Can the lender come after you for the rest? Deficiency judgments in Hawaii

Deficiency rules in Hawaii, point by point

• Court foreclosure: the lender can ask for a deficiency

  After the commissioner's sale is confirmed

  In a judicial foreclosure, the court tells the commissioner whom to pay from the sale. If the home did not sell for enough to pay the loan, the lender has the right to ask the court for a deficiency judgment against you for the difference.

  HRS § 667-41

• Power of sale: no deficiency against an owner-occupant

  After a nonjudicial sale

  When a residential home is foreclosed by power of sale, the lender cannot pursue or obtain a deficiency judgment against an owner-occupant unless the debt is secured by other collateral. An owner-occupant is someone whose home was their main residence for at least 200 days in a row when the notice was served.

  HRS §§ 667-38, 667-55

• Think before converting to a court case

  Within 30 days after the foreclosure notice

  An owner-occupant can convert a power of sale foreclosure into a court case. The required notice warns that after conversion the lender can seek a deficiency judgment, which it could not get in the nonjudicial case. Talk with a lawyer before you file to convert.

  HRS § 667-55

• How the court sets the amount

  At or after the confirmation hearing

  Hawaii's foreclosure chapter does not set a fair market value cap for court foreclosures. The amount is decided in the court case, so you can raise objections about the sale price or the amount claimed at the hearing.

  HRS § 667-41

• Short sale and deed in lieu

  When you sign the agreement

  Hawaii has no special statute on deficiencies after a short sale or deed in lieu. The written agreement with your lender controls, so ask that it clearly says the lender waives any remaining balance.

• How long a judgment lasts and how it is collected

  10 years, extendable to 20

  A Hawaii judgment is presumed paid after 10 years unless the court extends it, and it can never be extended beyond 20 years from the original date. Hawaii law limits how much of your wages can be taken: 5 percent of the first $100 a month, 10 percent of the next $100, and 20 percent of the rest.

  HRS §§ 657-5, 652-1

• If you get a deficiency motion or lawsuit

  Before the response deadline

  Check whether your foreclosure was judicial or by power of sale and whether you were an owner-occupant. Contact the Legal Aid Society of Hawaii or the Hawaii State Bar Association Lawyer Referral and Information Service, listed on our Hawaii foreclosure help page.

The short answer in Hawaii

Common questions in Hawaii