(a) Upon initiation of a foreclosure action pursuant to part IA or part II by a foreclosing mortgagee, no junior lienholder, except for an association, shall be permitted to initiate or continue a nonjudicial foreclosure until the foreclosure initiated by the foreclosing mortgagee has been concluded by a judgment issued by a court pursuant to section Foreclosure by action” class=”unlinked-ref” datatype=”S” sessionyear=”2022″ statecd=”HI”>667-1.5, the recording of an affidavit after public sale pursuant to section 667-33, or the filing of an agreement under the mortgage foreclosure dispute resolution provisions of section neutral‘s closing report” class=”unlinked-ref” datatype=”S” sessionyear=”2022″ statecd=”HI”>667-81; provided that if pursuant to part IA or part VI:

contract signature

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Terms Used In Hawaii Revised Statutes 667-57

  • Affidavit: A written statement of facts confirmed by the oath of the party making it, before a notary or officer having authority to administer oaths.
  • Dispute resolution: means a facilitated negotiation under part V between a mortgagor and mortgagee for the purpose of reaching an agreement for mortgage loan modification or other agreement in an attempt to avoid foreclosure or to mitigate damages if foreclosure is unavoidable. See Hawaii Revised Statutes 667-1
  • Foreclosure: A legal process in which property that is collateral or security for a loan may be sold to help repay the loan when the loan is in default. Source: OCC
  • Lien: A claim against real or personal property in satisfaction of a debt.
  • Mortgagee: means the current holder of record of the mortgagee's or the lender's interest under the mortgage or the current mortgagee's or lender's duly authorized agent. See Hawaii Revised Statutes 667-1
  • Mortgagee: The person to whom property is mortgaged and who has loaned the money.
  • Neutral: means a person who is a dispute resolution specialist assigned to facilitate the dispute resolution process required by part V. See Hawaii Revised Statutes 667-1
  • Nonjudicial foreclosure: means foreclosure under power of sale. See Hawaii Revised Statutes 667-1
  • Owner-occupant: means a person, at the time that a notice of default and intention to foreclose is served on the mortgagor under the power of sale:

    (1) Who owns an interest in the residential property, and the interest is encumbered by the mortgage being foreclosed; and

    (2) For whom the residential property is and has been the person's primary residence for a continuous period of not less than two hundred days immediately preceding the date on which the notice is served. See Hawaii Revised Statutes 667-1

  • Property: means property (real, personal, or mixed), an interest in property (including fee simple, leasehold, life estate, reversionary interest, and any other estate under applicable law), or other interests that can be subject to the lien of a mortgage. See Hawaii Revised Statutes 667-1
(1) An association forecloses on a unit occupied by one or more mortgagors for whom the unit is and has been the person’s primary residence for a continuous period of not less than two hundred days immediately preceding the date on which the notice is served; and
(2) The mortgagee subsequently forecloses its lien on the same property,

those mortgagors shall be deemed to be owner-occupants, as defined in § 667-1, for the purpose of section owner-occupant prohibited” class=”unlinked-ref” datatype=”S” sessionyear=”2022″ statecd=”HI”>667-38 and shall retain their right to require the foreclosing mortgagee to participate in the procedures established under part V, notwithstanding the association’s foreclosure.

(b) Upon initiation of a foreclosure action pursuant to part II by a foreclosing mortgagee, no junior lienholder, except for an association, shall be permitted to initiate or continue a nonjudicial foreclosure during the pendency of a stay pursuant to § 667-83; provided that a junior lienholder may initiate or continue with a nonjudicial foreclosure if the junior lien foreclosure was initiated before the foreclosure action by the foreclosing mortgagee and if pursuant to part IA or part VI:

(1) An association forecloses on a unit occupied by one or more mortgagors for whom the unit is and has been the person’s primary residence for a continuous period of not less than two hundred days immediately preceding the date on which the notice is served; and
(2) The mortgagee subsequently forecloses its lien on the same property,

those mortgagors shall be deemed to be owner-occupants, as defined in § 667-1, for the purpose of section 667-38 and shall retain their right to require the foreclosing mortgagee to participate in the procedures established under part V, notwithstanding the association’s foreclosure.

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