Hawaii at a glance
Checked against the sources cited, 2026-09-19
| Topic | What the law says, and where it says it |
|---|---|
| How foreclosure works here | Hawaii has two foreclosure routes. A lender can foreclose by action in the circuit court, where the court enters a judgment of foreclosure. The statutes also provide a power of sale process, without a court case, as an alternative to foreclosure by action. Haw. Rev. Stat. § 667-1.5 (foreclosure by action); Haw. Rev. Stat. § 667-21 (power of sale process) Show the source textThe power of sale process in this part is an alternative to the foreclosure by action in part IA. |
| Who holds foreclosure surplus | In a power of sale (non-court) foreclosure, the foreclosing lender distributes the sale proceeds. Liens and the foreclosure costs are paid in order of priority, and any surplus left after all valid lien creditors are paid goes to the mortgagor (the borrower). In a foreclosure by court action, creditors are paid by lien priority and the remainder, if any, is paid over to the owner of the mortgaged property. Haw. Rev. Stat. § 667-31(b) (power of sale); Haw. Rev. Stat. §§ 667-3, 667-10 (foreclosure by action) Show the source textAny remaining surplus after payment in full of all valid lien creditors shall be distributed to the mortgagor. |
| Tax sale excess proceeds | Real property tax sales in Hawaii are run by each county under its own ordinances; the former state real property tax chapter (Haw. Rev. Stat. ch. 246) was repealed in 2016. In the City and County of Honolulu the property itself is sold at public auction and the buyer gets a tax deed, but the taxpayer may redeem within one year of the sale. The ordinance says the surplus is to go to the person entitled to it; if the director is in doubt about who that is, the director may refuse to distribute it and a claimant may sue in the first circuit court. The ordinance does not state a deadline to claim the surplus. Revised Ordinances of Honolulu §§ 8-5.2, 8-5.6, 8-5.9 Show the source textIf the director is in doubt as to the person or persons entitled to the balance of the fund, the director may refuse to distribute the surplus and any claimant may sue the director in the first circuit court. |
| Redemption after the sale | Hawaii's foreclosure chapter does not list a redemption period after a mortgage foreclosure sale. In a power of sale foreclosure, once the sale affidavit and the conveyance document are recorded (10 to 45 days after the public sale), everyone claiming through the borrower is barred from any right or claim to the property, except as otherwise provided by law. Tax sales are different: in Honolulu the taxpayer may redeem within one year of the tax sale (Revised Ordinances of Honolulu § 8-5.6). Haw. Rev. Stat. § 667-33(a), (b) Show the source textshall be forever barred of and from any and all right, title, interest, and claims at law or in equity in and to the mortgaged property and every part of the mortgaged property, except as otherwise provided by law |
| Rules for recovery companies | Hawaii's unclaimed property law limits agreements to locate or recover property that is presumed abandoned. Such an agreement is void if it is signed between the date the property was presumed abandoned and 24 months after it was paid or delivered to the state administrator. To be enforceable an agreement must be in writing, describe the property and the services, be signed by the apparent owner, and state the value of the property before and after the fee. Compensation above 25 percent of the total value of the property is unenforceable except by the owner. An owner's agreement with an attorney to file a claim is also limited to 25 percent unless a court approves more for a circuit court action. Haw. Rev. Stat. § 523A-25(a), (b), (d), (f) Show the source textAn agreement covered by this section that provides for compensation that exceeds twenty-five per cent of the total value of the property shall be unenforceable except by the owner. |
How surplus funds arise in Hawaii
When a home in Hawaii is sold at a foreclosure sale or a tax sale for more than the debt and the costs of the sale, the money left over is surplus funds, also called excess proceeds or overage. It does not belong to the lender or to the buyer. Liens recorded behind the foreclosed debt are paid first, and what remains belongs to the former owner or to the owner's heirs. Read surplus funds explained for the general rules and liens and competing claims for the order of payment.
How a claim moves in Hawaii
We confirm the sale figures in the public record, identify which office in Hawaii is holding the money, and prepare and file the claim the way that office requires, advancing the costs. Because we bring the whole record with us, the claim does not stall on a missing document, a competing name or a missed date. See how to qualify for what we handle and what you provide. Notices about surplus are usually mailed to the last address on record, which is often the home that was sold, so do not wait for a letter. In Hawaii that program is the State of Hawaii Unclaimed Property Program, Department of Budget and Finance.
If the owner has died
The right to the money belongs to the estate. Depending on the size of the estate, Hawaii law may allow a simplified procedure, or a probate court may need to appoint a personal representative. See estate and heir recovery and probate assistance.
Working with a recovery company in Hawaii
Hawaii regulates this kind of service. Hawaii's unclaimed property law limits agreements to locate or recover property that is presumed abandoned. Such an agreement is void if it is signed between the date the property was presumed abandoned and 24 months after it was paid or delivered to the state administrator. To be enforceable an agreement must be in writing, describe the property and the services, be signed by the apparent owner, and state the value of the property before and after the fee. Compensation above 25 percent of the total value of the property is unenforceable except by the owner. An owner's agreement with an attorney to file a claim is also limited to 25 percent unless a court approves more for a circuit court action. (Haw. Rev. Stat. § 523A-25(a), (b), (d), (f))
Any agreement you sign, with us or with anyone else, has to follow that rule.
No out-of-pocket expense. Our only payment is a completion fee taken from the surplus once it is recovered. Where your state requires a licensed attorney for a court or probate filing, a licensed attorney handles it, and you still pay nothing out of pocket. Before you sign with anyone, read what a surplus funds scam looks like.
Questions about surplus funds in Hawaii
Enough to prove who you are and how you held the property: identification, the deeds, any notice you received, and, if the owner has died, the estate paperwork. We do the rest for Hawaii, from locating the funds to filing the claim.
In a power of sale (non-court) foreclosure, the foreclosing lender distributes the sale proceeds. Liens and the foreclosure costs are paid in order of priority, and any surplus left after all valid lien creditors are paid goes to the mortgagor (the borrower). In a foreclosure by court action, creditors are paid by lien priority and the remainder, if any, is paid over to the owner of the mortgaged property.
No out-of-pocket expense. We advance the costs and are paid a completion fee from the surplus only after it is recovered. Where a court or probate filing requires a licensed attorney, a licensed attorney handles it.