State Foreclosure Law Library

hawaii

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Hawaii — Tax & Mortgage Foreclosure

Legal information, not legal advice. Verify against the cited primary sources before acting. Last verified: 2026-06-01.

Structural note (read first). Hawaii is unusual. Real-property taxation was transferred from the State to the four counties effective July 1, 1981, and the old State real-property-tax statute, HRS Chapter 246 (“Real Property Tax Law”), was REPEALED by L 2016, c 52, §7 (confirmed by the official chapter PDF, which now reads only “REPEALED. L 2016, c 52, §7”). The operative tax-sale law therefore lives in county ordinances that re-enact the old HRS 246 language almost verbatim — e.g., the Revised Ordinances of Honolulu (ROH) Chapter 8, Article 5 (§ 8-5.2 foreclosure without suit; § 8-5.6 tax deed/redemption; § 8-5.9 disposition of surplus moneys). A parallel State framework for tax-lien foreclosure of State-administered taxes survives at HRS Chapter 231, §§ 231-62 to 231-67 (231-63 foreclosure without suit; 231-67 tax deed/redemption), whose text mirrors the repealed 246 sections. Throughout this page, the substantive rule (1-year redemption, 12% interest, surplus to the former owner) is cited to these surviving/mirrored sources and to the counties’ own published procedures.

0. Identity & Classification

  • Recording unit: county (count: 4 — Honolulu (City & County), Hawaiʻi, Maui, Kauaʻi; Kalawao is administered by Maui/State). Tax administration is county-level since 1981.
  • Tax sale type: tax deed (redeemable deed). The county sells the property outright at public auction to satisfy the lien; the former owner then has a statutory post-sale redemption window. Hawaii is not a lien-certificate state. Maui County Tax Sale FAQ
  • Tax foreclosure process: administrative / non-judicial — “foreclosure without suit” by the county tax director (ROH § 8-5.2; cf. repealed HRS 246-56 / mirrored HRS 231-63).
  • Mortgage foreclosure process: both judicial (HRS 667 Part IA, § 667-1.5) and non-judicial / power-of-sale (HRS 667 Part II, §§ 667-21 to 667-42). HRS Ch. 667 (2017 chapter PDF)
  • Selling authority: county finance director / tax collector (real-property tax sale); commissioner (judicial mortgage foreclosure) or mortgagee/trustee (non-judicial power-of-sale).
  • Statutory home: Tax sale — county ordinances (Honolulu ROH Ch. 8, Art. 5), with surviving State analog HRS Ch. 231 §§ 231-62 to 231-67. Mortgage — HRS Ch. 667. — HRS 231-67 (Justia 2024)
  • Tyler v. Hennepin compliance: compliant — see tyler-v-hennepin-county. Hawaii law has long required the foreclosing officer to return the surplus after the tax debt and costs to the person entitled (repealed HRS 246-63 / ROH § 8-5.9 “Disposition of surplus moneys”; mortgage analog HRS 667-31(b)). The State does not keep the equity, so Hawaii’s scheme does not embody the surplus-retention defect condemned in Tyler.

1. Tax Sale Mechanics

  • What is sold: the fee (deed) to the delinquent parcel, subject to the one-year redemption right. Maui FAQ
  • Bidding method: highest-bid (premium) cash auction. “Sold by the director at public auction to the highest bidder, for cash, to satisfy the lien, together with all interest, penalties, costs, and expenses” (ROH § 8-5.2; repealed HRS 246-56). Search-confirmed text: WebSearch quote of ROH 8-5.2 / HRS 246-56
  • Interest or penalty (redemption): 12% per year on the redemption amount (repealed HRS 246-60; mirrored HRS 231-67; confirmed by the county FAQs). Maui FAQ
  • Minimum bid composition (“upset price”): delinquent real-property taxes + accrued penalty and interest to the auction date + all costs of sale. Maui FAQ
  • Sale frequency / typical month: as needed by each county (a parcel must be sold once a tax lien has existed for three years — ROH § 8-5.2). No fixed statewide calendar; counties schedule periodically. County-level fact.
  • Venue: in-person public auction “at any public place proper for sales on execution”; counties publish location in the foreclosure notice. WebSearch quote of ROH 8-5.2
  • Platform vendors: none statewide (in-person). County-level fact.
  • Registration & deposit: active bidders must register and bring full payment in cashier’s checks drawn on U.S. banks (no cash/personal checks/cards); payment due at the sale. Maui FAQ
  • Subsequent taxes (“subs”): not applicable — Hawaii sells a deed, not a certificate, so there is no certificate-holder “sub” mechanic. The purchaser takes subject only to the redemption right.

2. Right of Redemption → see right-of-redemption

  • Pre-sale right: the owner may stop the sale at any time before it occurs by paying the delinquent taxes, penalties, interest, and costs (lien is discharged on payment). Maui FAQ
  • Post-sale period: one (1) year — runs from the date of sale, or, if the tax deed is not recorded within 60 days after the sale, from the date the deed is recorded (whichever is later). Repealed HRS 246-60; mirrored HRS 231-67. HRS 231-67 (Justia 2024) · Maui FAQ
  • Who may redeem: the taxpayer / former owner (and, by general practice, persons holding an interest derived from the owner). The statute frames the right as the “taxpayer” redeeming. HRS 231-67 (Justia 2024)
  • Redemption amount formula: amount paid by the purchaser at the sale + all costs and expenses the purchaser was required to pay (including the deed recording fee) + 12% per year interest on that amount. (Repealed HRS 246-60 / HRS 231-67.) HRS 231-67 (Justia 2024)
  • Premium to certificate holder: N/A (deed state, no certificate).
  • Procedure: redemption is paid directly to the purchaser, not the county — “The County is not involved in the redemption process.” Maui FAQ
  • Extinguishment: the right expires at the end of the one-year window; the tax deed then becomes absolute and (per repealed HRS 246-62 / its ordinance analog) is prima-facie evidence of good title.
  • Special tolling: see scra-protections, bankruptcy-automatic-stay. Statute-specific tolling for minors/incompetents is not confirmed for the current county ordinances — see module 11.

3. Surplus / Excess Proceeds → see surplus-funds, third-party-recovery-rules

  • Belongs to: priority waterfall, then the former owner. The repealed-but- re-enacted “Disposition of surplus moneys” provision (HRS 246-63 / ROH § 8-5.9) directs the officer to pay, from the surplus, all taxes (with interest and penalties) of every nature, and the cost of any record search needed to identify who is entitled to the balance. WebSearch quote of HRS 246-63
  • Claim waterfall: (1) delinquent taxes, penalties, interest; (2) the officer’s costs and expenses of sale and record search; (3) other lienholders of record; (4) the former owner / person entitled to the balance. WebSearch quote of HRS 246-63
  • Filing venue: with the county finance department / tax collector that conducted the sale; if the officer is in doubt as to who is entitled, the officer may refuse to distribute and any claimant may sue the officer in the Circuit Court of the circuit where the property is located. WebSearch quote of HRS 246-63
  • Claim deadline: no fixed statutory deadline in the surplus provision itself; unclaimed surplus held by a county becomes abandoned property that is ultimately reportable to the State Unclaimed Property program (HRS Ch. 523A). Exact county holding period before remittance is a county-level fact — see module 11.
  • Escheat: unclaimed surplus is not permanently forfeited to the State — it is reported/remitted to the State unclaimed-property administrator (Dept. of Budget & Finance) and remains reclaimable by the owner indefinitely under HRS Ch. 523A. Hawaii Unclaimed Property Program
  • Documentation required: proof of identity and ownership/interest at the time of sale; the officer may run a record search to confirm entitlement (HRS 246-63 / ROH § 8-5.9). Precise county forms are a county-level fact.
  • Third-party recovery (surplus-recovery agents):
    • fee_cap_pct: 25% — but only once funds reach the State unclaimed- property stage: HRS 523A-25 makes a locate/recover agreement unenforceable to the extent it exceeds 25% of the property’s total value (enforceable only by the owner above that). There is no tax-surplus-specific fee cap governing the window before remittance to the State. See module 11. HRS 523A-25 (FindLaw)
    • licensing_required: no surplus-recovery-specific license confirmed.
    • assignment_of_claim_allowed: not confirmed for tax surplus — see module 11.
    • cooling_off_period: under HRS 523A-25 a locate agreement is void if entered into during the period from when the property is presumed abandoned until 24 months after it is delivered to the State administrator. HRS 523A-25 (FindLaw)
    • contract_disclosure_rules: HRS 523A-25 — agreement must be in writing, signed by the apparent owner, clearly describe the property and services, and state the value before and after the fee. HRS 523A-25 (FindLaw)
    • prohibited_practices: agreements outside the written/disclosure form, or entered during the void window, are unenforceable (HRS 523A-25).
    • citation: HRS 523A-25 (unclaimed-property locators); HRS 246-63 / ROH 8-5.9 (county-stage surplus distribution).
  • Notice to former owner required? Yes — pre-sale notice is mailed to the owner’s last known address and posted/published (ROH § 8-5.2; see module 6). The surplus statute additionally funds a record search to find who is entitled.

4. Mortgage Foreclosure

  • Process: both.
    • Judicial — circuit court assesses the amount due and orders foreclosure; a court-appointed commissioner sells; the court confirms the sale. HRS § 667-1.5. HRS 667 PDF
    • Non-judicial (power of sale) — HRS Part II, §§ 667-21 to 667-42 (the modern process enacted/overhauled by Act 48 (2011) and Act 182 (2012); old § 667-5 was repealed by L 2012, c 182, §50). HRS 667 PDF
  • Timeline: non-judicial requires a recorded notice of default and intention to foreclose (§ 667-22) and statutory notice/publication before the public sale; the successful bidder makes a ≥10% non-refundable downpayment and must close within 45 days (§§ 667-29, 667-30). Exact day-counts are flagged — see module 11.
  • Reinstatement / cure right: yes — the default may be cured up to three business days before the public sale by paying the full accelerated arrears plus the foreclosing mortgagee’s fees and costs; “There is no right to cure the default or any right of redemption after that time.” HRS § 667-28(d). HRS 667 PDF
  • Redemption after sale: none — Hawaii has no statutory post-sale redemption for mortgage foreclosures (§ 667-28(d), above).
  • Deficiency judgment: allowed in judicial foreclosure (court may enter a deficiency on confirmation). In non-judicial foreclosure of residential property, a deficiency judgment against an owner-occupant is PROHIBITED unless the debt is secured by other collateral. HRS § 667-38. HRS 667 PDF
  • Surplus distribution: liens paid in order of priority (not pro rata); “Any remaining surplus after payment in full of all valid lien creditors shall be distributed to the mortgagor.” HRS § 667-31(b); see also § 667-10 (remainder “paid over to the owner of the mortgaged property”) and § 667-3. HRS 667 PDF
  • Sale officer: commissioner (judicial) or foreclosing mortgagee / trustee (non-judicial power of sale).

5. Sale Procedure Playbooks

  • Treasurer / tax-collector (“foreclosure without suit”) sale → see treasurer-sale:
    1. Tax lien arises; once any lien has existed three years, the county must sell (ROH § 8-5.2).
    2. County mails notice to the owner’s last known address (≥45 days before sale, per repealed HRS 246-56 text) and posts in ≥3 conspicuous places (one on the land if improved).
    3. County publishes the foreclosure-sale notice once a week for 4 successive weeks in a newspaper of general circulation before the sale (ROH § 8-5.2). WebSearch quote of ROH 8-5.2
    4. Public auction to the highest cash bidder at the upset price (taxes + penalty + interest + costs). Maui FAQ
    5. Tax deed executed and recorded within 60 days of sale (repealed HRS 246-60).
    6. One-year redemption runs (module 2); officer distributes surplus under ROH § 8-5.9 / HRS 246-63 (module 3).
  • Sheriff / commissioner (mortgage) sale → see sheriff-sale: judicial sale by court-appointed commissioner, subject to court confirmation; non-judicial power-of-sale auction by the mortgagee under HRS 667 Part II.
  • Notice requirements: tax sale — 4 weeks’ publication + mailing + posting (ROH § 8-5.2 / repealed HRS 246-56, -58). Mortgage — recorded notice of default + statutory publication (HRS § 667-22 et seq.).
  • Upset bid / confirmation: judicial mortgage sales require court confirmation; tax sales and non-judicial mortgage sales have no upset-bid re-opening mechanism (the high cash bid governs, subject to redemption for tax sales).
  • Payment terms: tax sale — full cashier’s-check payment at the auction. Mortgage non-judicial — ≥10% down, close within 45 days (§ 667-29/30). Maui FAQ
  • Deed issued: tax deed (quitclaim-grade, “as is,” no warranty of title), recorded within 60 days; mortgage commissioner’s deed after confirmation. Maui FAQ

6. Due Process & Notice → see due-process-notice

  • Standard: notice “reasonably calculated” to reach interested parties (mullane-v-central-hanover); mailed (actual) notice to owners and recorded lienholders (mennonite-v-adams); additional steps when mail is returned (jones-v-flowers). Hawaii’s tax-sale statute requires both mailed notice to the owner’s last known address and published + posted notice.
  • Required attempts: (1) mail to last known address; (2) publish weekly for 4 weeks; (3) post in ≥3 conspicuous places, one on the land if improved (repealed HRS 246-56 / ROH § 8-5.2). WebSearch quote of ROH 8-5.2
  • Consequence of defective notice: in mortgage foreclosure the Hawaiʻi Supreme Court treats a non-compliant non-judicial sale as void / voidable at the mortgagor’s election (subject to the innocent-purchaser-for-value rule) — see mount-v-apao, santiago-v-tanaka. By analogy, a tax sale lacking statutory notice is challengeable (voidable), though a clean Hawaii tax-sale-notice case is flagged in module 11.
  • Leading cases: mullane-v-central-hanover, mennonite-v-adams, jones-v-flowers, tyler-v-hennepin-county, mount-v-apao, santiago-v-tanaka.

7. Title & Marketability

  • Deed warranty level: none — counties convey “as is” with no warranty of title; buyers are told to consult their own attorney about liens/title. Maui FAQ
  • Marketable immediately? No — title is clouded during the one-year redemption window and by the absence of warranty.
  • Quiet title required? Commonly yes — a quiet-title action (and/or Land Court proceeding for registered/Torrens land) is the standard way to clear the tax deed after redemption lapses. (Hawaii has a dual recording system: regular system + Land Court/Torrens registered land.)
  • SOL to challenge deed: not confirmed for the current county ordinances — the repealed HRS 246-62 made the tax deed prima-facie evidence of regularity; precise limitations period flagged in module 11.
  • Title insurance availability: generally unavailable until the redemption period closes and (often) a quiet-title decree issues. Practitioner-level / flagged.
  • Common defects: outstanding redemption right; defective/returned notice; Land Court (registered land) parcels requiring separate clearing; junior liens not properly noticed; heirs/kuleana and Native Hawaiian land interests.

8. Case Law (real, verified)

CaseYearTopicHolding (plain English)Source
mount-v-apao (139 Haw. 167, 384 P.3d 1268)2016sale_procedure, due_processA lender’s failure to disclose the payoff/cure amount on request rendered the non-judicial foreclosure voidable at the borrower’s election; if the buyers were innocent purchasers for value, the remedy is damages, not undoing the sale.CourtListener · HI Judiciary PDF
santiago-v-tanaka (137 Haw. 137, 366 P.3d 612)2016sale_procedure, due_processA wrongful non-judicial foreclosure is invalid and voidable at the mortgagor’s election (regaining title), except where an innocent purchaser for value has taken title, in which case the remedy is out-of-pocket damages.Justia
tyler-v-hennepin-county (598 U.S. 631)2023surplusKeeping a former owner’s surplus equity beyond the tax debt is an unconstitutional taking. Hawaii already returns surplus to the owner (HRS 246-63/ROH 8-5.9), so its scheme is consistent with Tyler.HI Ch.246-63 text
mennonite-v-adams (462 U.S. 791)1983due_processA mortgagee of record is entitled to actual (mailed) notice before a tax sale; publication alone is insufficient.Maui FAQ (notice practice)
jones-v-flowers (547 U.S. 220)2006due_process, redemptionWhen mailed tax-sale notice is returned undelivered, the government must take additional reasonable steps to notify the owner.HI Ch.246-56 notice text

Topic-tag coverage: surplus (Tyler), due_process (Mennonite, Jones, Mount, Santiago), sale_procedure (Mount, Santiago), redemption (Jones, plus the statutory one-year right). A Hawaii-specific tax-deed redemption/notice case is still sought — see module 11 (honest gap, not fabricated).

9. Edge Cases (state-specific notes)

  • bankruptcy-automatic-stay — a Chapter 7/13 filing stays a tax or mortgage sale; the redemption clock is tolled per 11 U.S.C. §§ 362, 108(b). State-specific interaction flagged.
  • federal-tax-lien-redemption — the IRS holds a 120-day post-sale redemption right under 26 U.S.C. § 7425 when a federal tax lien is junior; applies in Hawaii.
  • heirs-property — Hawaii kuleana lands and Native Hawaiian/ahupuaʻa interests, and undivided heirs’ interests, complicate notice and title; quiet-title actions involving kuleana receive special statutory treatment. Flagged for a precise citation.
  • scra-protections — Servicemembers Civil Relief Act protections (50 U.S.C. § 3953) apply to foreclosures of obligations incurred before active duty.
  • hoa-super-priority — condominium/planned-community association liens have special non-judicial-foreclosure handling under HRS 667 Part II and §§ 667-5.5, 667-21.5; association deficiency rights differ. Flagged for detail.
  • land-court-registered-land — Hawaii’s Torrens / Land Court system means tax/foreclosure deeds on registered land must be cleared through Land Court procedures (HRS Ch. 501). Distinctive to Hawaii.
  • void-vs-voidable — Hawaii treats wrongful non-judicial foreclosures as voidable subject to the innocent-purchaser-for-value rule (mount-v-apao, santiago-v-tanaka).

10. Operations

11. Meta

Legal information, not legal advice. This page summarizes statutes, ordinances, and cases as of 2026-06-01 and may be incomplete or out of date. Verify every cited primary source and consult a licensed Hawaiʻi attorney before acting.

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