- Who sends it
- The Hawaii Department of Commerce and Consumer Affairs, by registered or certified mail, within 10 days after the lender files its notice
- What it starts
- 30 days, from the department's mailing, for the department to receive your election form, owner-occupant proof and $300 fee
- Do this first
- Find the mailing date, call the MFDR program at (808) 586-2886, and book a housing counselor
What this notice is in Hawaii
Under HRS § 667-77, within 10 days after the lender files a Notice of Default and Intention to Foreclose with the department, the department must mail you written notification by registered or certified mail. It goes to the property address and any other address the lender gave.
It must include information about the program, a form to elect or waive participation with instructions and the department's mailing address, what owner-occupant proof you must provide, what information you must give the lender and the neutral, a statement that you must see an approved housing counselor or budget and credit counselor at least 30 days before the first session, counselor contact lists, and the department's contact information.
What it does and does not mean
- It applies only to power of sale (nonjudicial) foreclosures of homes lived in by an owner-occupant. It does not cover court foreclosures or foreclosures converted to court.
- If you elect it, the department's written notice that a case has been opened acts as a stay of the foreclosure (HRS § 667-83). The lender cannot foreclose until the neutral's closing report is filed, unless a statement of noncompliance was issued against the lender.
- The stay does not extend the cure deadline in your notice of default (HRS § 667-83(a)(2)).
- It does not require the lender to modify your loan. The extras file says the lender's representative must have authority to modify the loan or direct access to someone who does (HRS § 667-80).
The deadline it starts and how to count it
- Elect: the department must receive your completed election form, a certification under penalty of perjury that you are an owner-occupant with supporting documents, and a $300 fee no later than 30 days after it mailed the notification (HRS § 667-78(a)). Count 30 calendar days from the mailing date, and treat it as a receipt deadline, so send early.
- Proof: the statute lists recent utility bills, voter registration records, real property tax records or state identification as examples.
- Waiver: if the form and fee are not received in time, you are treated as waiving the program, the department tells the lender within 10 days, and the lender can continue the nonjudicial foreclosure (HRS § 667-78(b), (c)).
- After you elect: the extras file says the department mails a case opening notice within 20 days and sets the session 40 to 70 days out, and you must see a counselor at least 30 days before and exchange documents at least 15 days before (HRS §§ 667-79, 667-80).
The Hawaii foreclosure mediation page explains the session and outcomes.
What to do this week
- Find the mailing date on the department's notification and count 30 days.
- Decide with Legal Aid or a counselor whether to elect dispute resolution or file a conversion petition to court. You cannot do both (HRS § 667-53(c)).
- Gather owner-occupant proof: a recent utility bill, voter registration, property tax record or state ID.
- Send the form, proof and $300 fee so they arrive well before the deadline. The program can be filed online through the department's MFDR portal, and the program page lists (808) 586-2886.
- Book an approved housing counselor now, so you meet the 30-days-before-the-session rule.
- Start gathering pay stubs, tax returns and any past modification records for the document exchange.
Help and scam warnings
- The $300 program fee goes to the department, not to a private company. Be wary of anyone who offers to "handle" MFDR for a fee.
- Distressed property consultants cannot take any payment until every promised service is finished (HRS chapter 480E, per the state file).
- Free help: Legal Aid Society of Hawaii at 808-536-4302 or 1-800-499-4302, and HUD-approved housing counselors listed in your notice. See the Hawaii foreclosure help page.
The rest of the Hawaii process
See how foreclosure works in Hawaii, the timeline, ways to stop it and free help in Hawaii, or read the national guide to this letter.
Common questions
What happens if I miss the 30-day deadline for Hawaii dispute resolution?
You are deemed to have waived the program for that foreclosure notice, the department notifies the lender, and the lender may continue the power of sale foreclosure (HRS § 667-78(b), (c)). You may still have the separate 30-day conversion right if service was recent, so check dates with a lawyer.
Who qualifies for Hawaii's Mortgage Foreclosure Dispute Resolution program?
Owner-occupants in a power of sale foreclosure of residential property: you own an interest in the home and it has been your primary residence for at least 200 days in a row when the notice is served. Association lien foreclosures and converted cases are not covered.
Does Hawaii MFDR stop my foreclosure?
The department's notice that your case is open stays the foreclosure until the neutral's closing report is filed (HRS § 667-83). It does not extend the date to cure stated in your notice of default.
Is the Hawaii MFDR program still running?
It is in the current law, and the department's program page and online portal are live. The state file could not confirm current caseload, so call (808) 586-2886 to confirm before you rely on it.
Other Hawaii letters
- Summons and complaint for foreclosure (foreclosure by action)Most Hawaii mortgage foreclosures are lawsuits in the circuit court for the island where the home is. The summons and complaint start the case, and you have 20 days after you are served to file a written answer. For a home, the lender's attorney must also file a signed affirmation that the papers were checked and are accurate.
- Notice of Default and Intention to ForecloseIf your Hawaii lender wants to foreclose without a lawsuit, it must serve you a Notice of Default and Intention to Foreclose. It must give you at least 60 days to cure. If you are an owner-occupant, it also starts two separate 30-day windows: one to elect the state's dispute resolution program and one to convert the case to a court foreclosure. You can use only one.
- Public Notice of Public SaleIn Hawaii, the auction of a foreclosed home is announced by a public notice of the public sale. In a court foreclosure a court-appointed commissioner publishes it. In a power of sale foreclosure the lender does, and the notice must say you can cure until three business days before the sale. Either way it is published for three weeks, and the sale cannot be sooner than 14 days after the third ad.