Hawaii Foreclosure Laws and Procedures

Federal and state laws regulate mortgage servicing and foreclosure procedures. These laws protect homeowners in a Hawaii foreclosure. Servicers generally have to provide borrowers with loss mitigation opportunities, account for each foreclosure step, and strictly comply with foreclosure laws.

Also, most people who take out a loan to buy a residential property in Hawaii sign a promissory note and mortgage. These documents give homeowners contractual rights in addition to federal and Hawaii foreclosure laws.

So, don't get caught off guard if you're a Hawaii homeowner behind in mortgage payments. Learn about each step in the Hawaii foreclosure process, from missing your first payment to a foreclosure sale.

Introduction to Foreclosure in Hawaii

A "foreclosure" is the legal process in which a lender forces the sale of your home to attempt to recover the loan balance after you default on the mortgage payments or violate the terms of the loan contract.

The foreclosure process in Hawaii can be judicial (through the court system) or nonjudicial (with no court involvement).

Hawaii Homeowner Rights in a Foreclosure

With either a judicial or nonjudicial foreclosure in Hawaii, you get the right to:

• receive a preforeclosure notice called a "breach letter" (most foreclosures)
• apply for loss mitigation
• get notice of the foreclosure
• receive special protections if you're in the military
• pay off the loan to prevent a foreclosure sale, and
• get any excess proceeds (surplus funds) after a foreclosure sale.

What Is Preforeclosure?

The period after you fall behind in payments, but before a foreclosure officially starts, is generally called the "preforeclosure" stage. (Sometimes, people refer to the period before a foreclosure sale actually happens as preforeclosure, too.)

During this time, the servicer can charge you various fees, like late charges and inspection fees, and, in most cases, must inform you about ways to avoid foreclosure and send you a preforeclosure notice called a "breach letter." Additional types of fees the servicer might charge include, among others, fees for broker's price opinions, which are like appraisals, and property preservation costs, such as for yard maintenance or winterizing an abandoned home.

Preforeclosure Foreclosure Protections Under Federal Law

Under federal mortgage servicing laws, if the property is your principal residence, the servicer must contact, or attempt to contact, you by phone to discuss loss mitigation options, like a loan modification, forbearance, or repayment plan, no later than 36 days after you miss a payment and again within 36 days after each following delinquency. (12 C.F.R. § 1024.39 (2025).)

No later than 45 days after missing a payment, the servicer has to inform you in writing about loss mitigation options that might be available and appoint personnel to help you try to work out a way to avoid foreclosure. A few exceptions are in place for some of these requirements, though, like if you've filed for bankruptcy or asked the servicer not to contact you under the Fair Debt Collection Practices Act. (12 C.F.R. §§ 1024.30, 1024.39, 1024.40 (2025).)

Federal mortgage servicing laws also prohibit dual tracking (pursuing a foreclosure while a complete loss mitigation application is pending). (12 C.F.R. § 1024.41 (2025).)

What Is a Breach Letter?

Many Hawaii mortgages have a provision that requires the lender to send a notice, commonly called a "breach letter," informing you that the loan is in default before the lender can accelerate the loan. The breach letter allows you to cure the default and avoid foreclosure.

When Can Foreclosure Start in Hawaii?

Under federal law, the servicer usually can't officially begin a foreclosure until you're more than 120 days past due on payments, subject to a few exceptions. (12 C.F.R. § 1024.41 (2025).)

This 120-day period provides most homeowners ample opportunity to submit a loss mitigation application to the servicer.

What Is the Foreclosure Process in Hawaii?

Hawaii foreclosures can be judicial or nonjudicial. Some lenders use judicial foreclosures to bypass Hawaii's Mortgage Foreclosure Dispute Resolution Program (see below).

How the Judicial Foreclosure Process Works in Hawaii

A judicial foreclosure begins when the lender files a lawsuit asking a court for an order allowing a foreclosure sale. The lender gives notice of the suit by serving you a summons and complaint. (Haw. Rev. Stat. § 667-1.5 (2025).)

What Happens If You Don't Respond to a Hawaii Foreclosure?

If you don't respond to the suit, the lender will ask the court for, and probably receive, a default judgment, allowing it to hold a foreclosure sale.

What Happens If You Respond to a Hawaii Foreclosure?

But if you choose to defend the foreclosure lawsuit, the case will go through the litigation process. The lender might then ask 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 critical aspects of the case.

If the court grants summary judgment for the lender—or you lose at trial—the judge will enter a judgment and order your home sold at auction.

Notice of the Foreclosure Sale

A notice of the sale must appear in a newspaper for three weeks or the lender has to publish it on a state website at the discretion of the agency that maintains the site and publish it at least once. (Haw. Rev. Stat. § 667-20 (2025).)

Nonjudicial Foreclosures in Hawaii

In a nonjudicial foreclosure, the lender must serve a notice of default and intention to foreclose, and mail or deliver a notice of sale, to the borrower. (Haw. Rev. Stat. §§ 667-22, 667-27 (2025).)

Notice of default and intention to foreclose. The notice must include a date by which the default must be cured, which must be at least 60 days after the date of the notice of default and intention to foreclose. (Haw. Rev. Stat. § 667-22 (2025).) You have the right to cure the default, but must do it no later than three business days before the sale. (Haw. Rev. Stat. § 667-27 (2025).)

Notice of sale. The notice must be published once each week for three consecutive weeks (that is, three publications). The foreclosure sale can take place no sooner than 14 days after the publication date of the third public notice advertisement. The sale may 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).) Or the notice may be published online not less than 28 days before the date of the public sale. If the notice of sale is published online, it must also be published in a newspaper (at least once) at least 14 days before the sale. (Haw. Rev. Stat. § 667-27 (2025).)

Hawaii's Mortgage Foreclosure Dispute Resolution Program

As part of a nonjudicial foreclosure, the owner-occupant may opt to participate in Hawaii's Mortgage Foreclosure Dispute Resolution (MFDR) Program, which is a foreclosure mediation procedure. In Hawaii's MFDR 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 (2025).)

Lenders routinely file judicial foreclosures in Hawaii to avoid having to participate in this kind of dispute resolution.

Conversion of Nonjudicial Foreclosure to Judicial Foreclosure in Hawaii

Homeowners of residential real estate facing a nonjudicial foreclosure generally have the option to convert a nonjudicial foreclosure to a judicial one. But you can't convert if you elected to participate in the MFDR program. (Haw. Rev. Stat. § 667-53 (2025).)

To determine whether you should consider converting your foreclosure and learn about your options, consult an attorney familiar with the Hawaii foreclosure process. Converting a nonjudicial foreclosure to a judicial one might be a good idea, particularly if you have a strong defense to the foreclosure. Or it might be in your best interest to stick with the nonjudicial process and participate in the MFDR program.

Foreclosure Auctions in Hawaii

At the foreclosure sale, the lender usually makes a credit bid. The lender can bid up to the total amount owed, including fees and costs, or it may bid less. In some foreclosures, including Hawaii judicial foreclosures, when the lender is the high bidder at the sale but bids less than the total debt, it can get a deficiency judgment (see below) against the borrower.

The property becomes "Real Estate Owned" (REO) if the lender is the highest bidder. But if a bidder, say a third party, is the highest bidder and offers more than you owe, and the sale results in surplus funds—that is, money over and above what's needed to pay off all the liens on your property—you're entitled to that money.

Hawaii Foreclosure Prevention Options

A few potential ways to stop a foreclosure include reinstating the loan, redeeming the property before the sale, or filing for bankruptcy. Of course, if you can work out a loss mitigation option, like a loan modification, that will also stop a foreclosure. Or you might be able to work out a short sale or deed in lieu of foreclosure and avoid a foreclosure (but you'll have to give up your home).

Reinstating the Loan (Curing the Default)

Hawaii law doesn't give the borrower the right to reinstate the loan in a judicial foreclosure. But your loan paperwork might allow for reinstatement. Check your mortgage to see if you get the right to complete a reinstatement and the deadline to do so. If not, the lender might agree to let you reinstate your loan.

In a nonjudicial foreclosure, you may reinstate up to three business days before the sale. (Haw. Rev. Stat. § 667-27, § 667-28(d) (2025).)

Does Hawaii Have a Right of Redemption After Foreclosure?

One way to stop a foreclosure is by "redeeming" the property. To redeem, you must pay off the full loan amount before the foreclosure sale.

Some states also provide foreclosed borrowers with a redemption period after the foreclosure sale, during which they can buy back the home. Hawaii law, however, doesn't provide a post-sale right of redemption for judicial or nonjudicial foreclosures. (Haw. Rev. Stat. § 667-27, § 667-28(d) (2025).)

Filing for Bankruptcy

If you're facing a foreclosure, filing for bankruptcy might help. In fact, if a foreclosure sale is scheduled to occur in the next day or so, the best way to stop the sale immediately is by filing for bankruptcy.

Once you file for bankruptcy, something called an "automatic stay" goes into effect. The stay functions as an injunction prohibiting the lender from foreclosing on your home or trying to collect its debt, at least temporarily.

In many cases, filing for Chapter 7 bankruptcy can delay the foreclosure by a matter of months. Or, if you want to save your home, filing for Chapter 13 bankruptcy might be the answer. To find out about the options available, speak with a local bankruptcy attorney.

Are Deficiency Judgments Allowed in Hawaii?

In a foreclosure, the borrower's total mortgage debt sometimes exceeds the foreclosure sale price. The difference between the total debt and the sale price is called a "deficiency." For example, say the total debt owed is $700,000, but the home sells for $650,000 at the foreclosure sale. The deficiency is $50,000.

In some states, the lender can seek a personal judgment against the debtor to recover the deficiency. Generally, once the lender gets a deficiency judgment, the lender may collect this amount—in our example, $50,000—from the borrower.

In a judicial foreclosure, the foreclosing lender can get a deficiency judgment. However, a deficiency judgment isn't allowed after a nonjudicial foreclosure 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).)

Where to Find Hawaii's Statutes and Federal Foreclosure Laws

In this article, you'll find details on foreclosure laws in Hawaii, with citations to statutes so you can learn more. Statutes change, so checking them is always a good idea.

How to Find Federal Foreclosure Laws

If you're looking for federal laws, you might want to visit the Library of Congress's legal research website, which provides links to federal regulations and federal statutes.

How to Find Hawaii Foreclosure Laws

To find Hawaii's foreclosure laws, search online for "Hawaii statutes" or "Hawaii laws." Make sure you're reading the most recent, official laws. Usually, the URL will end in ".gov" or the statutes will be on an official state legislature webpage.

Hawaii Foreclosure Help

How courts and agencies interpret and apply laws can change. And some rules can even vary within a state. These are just some of the reasons to consider consulting a lawyer if you're facing a foreclosure.

If you have questions about Hawaii's foreclosure process or want to learn about potential defenses to a foreclosure and possibly fight the foreclosure in court, consider talking to a foreclosure attorney. It's also a good idea to talk to a HUD-approved housing counselor about different loss mitigation options.