Hawaii Real Estate State Practice Exam

In Hawaii, the type of foreclosure that does not come with a statutory redemption period is associated with mortgages. When a property is foreclosed upon due to a mortgage default, the legal process does not provide the borrower with the option to redeem the property after the sale has taken place. This lack of a redemption period means that once the property is auctioned off, the former owner cannot reclaim it by paying off the amount owed.

In contrast, other forms of foreclosure, such as tax foreclosures and those related to judgment liens, may allow for a redemption period, providing the former owner an opportunity to reclaim their property by paying off the necessary debts within a designated timeframe. Understanding this distinction is important for administrators and participants in real estate transactions within Hawaii, as it affects property rights and obligations after a foreclosure event.