Hawaii foreclosure laws: how the process works and how long it takes

• HRS § 667-1 to 667-4: Traditional judicial foreclosure process. Lender files a complaint in Circuit Court, obtains a decree of foreclosure, and the property is sold at a court-ordered sale. Court must confirm the sale. This is the more protective track for borrowers due to full judicial oversight.
• HRS § 667-21 to 667-42 (Part II): Current non-judicial foreclosure framework enacted in 2012, replacing the older Part I non-judicial process. Establishes detailed requirements for pre-foreclosure notice, public notice of sale, dispute resolution offer, and power of sale. Requires the foreclosing mortgagee to file a notice of intent to foreclose with the DCCA, offer dispute resolution to the borrower, and conduct a public sale. Includes consumer protections not present in the older Part I.
• HRS § 667-71 to 667-86: Establishes the Mortgage Foreclosure Dispute Resolution Program administered by the DCCA. Owner-occupants have 30 days after the DCCA mails its notification to opt into dispute resolution. A neutral is assigned to facilitate negotiation between borrower and lender. This program significantly extends the non-judicial timeline and provides borrowers an opportunity to negotiate alternatives to foreclosure.
• HRS § 667-5 to 667-10 (Part I — old law): Original non-judicial foreclosure framework. Largely superseded by Part II (2012) for residential mortgage foreclosures. May still apply in limited circumstances for commercial properties or mortgages executed before the Part II effective date. Less consumer protection than Part II — no mandatory dispute resolution offer.
• HRS § 651-92: Establishes homestead exemption: $30,000 for head of family or person 65 or older, $20,000 for all others. Protects equity in the homeowner's primary residence from judgment creditors. Does NOT apply to mortgage foreclosure — the exemption does not prevent a mortgagee from foreclosing on the security instrument.

After a Part II sale is completed (when the sale affidavit and deed are recorded), a former owner who stays in the home is treated as a tenant at sufferance, and the purchaser may bring a summary possession, ejectment, or other court action to get a writ of possession; the court awards the winning side its reasonable attorney's fees and costs, paid by the losing side. The former owner is not entitled to any post-sale redemption period. The federal Protecting Tenants at Foreclosure Act provides 90-day notice to bona fide tenants, and bona fide tenants with leases can generally stay until the lease ends. Hawaii's Residential Landlord-Tenant Code (HRS § 521) governs the eviction process for tenants.

In a Part II sale, the proceeds go to liens with priority as a matter of law, the foreclosing mortgagee's attorney's fees and costs, the costs of the sale, and the amount owed to the foreclosing mortgagee, and then to junior lienholders in order of priority; any remaining surplus belongs to the former owner (the mortgagor). The foreclosing mortgagee must distribute the proceeds this way. In judicial foreclosure, the court oversees surplus distribution.

Generally first in time, first in right. Hawaii recording statutes (Bureau of Conveyances and Land Court) govern lien priority. Hawaii has a dual recording system: unregistered land uses the Bureau of Conveyances; registered (Torrens) land uses the Land Court. Property tax liens have priority over all other liens including first mortgages. Counties enforce property tax collections.

HRS § 657-1 sets a six-year limit for actions to recover a debt founded on a contract, obligation, or liability. That section does not separately address actions to foreclose a mortgage on real property. For a note payable at a definite time, six years after the due date or, if the due date is accelerated, six years after the accelerated due date. Different rules apply to notes payable on demand. After a non-judicial Part II foreclosure of residential property, HRS § 667-38 bars the mortgagee or anyone else other than an association from pursuing or obtaining a deficiency judgment against an owner-occupant unless the debt is secured by other collateral. Consult a local attorney for specific deadlines.

• Unpaid property taxes: Property tax liens have priority over mortgage liens in Hawaii. Delinquent property taxes are enforced by the county (Hawaii has four counties: Honolulu, Maui, Hawaii, Kauai). Tax liens are recorded with the Bureau of Conveyances (or Land Court for registered land). The county may sell the tax lien or foreclose directly. Property owners have a redemption period to pay delinquent taxes plus penalties and interest before the tax deed is issued.

$30,000 for head of family or person 65 or older; $20,000 for all others. Protects equity in your primary residence from judgment creditors. Does not stop mortgage foreclosure. Hawaii's homestead exemption under HRS § 651-92 is limited to $30,000 or $20,000 of equity, measured over and above liens recorded before the creditor's lien. The exemption does not apply to mortgage foreclosure — it only protects against other judgment creditors. The exemption must be claimed (it is not automatic in all circumstances).

Hawaii has its own servicemember protection law (HRS chapter 657D) for people on state active duty in the state military forces or on full-time National Guard duty. For a mortgage on property the servicemember owned before that service began, a sale or foreclosure made during the service or within one year after it is not valid unless it is made under an agreement the chapter allows or on a court order granted beforehand. Federal SCRA protections are also critically important in Hawaii due to the state's large active-duty military population. Hawaii hosts Joint Base Pearl Harbor-Hickam, Schofield Barracks, Marine Corps Base Hawaii (Kaneohe Bay), Fort Shafter, Tripler Army Medical Center, and multiple other installations. Military legal assistance offices at Hawaii installations provide free foreclosure counseling.

Under the federal rule, qualified principal-residence debt may be excluded from income if canceled before January 1, 2026, or under an arrangement entered into and documented in writing before that date. Bankruptcy or insolvency exclusions may apply separately. Hawaii generally follows the federal discharge-of-debt rules in Internal Revenue Code section 108, so a federal exclusion for canceled mortgage debt, if available, may also apply for Hawaii income tax.