Important Things to Know on Hawaii Foreclosures
It would be very important that you discover the consequences which you may expect from the Hawaii foreclosures. Know that they are predominantly judicial. That was not the case at all times though. In the year 2011, Hawaii actually passed the Mortgage Foreclosure Dispute Resolution Program that only applies to the nonjudicial foreclosures. With such regulation, the lender in search for nonjudicial foreclosure must give foreclosure mediation to a homeowner. To circumvent this program, various Hawaii lenders are going for judicial foreclosure. Because of this, understanding the Hawaii property laws will help you out in doing serious damage control as the foreclosure looms. Know the tips on how you can surely avoid the foreclosure.
These are what you must know. In the Hawaii law, if such nonjudicial foreclosure is not contested, the lender can foreclose on such property in as short as 2 to 3 months. With some legal actions, there can be a longer process. This is how important information is. Through having the right knowledge, you may stop foreclosure. These are what you must know for you to know how such Hawaii foreclosure laws really work.
You should understand that the Hawaii law actually recognizes a couple types of foreclosure and they are nonjudicial foreclosure and the judicial foreclosure. These two are actually governed by various laws. In the judicial foreclosures, such Dodd-Frank Act of 2010 actually prevents the lenders have initiating the foreclosure unless the homeowner is delinquent for 120 days. The lender can then file a lawsuit after 120 days which is compliant under the Hawaii law. A homeowner would then get a copy of the same plus summons.
With such, the homeowner has 20 days to be able to respond to the lawsuit and when one fails, then the court is going to rule in the lender’s favor. Even after the lender has won the case, the property sale is still not legal until such notice of sale is published in the newspaper for a span of 3 weeks.
The nonjudicial foreclosures don’t follow that court process. What such lender has to do is to satisfy those requirements outlined in the Hawaii Revised Statutes Section 667. There would be a notice of the lender’s intent to have the property foreclosed and this must be published once weekly for three weeks. The property sale only takes place at least 14 days after such notice has been published. Also, a notice of sale should be posted on the property for at least twenty-one days prior to the sale.
Nonjudicial foreclosure in Hawaii is only possible where such mortgage has a power of sale clause. When this isn’t the case, then the lender can just go for the judicial foreclosure.