case's critical aspects. If the court grants summary judgment for the lender—or you lose at trial—the judge will order the home sold at a foreclosure sale.

Before the sale, the lender must publish a notice of sale in a newspaper once each week for three weeks or publish it on a website and publish it at least once. (Haw. Rev. Stat. § 667-20 (2025).)

Nonjudicial Foreclosure Timeline in Hawaii

In a nonjudicial foreclosure, the lender must comply with specific procedures detailed in the Hawaii statutes, including serving you a notice of default and intention to foreclose with a deadline to cure the default that's at least 60 days after the date of the notice. The lender also has to mail or deliver a notice of sale to you. (Haw. Rev. Stat. §§ 667-22, 667-27 (2025).) The notice of sale is also published in a newspaper three times or published online and in a newspaper at least once. (Haw. Rev. Stat. § 667-27).

The sale can take place on the later of at least 60 days after notice by publication or at least 14 days after publication of the third public notice advertisement. (Haw. Rev. Stat. § 667-25 (2025).)

Foreclosure Dispute Resolution Program

As part of the nonjudicial foreclosure process, you can choose to participate in Hawaii's mortgage foreclosure dispute resolution program, a foreclosure mediation procedure. In this program, the owner-occupant meets with the lender or its representative to attempt to work out a way to prevent foreclosure. (Haw. Rev. Stat. § 667-71 and following).

Converting a Nonjudicial Foreclosure to Judicial

Homeowners of residential real estate who are facing a nonjudicial foreclosure have the option to convert the proceeding to a judicial process. But you can't convert if you elect to participate in the mortgage foreclosure dispute resolution program. (Haw. Rev. Stat. § 667-53 (2025).) To find out whether you should consider converting your foreclosure and learn about your options, consult with an attorney licensed in Hawaii.

Foreclosure Sales in Hawaii

With judicial and nonjudicial foreclosures, the process ends with a foreclosure sale, which is a public auction. The lender usually makes a bid on the property using a "credit bid" rather than bidding cash. With a credit bid, the lender gets a credit up to the amount of the borrower's debt. The highest bidder at the sale becomes the new owner of the property.

Foreclosure Alternatives in Hawaii

"Reinstating" is when you catch up on the missed payments, plus fees and costs, to stop a foreclosure. Under Hawaii law, you may reinstate your loan (and stop the foreclosure) in a nonjudicial foreclosure by paying all past-due payments plus fees and costs up to three business days before the sale. (Haw. Rev. Stat. § 667-27, § 667-28(d) (2025).)

However, Hawaii foreclosure laws don't provide the borrower with the right to reinstate before the sale in a judicial foreclosure. But the terms of the mortgage you signed might give you a reinstatement right (most do), or your lender might agree to a reinstatement.

A few additional options for preventing a foreclosure include redeeming the property before the sale, getting a loan modification, or filing for bankruptcy. Or you might be able to work out a short sale or deed in lieu of foreclosure.

Deficiency Judgments Following the Sale in Hawaii

Sometimes, when a home sells at a foreclosure sale, the sale doesn't bring in enough money to pay off the full amount owed. The difference between the sale price and the total debt is called a "deficiency balance." Many states allow the lender to get a personal judgment, a "deficiency judgment," for this amount against the borrower.

Deficiency judgments aren't allowed after nonjudicial foreclosures if the property is residential and owner-occupied unless the debt is secured by collateral other than the home. (Haw. Rev. Stat. § 667-38 (2025).) But they are allowed in judicial foreclosures.

Are There Redemption Rights After a Foreclosure Sale in Hawaii?

Some states have a law that gives a foreclosed homeowner time after the foreclosure sale to redeem the property. Hawaii law doesn't provide a right of redemption after a judicial or nonjudicial foreclosure.

Tips for Avoiding Foreclosure in Hawaii

Getting Help from a Hawaii Foreclosure Lawyer and HUD-Approved Counselor

Foreclosure laws are complicated. Servicers and lenders sometimes make errors or forget steps. If you think your servicer or lender failed to complete a required step, made a mistake, or violated state or federal foreclosure laws, you might have a defense that could force a restart to the foreclosure or you might have leverage to work out an alternative.

Consider talking to a local foreclosure attorney or legal aid office immediately to learn about your rights. A lawyer can also tell you about different ways to avoid foreclosure. Likewise, a HUD-approved housing counselor can provide helpful information (at no cost) about various alternatives to foreclosure.