Have you been thinking of procuring a mortgage loan in Hawaii? The important legal and other aspects of mortgaging in the 'Aloha State' (Hawaii) are discussed here to help you and other people like you who are interested in such transactions in the state.

Laws on mortgages in Hawaii have been codified in Chapter 478, Hawaii Revised Statutes.

• The commercial banks based in Hawaii report comparatively higher exposures to mortgage backed securities and variable rate mortgage products.
  
  
• The growth rate of home price in the state ranks third in the nation. The appreciation of home price surpassed personal income gains thereby pressurizing affordability.
  
  
• In the mortgage process subsequent to full payoff, mortgagor can by making a written request to mortgagee and mailed by certified mail, demand that a release and satisfaction of the mortgage is to be provided to the mortgagor. The mortgagee has 60 days to comply with this request. This is the 'Demand to satisfy'.
  
  
• The 'Recording Satisfaction' requires that mortgagee of any real property provides to the mortgagor a release of mortgage on full satisfaction of the mortgage and discharge of any secured debt.
  
  
• After court proceedings are carried out, in case the court finds proper and reasonable cause then the mortgagee can be penalized by being liable for triple damages, reasonable attorney fees and costs.
  
  
• Both judicial and non-judicial foreclosure processes are available in Hawaii.
  In the judicial process a lawsuit is filed to obtain a court order to foreclose and is used when there is no ''power of sale'' clause in the mortgage (or deed of trust). Normally, upon declaration of a foreclosure by court, the property concerned is auctioned off to the highest bidder.
  The non-judicial process is carried out when there is a 'power of sale' clause in the mortgage. This pre-authorization 'power of sale' clause is for the sale of property in order to pay off the balance on a loan in the event of default. When a power of sale exists in a mortgage, this power given to the lender for selling the property can be either executed by the lender or by the trustee i.e. the representative of the lender. The particular regulations for this type of foreclosure process are outlined in the ''Power of Sale Foreclosure Guidelines''.
  
  
• Deficiency judgments are allowed in Hawaii. However, no rights of redemption are available here.