Foreclosure is a legal prcedure instituted by a mortgage holder to cause the sale of property encumbered by a mortgage to satisfy the debt secured by that mortgage

NON JUDICIAL FORECLOSURE involves a public sale carried out by or on behalf of the mortgage holder pursuant to a power of sale contained in the mortgage. This process does NOT involve a court action

  • the power of sale remedy must be contained in the mortgage
  • timely notices must be served as required by the mortgage, and must also be served, posted and published as required by Chapter 667, Hawaii Revised Statutes
  • no commissioner is appointed; sale is usually conducted by a representative of the mortgage holder
  • title derived through the sale may be free and clear of encumbrances that were subordinate to the mortgage being forclosed if proper notices have been served
  • the notice of sale and an affidavit describing the mortgage holder's actions must be recorded in the Bureau of Conveyances or the Office of the Assistant Registrar of the Land Court within 30 days of the public auction
  • a separate legal action must be filed if possession is an issue
  • most title companies will require the recordation of a deed to the buyer and the waiver of any deficiency judgment in order to insure title
  • the entire process usually takes between 4 to 8 months