How to avoid foreclosure in Hawaii

How foreclosure works in Hawaii, step by step

1. You fall behind on payments

   Under federal rules, the servicer generally cannot start a foreclosure until you are more than 120 days behind. Use this time to contact your servicer, apply for help in writing, and talk to a free housing counselor or Legal Aid.

   12 C.F.R. § 1024.41(f)

2. The lender files a foreclosure lawsuit

   The lender files a complaint in the circuit court for the island where the home is located. For a home loan, the lender's attorney must file a signed statement that the documents were checked and are accurate. You are served with a summons and complaint and have 20 days to file a written answer. Do not skip this step: an answer is how you raise defenses and stay part of the case.

   HRS §§ 667-1.5, 667-17; Haw. R. Civ. P. 12(a)

3. The judge decides the case

   The circuit court, without a jury, decides how much is owed and whether to order foreclosure. If the lender wins, the judge appoints a neutral commissioner to sell the home. On Hawaii Island, owner-occupants can ask for mediation with the lender before the judge hears the case. Even after a case starts, your lender may still let you reinstate, so ask.

   HRS §§ 667-1.5, 667-41

4. The sale is advertised and the auction is held

   The commissioner must publish notice of the sale in a newspaper once a week for three weeks in a row, and the auction cannot be held sooner than 14 days after the third ad. The highest bidder wins, and the lender can bid what it is owed.

   HRS § 667-20

5. The court approves the sale and the money is paid out

   The sale is not complete until the court approves it. The court tells the commissioner whom to pay: lienholders in order of priority, and any money left over goes to you. If the sale did not cover the debt, the lender can ask the court for a deficiency judgment against you.

   HRS §§ 667-3, 667-10, 667-41

6. Moving out

   After the court approves the sale and the buyer gets title, the buyer can get a court order for possession if you have not moved. Ask Legal Aid or a lawyer how much time you have in your case, because the court sets it.

7. If the lender uses the power of sale process instead

   The lender must serve a notice of default that gives you at least 60 days to cure, and must file it with the state when the home is owner-occupied. As an owner-occupant you then have 30 days to choose the state's Mortgage Foreclosure Dispute Resolution program, or 30 days after service to convert the case to a court foreclosure. The sale cannot be held until at least 60 days after the notice of sale is sent out, and you can still cure up to three business days before the sale.

   HRS §§ 667-22, 667-25, 667-27, 667-53, 667-78

Hawaii foreclosure deadlines to know

These are the periods written into the law. Your own dates are on the notices you received. If a notice and this page disagree, trust the notice and ask a counselor or lawyer.

Your rights as a homeowner in Hawaii

Other Hawaii protections

• Right to move a power of sale foreclosure into court

  An owner-occupant can convert a nonjudicial foreclosure to a court foreclosure by filing a petition in circuit court within 30 days after the notice of default is served. Filing automatically pauses the nonjudicial foreclosure. The fee is $250, and everyone on the loan must agree in court filings within 45 days. You cannot use both conversion and dispute resolution.

  HRS § 667-53

• No power of sale completion during loan modification talks

  A lender may not complete a nonjudicial foreclosure during good-faith loan modification negotiations, or while you are being evaluated for or are in a federal loan modification program. Violations count as unfair or deceptive practices under state law.

  HRS §§ 667-56, 667-60

• Lender's attorney must vouch for the paperwork

  In a court foreclosure of residential property, the lender's attorney must file a signed affirmation that the documents were reviewed and are accurate when the case is filed.

  HRS § 667-17

• The lender is bound by what its servicer tells you

  A foreclosing lender is bound by the agreements, promises and representations made on its behalf by its employees, agents and mortgage servicers. Keep written records of everything you are told.

  HRS § 667-59

• Second chance bids for residents and nonprofits (2025 law)

  Since July 1, 2025, a power of sale auction is not final for at least 15 days and up to 45 days, so that tenants living in the home, people who will live in it, housing nonprofits, community land trusts and government agencies can match or beat the winning bid. Lenders also cannot bundle several homes into one sale. The borrower and the borrower's child, spouse or parent do not qualify as these bidders.

  HRS §§ 667-29.5, 667-36.5

Hawaii mortgage assistance programs

If the home is sold for more than you owe

Sale money is paid first to the foreclosing lender and other lienholders in order of priority. Anything left over belongs to the owner. In a court foreclosure, the court tells the commissioner whom to pay, so make sure the court and the commissioner have your current address and ask about any surplus at the hearing where the sale is approved. In a power of sale foreclosure, the lender pays out the money and must give any remaining surplus to the borrower.

HRS §§ 667-3, 667-10, 667-31

Ways to avoid foreclosure

Most of your options come from federal rules and from whoever owns or insures your loan, so they work the same way in Hawaii as anywhere else. What changes by state is how much time you have to use them.

• Repayment plan
• Forbearance
• Payment deferral or partial claim
• Loan modification
• Reinstatement
• Short sale
• Deed in lieu of foreclosure
• Chapter 13 bankruptcy