HB 1992: Judiciary; Mortgage Foreclosures; Online Sale Public Sale; Public Notice; Appropriation

A BILL FOR AN ACT

relating to foreclosures.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

     SECTION 1.  Section 667-25, Hawaii Revised Statutes, is amended by amending subsection (b) to read as follows:

     "(b)  The public sale of the mortgaged property shall be held [only in]:

     (1)  In the county where the mortgaged property is located; provided that the public sale shall be held only on grounds or at facilities under the administration of the State, as follows:

    [(1)] (A)  At the state capitol, for a public sale of mortgaged property located in the city and county of Honolulu;

    [(2)] (B)  At a state facility in Hilo, for a public sale of mortgaged property located in the districts of Hamakua, north Hilo, south Hilo, or Puna;

    [(3)] (C)  At a state facility in Kailua-Kona, for a public sale of mortgaged property located in the districts of north Kohala, south Kohala, north Kona, south Kona, or Kau;

    [(4)] (D)  At a state facility in the county seat of Maui, for a public sale of mortgaged property located in the county of Maui; and

    [(5)] (E)  At a state facility in the county seat of Kauai, for a public sale of mortgaged property located in the county of Kauai;

          as designated by the department of accounting and general services; provided further that no public sale shall be held on grounds or at facilities under the administration of the judiciary[.]; or

     (2)  On a state website to be developed and maintained by the judiciary.

The public sale shall be held during business hours on a business day."

     SECTION 2.  Section 667-27, Hawaii Revised Statutes, is amended by amending subsection (a) to read as follows:

     "(a)  The foreclosing mortgagee shall prepare the public notice of the public sale.  The public notice shall state:

     (1)  The date, time, and place of the public sale[;] or, if the public sale is to be held on a state website pursuant to section 667-25(b)(2), the date, time, and website address of the public sale;

     (2)  The unpaid balance of the moneys owed to the mortgagee under the mortgage agreement;

     (3)  A description of the mortgaged property, including the address and the tax map key number of the mortgaged property;

     (4)  The name of the mortgagor and the borrower;

     (5)  The name of the foreclosing mortgagee;

     (6)  The name of any prior or junior creditors having a recorded lien on the mortgaged property before the recordation of the notice of default and intention to foreclose under section 667-23;

     (7)  The name, the address in the State, and the telephone number in the State of the person in the State conducting the public sale; and

     (8)  The terms and conditions of the public sale."

     SECTION 3.  Section 667-95, Hawaii Revised Statutes, is amended by amending subsection (b) to read as follows:

     "(b)  The public sale of the unit shall be held [only in]:

     (1)  In the county where the unit is located; provided that the public sale shall be held only on grounds or at facilities under the administration of the State, as follows:

    [(1)] (A)  At the state capitol, for a public sale of a unit located in the city and county of Honolulu;

    [(2)] (B)  At a state facility in Hilo, for a public sale of a unit located in the districts of Hamakua, north Hilo, south Hilo, or Puna;

    [(3)] (C)  At a state facility in Kailua-Kona, for a public sale of a unit located in the districts of north Kohala, south Kohala, north Kona, south Kona, or Kau;

    [(4)] (D)  At a state facility in the county seat of Maui, for a public sale of a unit located in the county of Maui; and

    [(5)] (E)  At a state facility in the county seat of Kauai, for a public sale of a unit located in the county of Kauai;

          as designated by the department of accounting and general services; provided further that no public sale shall be held on grounds or at facilities under the administration of the judiciary[.]; or

     (2)  On a state website to be developed and maintained by the judiciary.

The public sale shall be held during business hours on a business day."

     SECTION 4.  Section 667-96, Hawaii Revised Statutes, is amended by amending subsection (a) to read as follows:

     "(a)  The association shall prepare the public notice of the public sale.  The public notice shall state:

     (1)  The date, time, and place of the public sale[;] or, if the public sale is to be held on a state website pursuant to section 667-95(b)(2), the date, time, and website address of the public sale;

     (2)  The unpaid balance of the moneys owed to the association;

     (3)  A description of the unit, including the address and the tax map key number of the unit;

     (4)  The name of the unit owner;

     (5)  The name of the association;

     (6)  The name of any prior or junior creditors having a recorded lien on the unit before the recordation of the notice of default and intention to foreclose under section 667-93;

     (7)  The name, the address in the State, and the telephone number in the State of the person in the State conducting the public sale; and

     (8)  The terms and conditions of the public sale."

     SECTION 5.  There is appropriated out of the general revenues of the State of Hawaii the sum of $           or so much thereof as may be necessary for fiscal year 2026-2027 for the judiciary to develop and maintain a website to host the public sale of mortgaged properties pursuant to section 667-25(b)(2), Hawaii Revised Statutes, and the public sale of units pursuant to section 667-95(b)(2), Hawaii Revised Statutes.

     The sum appropriated shall be expended by the judiciary for the purposes of this Act.

     SECTION 6.  Statutory material to be repealed is bracketed and stricken.  New statutory material is underscored.

     SECTION 7.  This Act shall take effect on July 1, 2026.

Report Title:

Judiciary; Mortgage Foreclosures; Online Sale Public Sale; Public Notice; Appropriation

Description:

Authorizes the public sale of a foreclosed mortgaged property or unit on a state website to be developed and maintained by the Judiciary.  Requires the public notice of the public sale of the mortgaged property or unit to include the date, time, and website address of the sale if the sale is to be held on a state website.  Appropriates funds.

The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.