Hawaii has one of the longest average foreclosure timelines in the country — ATTOM data shows an average of over 2,000 days, driven largely by its mandatory Mortgage Foreclosure Dispute Resolution Program and court backlogs. With markets across Honolulu County (Oahu), Maui County, Hawaii County (Big Island), and Kauai County, Hawaii offers foreclosure inventory in the most expensive real estate market in the United States, where even distressed properties carry extraordinary values.
Hawaii allows both judicial and non-judicial foreclosure under HRS Chapter 667. In practice, most lenders now use judicial foreclosure — Hawaii’s non-judicial process was substantially restricted after the Mortgage Foreclosure Dispute Resolution Program (MFDRP) was implemented, and many lenders switched to judicial to bypass the MFDRP requirements. Timeline: 6 to 12 months for non-judicial (when used); 12 to 24+ months for judicial (most common).
Judicial process: The lender files a complaint in the Circuit Court, serves the borrower, and after court proceedings a commissioner conducts the sale. Commissioner’s auctions are held at the courthouse. Deposit typically 10% at auction, balance within the court-specified period.
Non-judicial process (when used): Subject to the MFDRP program for owner-occupied properties. The trustee conducts the sale after mandatory mediation. Full cash payment required.
No general post-sale right of redemption after either type of Hawaii foreclosure sale.
Honolulu County (Oahu) — Overwhelmingly dominates Hawaii foreclosure volume. Military (Pearl Harbor, Hickam, Schofield Barracks, Kaneohe), tourism, and state government economy. Foreclosure inventory spans all price ranges from Waipahu and Ewa Beach condos to Kailua and Hawaii Kai higher-value properties. Even distressed Oahu condos rarely sell below $300,000. Maui County (Maui, Molokai, Lanai) — Tourism economy. Lahaina fire recovery has significantly affected West Maui inventory. Higher price points, thin foreclosure inventory but extraordinary values when properties appear. Hawaii County (Big Island) — Most geographically diverse county. Tourism and agriculture. More affordable than Oahu or Maui. Active foreclosure inventory in Hilo and Kona. Lava zone research essential for any Big Island property. Kauai County — Smallest market. Tourism economy. Very thin but high-value foreclosure inventory.
Title search through the Bureau of Conveyances (Hawaii’s statewide land records office) before every bid — Hawaii has a statewide land records system, not county-level. Lava zones (Big Island): Hawaii County has 9 lava hazard zones — Zone 1 (highest risk) and Zone 2 are essentially uninsurable and often unmortgageable. Research any Big Island property’s lava zone before bidding. Leasehold vs. fee simple: Hawaii has a significant leasehold property market — many condos and some single-family homes are on leasehold land where you own the structure but lease the land. Understand whether you’re buying fee simple (own the land) or leasehold (lease the land) and confirm lease terms. Property taxes: Hawaii has relatively low property tax rates compared to mainland states but high assessed values — confirm annual tax costs. Condo AOAO fees: Hawaii condos are governed by Associations of Apartment Owners (AOAOs) — research monthly fees and any special assessments.
Commissioner’s auction: 10% deposit at auction, balance within court period. Cash or hard money. Pre-foreclosure/REO: Conventional, FHA, VA (strong military market on Oahu), USDA (limited rural areas). Hawaii Housing Finance and Development Corporation (HHFDC) offers homebuyer programs. High Hawaii prices mean jumbo loans are common across all islands.
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