What is a Foreclosure?
A foreclosure is a legal action that permits a lender to acquire
ownership and title from a delinquent borrower.
The Types of Foreclosure
There are two types of foreclosure systems that follow the two types
of secured real estate loans.
- There is a judicial foreclosure system in Mortgage States.
- There is a non-judicial foreclosure system in Trust Deed States.
- A few states allow both Judicial and Non-Judicial foreclosures
depending on the loan documents.
Length of Time Pre-Foreclosure
The length of time from commencement of the legal action to the legal
sale of the property for Non-Judicial Foreclosures is broken down into
the time it takes to process the documents through the legal system (220
days) and the number of days notice one must give of the sale by
publication (60 days).
Redemption Period
There is no additional redemption period in the State of Hawaii.
IRS Liens
The IRS, by virtue of Federal law, has 120 days to redeem property.
In practice they seldom do this as this means writing a check to the
buyer. Sometimes they will agree to waive this redemption period.
Disclosure
We are not attorneys are cannot give you legal advice. We believe
this information to be accurate, but please check with a qualified real
estate attorney in the state in question before making any decision
based on this information.
Our intent is to give you an overview and make you aware that laws
differ, sometimes dramatically, from state to state.
The states strike differing balances between protecting the homeowner
from losing their home quickly, perhaps because of a temporary financial
crisis on the one hand, and the legitimate rights of the lender to try
to recover the money they have lent in good faith expecting to be paid
back! How long should a borrower be permitted to live in a house without
paying a dime in mortgage payments? I guess that depends if you are the
borrower or the lender!
Non-judicial sales are almost always quicker than judicial sales.
Summary
Hawaii
Foreclosure Laws
• Judicial Foreclosure Available: Yes
• Non-Judicial Foreclosure Available: Yes
• Primary Security Instruments: Deed of Trust, Mortgage
• Timeline (JF): 220 days – auction; 260 confirmation; 320 conveyance;
• Timeline (NJ): 160 days – auction; 195 conveyance;
• Right of Redemption: No
• Deficiency Judgments Allowed: Yes
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