(a) An owner-occupant of a residential property that is subject to nonjudicial foreclosure under part II may convert the action to a judicial foreclosure provided that:

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Terms Used In Hawaii Revised Statutes 667-53

  • Complaint: A written statement by the plaintiff stating the wrongs allegedly committed by the defendant.
  • 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
  • Foreclosure notice: means notice of default and intention to foreclose prepared pursuant to section 667-22. See Hawaii Revised Statutes 667-1
  • Jurisdiction: (1) The legal authority of a court to hear and decide a case. Concurrent jurisdiction exists when two courts have simultaneous responsibility for the same case. (2) The geographic area over which the court has authority to decide cases.
  • Mortgage: The written agreement pledging property to a creditor as collateral for a loan.
  • Mortgage: means a mortgage, security agreement, or other document under which property is mortgaged, encumbered, pledged, or otherwise rendered subject to a lien for the purpose of securing the payment of money or the performance of an obligation. 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
  • Residential property: means real property that is improved and used for residential purposes. See Hawaii Revised Statutes 667-1
(1) A petition conforming to section residential property; required contents” class=”unlinked-ref” datatype=”S” sessionyear=”2022″ statecd=”HI”>667-54 shall be filed with the circuit court in the circuit where the residential property is located, stating that the owner-occupant of the property elects to convert the nonjudicial foreclosure to a judicial foreclosure proceeding, no later than thirty days after the foreclosure notice is served on the owner-occupant, as required by section 667-22;
(2) Within forty-five days of the filing of the petition, all owner-occupants and mortgagors of an interest in the residential property whose interests are pledged or otherwise encumbered by the mortgage that is being foreclosed and all persons who have signed the promissory note or other instrument evidencing the debt secured by the mortgage that is being foreclosed, including without limitation co-obligors and guarantors, shall file a statement in the circuit court action that they agree to submit themselves to the judicial process and the jurisdiction of the circuit court; provided further that if this condition is not satisfied, the circuit court action may be dismissed with prejudice as to the right of any owner-occupant to convert the action to a judicial proceeding, and the mortgagee may proceed nonjudicially;
(3) Filing a petition pursuant to paragraph (1) shall automatically stay the nonjudicial foreclosure action unless and until the judicial proceeding has been dismissed;
(4) The person filing the petition pursuant to paragraph (1) shall have an affirmative duty to promptly notify the Hawaii attorney who is handling the nonjudicial foreclosure about the filing of the complaint for conversion;
(5) All parties joined in the converted judicial proceeding may assert therein any claims and defenses that they could have asserted had the action originally been commenced as a judicial foreclosure action; and
(6) The fee for filing the petition shall be $250, which shall be deposited into the mortgage foreclosure dispute resolution special fund established under § 667-86.
(b) This section shall not apply to foreclosures of association liens that arise under a declaration filed pursuant to chapter 421J or 514B or any predecessor to chapter 514B.
(c) This section shall not apply to a foreclosure for which the mortgagor has elected to participate in the mortgage foreclosure dispute resolution program pursuant to part V.
(d) The judiciary may create and adopt a form for a conversion petition.

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