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HB1775 • 2026

RELATING TO FORECLOSURES.

RELATING TO FORECLOSURES.

Housing
Active

The official status still shows this bill as active or still awaiting another formal step.

Sponsor
GRANDINETTI, AMATO, BELATTI, EVSLIN, HUSSEY, ILAGAN, IWAMOTO, KAPELA, PERRUSO, POEPOE, TARNAS
Last action
2026-02-05
Official status
The committee(s) on CPC recommend(s) that the measure be deferred.
Effective date
Not listed

Plain English Breakdown

The official source material does not provide specific details on what happens if no subsequent bids are submitted within the extended period.

Rules for Foreclosure Sales

This bill changes the rules for foreclosure sales to extend the period during which eligible bidders can submit a higher bid or notice of intent.

What This Bill Does

  • Specifies that a judicial foreclosure sale is not final until either fifteen days after the initial public sale if no subsequent bids are made, or forty-five days if there are subsequent bids.
  • Requires successful bidders who make a subsequent bid to pay at least ten percent of the highest bid as a nonrefundable downpayment.

Who It Names or Affects

  • People involved in foreclosure sales, including mortgagees and potential buyers.
  • Tenants and prospective homebuyers interested in purchasing foreclosed properties.
  • Nonprofits focused on affordable housing development and preservation.

Terms To Know

Eligible bidder
A person or organization that can submit a subsequent bid after the original public sale of a foreclosed property, including tenants currently living in the property, people planning to live there, certain nonprofits, community land trusts, and government agencies.
Subsequent bid
An additional bid made by an eligible bidder after the initial public sale, which must be equal to or higher than the highest previous bid.

Limits and Unknowns

  • The bill does not specify what happens if no subsequent bids are submitted within the extended period.
  • It is unclear how this change will affect existing foreclosure processes that have already begun before the bill's effective date.

Bill History

  1. 2026-02-05 H

    The committee(s) on CPC recommend(s) that the measure be deferred.

  2. 2026-02-03 H

    Bill scheduled to be heard by CPC on Thursday, 02-05-26 2:00PM in House conference room 329 VIA VIDEOCONFERENCE.

  3. 2026-01-26 H

    Referred to CPC, JHA, referral sheet 1

  4. 2026-01-22 H

    Introduced and Pass First Reading.

  5. 2026-01-21 H

    Pending introduction.

Official Summary Text

RELATING TO FORECLOSURES.
Judicial Foreclosures; Eligible Bidders; Subsequent Bids
Specifies that a judicial foreclosure sale is not final until the earliest of either fifteen days after the public sale, unless an eligible bidder submits a subsequent bid or written notice of intent to submit a subsequent bid, or forty-five days after the public sale. Requires subsequent successful bidders to make a downpayment.

Current Bill Text

Read the full stored bill text 
HB1775

HOUSE OF REPRESENTATIVES

H.B. NO.

1775

THIRTY-THIRD LEGISLATURE, 2026

STATE OF HAWAII

A BILL FOR AN ACT

RELATING
TO FORECLOSURES
.

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

����
SECTION 1.
�
Chapter 667, Hawaii Revised Statutes, is
amended by adding a new section to part IA to be appropriately designated and
to read as follows:

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"
�667-
�
Eligible
bidder; subsequent bid.
�
(a)
�

Notwithstanding any other law to the contrary, the public sale of a
mortgaged property under a foreclosure by action process pursuant to this part
shall not be deemed final until the earliest of the following:

����
(1)
�
Fifteen days
after the public sale, unless at least one or more eligible bidders submits a:

���������
(A)
�
Subsequent
bid that is equal to or exceeds the amount of the latest and highest bid of the
successful bidder; or

���������
(B)
�
Nonbinding
written notice of intent to place a subsequent bid.

���������
The bid or written notice of
intent to place a subsequent bid shall be sent to the mortgagee by certified
mail, overnight delivery, or another method that allows for confirmation of the
delivery date and shall be received by the mortgagee no later than fifteen days
after the public sale; or

����
(2)
�
Forty-five days
after the public sale; provided that during the forty-five-day period, an
eligible bidder may submit a subsequent bid in an amount that is equal to or
exceeds the latest and highest bid of the successful bidder.

����
(b)
�
If
an eligible bidder submits a subsequent bid that is equal to or exceeds the
amount of the latest and highest bid of the successful bidder, the eligible
bidder shall be the final successful bidder and make a nonrefundable
downpayment to the foreclosing mortgagee of no less than ten per cent of the
highest successful bid price.

����
(c)
�

For the purposes of this section,
"successful bidder"
means the highest bidder who meets the requirements of the terms and conditions
of the public sale.
"

����
SECTION 2.
�
Section 667-1, Hawaii Revised Statutes, is
amended by adding three new definitions to be appropriately inserted and to
read as follows:

����
"
"Eligible bidder" means:

����
(1)
�
An eligible
tenant buyer;

����
(2)
�
A prospective
owner-occupant;

����
(3)
�
A nonprofit
corporation whose primary activity is the development and preservation of
affordable housing;

����
(4)
�
A community
land trust; or

����
(5)
�
A state or
county government department or agency.

����
"Eligible tenant buyer" means a
natural person who, at the time of a public sale, is:

����
(1)
�
Occupying the
mortgaged property as the person's primary residence;

����
(2)
�
Occupying the
mortgaged property under a rental or lease agreement; and

����
(3)
�
Not the
mortgagor or the child, spouse, or parent of the mortgagor.

����
"Prospective owner-occupant" means
a natural person who presents to the mortgagee an affidavit stating that the
person:

����
(1)
�
Will occupy the
mortgaged property as the person's primary residence within sixty days of the
deed being recorded;

����
(2)
�
Will maintain
the person's occupancy in the mortgaged property for at least one year;

����
(3)
�
Is not the
mortgagor or the child, spouse, or parent of the mortgagor; and

����
(4)
�
Is not acting
as the agent of any other person or entity in purchasing the mortgaged
property.
"

����
SECTION
3
.
�
Section 667-29.5,
Hawaii Revised Statutes, is amended to read as follows:

����
"
667-29.5
�
Eligible bidder; subsequent bid.
�
(a)
�

Notwithstanding any other law to the contrary, the public sale of a
mortgaged property under a power of sale foreclosure process pursuant to this
part shall not be deemed final until the earliest of the following:

����
(1)
�
Fifteen days after
the public sale, unless at least one or more eligible bidders submits a:

���������
(A)
�
Subsequent bid
that is equal to or exceeds the amount of the latest and highest bid of the
successful bidder under section 667-29; or

���������
(B)
�
Nonbinding written
notice of intent to place a subsequent bid.

���������
The bid or written notice of
intent to place a subsequent bid shall be sent to the mortgagee by certified
mail, overnight delivery, or another method that allows for confirmation of the
delivery date and shall be received by the mortgagee no later than fifteen days
after the public sale; or

����
(2)
�
Forty-five days
after the public sale; provided that during the forty-five-day period, an
eligible bidder may submit a subsequent bid in an amount that is equal to or
exceeds the latest and highest bid of the successful bidder under section
667-29.

����
(b)
�

If an eligible bidder submits a subsequent bid that is equal to or
exceeds the amount of the latest and highest bid of the successful bidder under
section 667-29, the eligible bidder shall be the final successful bidder and
make the nonrefundable downpayment required under section 667-29.

����
[
(c)
�
For the purposes of this section:

����
"Eligible bidder"
means:

����
(1)
�
An eligible
tenant buyer;

����
(2)
�
A prospective
owner-occupant;

����
(3)
�
A nonprofit
corporation whose primary activity is the development and preservation of
affordable housing;

����
(4)
�
A community
land trust; or

����
(5)
�
A state or
county government department or agency.

����
"Eligible tenant buyer"
means a natural person who, at the time of a public sale, is:

����
(1)
�
Occupying the
mortgaged property as the person's primary residence;

����
(2)
�
Occupying the
mortgaged property under a rental or lease agreement; and

����
(3)
�
Not the
mortgagor or the child, spouse, or parent of the mortgagor.

����
"Prospective
owner-occupant" means a natural person who presents to the mortgagee an
affidavit stating that the person:

����
(1)
�
Will occupy the
mortgaged property as the person's primary residence within sixty days of the
deed being recorded;

����
(2)
�
Will maintain
the person's occupancy in the mortgaged property for at least one year;

����
(3)
�
Is not the
mortgagor or the child, spouse, or parent of the mortgagor; and

����
(4)
�
Is not acting
as the agent of any other person or entity in purchasing the mortgaged
property.
]"

����
SECTION 4.
�
This Act does not affect rights and duties
that matured, penalties that were incurred, and proceedings that were begun
before its effective date.

����
SECTION
5.
�
Statutory material to be repealed is
bracketed and stricken.
�
New statutory
material is underscored.

����
SECTION 6.
�
This Act shall take effect upon its approval.

INTRODUCED BY:

_____________________________

Report Title:

Judicial
Foreclosures; Eligible Bidders; Subsequent Bids

Description:

Specifies that a judicial foreclosure sale is not final
until the earliest of either fifteen days after the public sale, unless an
eligible bidder submits a subsequent bid or written notice of intent to submit
a subsequent bid, or forty-five days after the public sale.
�
Requires subsequent successful bidders to
make a downpayment.

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