In Hawaii foreclosure law Judicial Foreclosure and non-Judicial foreclosure both approaches are used. In Hawaii state foreclosure timeline ranges up to 60 days. Hawaii foreclosure law gives endorsement to deed of trust and mortgage as primary security instruments. Hawaii foreclosure law does not authorize the statutory right of redemption. However deficiency judgments are allowed by Hawaii Foreclosure law.
By way of non-judicial or judicial foreclosure process lenders in the state of Hawaii may foreclose on deeds of trusts or mortgages in default occurs.
Judicial foreclosure process is by and large used when a “no power of sale” is there in the mortgage or deed of trust. A power of sale clause authorizes the sale or transfer of property as outlined by the terms of that clause in a deed of trust or mortgage
While using judicial foreclosure, the foreclosure process is performed in accordance to the term and conditions of that clause.
In case homeowner defaults non-judicial foreclosure process allows the lender to sell the property and pay off the balance of the loan. Non-judicial foreclosure method is favored when “power of sale clause” exists in the deed of trust or mortgage document. A “power of sale clause” in a deed of trust or mortgage means that in case of default borrower has pre-authorized the sale of property to pay off the balance on a loan. The power to sell may be concluded by the lender or their representative in conditions where a power of sale exists. The modus operandi for this Non-Judicial Foreclosure is elucidated in the “Power of Sale Foreclosure Procedure” listed below:
Power of Sale Foreclosure Procedure
If the power of sale clause states the time, place, and terms of sale then the procedure must be followed according to the specifications. And in case Power of sale clause has no specification regarding time, place and terms of sale than it will be carried out in following way:
The notice issued to foreclose must be published in newspaper having general circulation in the county in which the property is located every week for three (3) consecutive weeks. Copies of the notice must be mailed through certified mail to the mortgagor, the borrower, any previous or junior creditors, to the director of taxation of state and to any other person entitled to receive notice. It is also required to post the notice on the property not under twenty-one (21) days past to the day of sale
Said notice must contain the following conditions:
- The date, time, and place where proposed sale will be conducted.
- The unpaid balance the borrower has to pay to the mortgagee under the mortgage agreement.
- Complete description regarding the property to be mortgaged, with the complete address or sketch of the location of the mortgaged property, and the tax chart of the mortgaged property.
- Name of the mortgagor, the borrower, the lender, name of any previous or junior creditors, the name, telephone contacts and address of the State where public sale have to be conducted.
- Complete outline of terms and conditions of the public sale.
The borrower by paying the lien debt along with the costs and reasonable attorney’s fees, may save the default and stop the sale up until three (3) days past to the sale, or else agreed to between the lender and the borrower.
The sale must be made at auction to the highest bidder, which may be held not before than fourteen (14) days after the last advertisement is published.
Proposed foreclose sale for which notice have been given may be postponed from time to time by public announcement made by the lender or their representative.
Right of redemption is not available in Hawaii.
Referenced From : http://www.bankforeclosurelaws.com/hawaii-foreclosure-law.html