HB467 • 2026

RELATING TO FORECLOSURES.

Housing

Active

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

Sponsor: GRANDINETTI, BELATTI, EVSLIN, IWAMOTO, KUSCH, MARTEN, PERRUSO, POEPOE, TODD, Tam
Last action: 2025-12-08
Official status: Carried over to 2026 Regular Session.
Effective date: Not listed

Plain English Breakdown

The bill summary does not provide specific details about how the effective date of July 1, 3000, will be handled in practice.

Rules for Selling Foreclosed Homes

This bill stops sellers from grouping foreclosed homes together at public sales, requiring each home to be sold separately.

What This Bill Does

Prohibits sellers of foreclosed homes from bundling properties at a public sale and requires each foreclosed home to be sold individually.

Who It Names or Affects

People who are selling foreclosed homes through public auctions.
Buyers interested in purchasing foreclosed properties, especially those looking for affordable housing options.

Terms To Know

Eligible bidder: A person or organization that can submit a higher bid within forty-five days after the auction, including tenants, prospective owner-occupants, affordable housing nonprofits, community land trusts, and government departments.
Nonjudicial foreclosure: The process of selling foreclosed homes without going through a court system.

Limits and Unknowns

It is unclear how this will affect the overall market for foreclosed properties and their sale prices.
The effective date of July 1, 3000, suggests that there may be further updates or changes before it becomes law.

Amendments

These notes stay tied to the official amendment files and metadata from the legislature.

HD1

Hawaii published version HD1

Plain English: The amendment aims to prevent bundled sales of foreclosed homes and gives certain groups more time to match or beat bids on these properties.

Prohibits mortgagees from bundling multiple foreclosed homes for sale at public auctions, requiring each home to be sold separately.
Allows tenants, families, city and state government, affordable housing nonprofits, and community land trusts a period of forty-five days after the public sale to match or exceed the highest bid on a property.

The amendment text is complex and includes many legal details that are not fully explained in plain English.
Some parts of the original bill sections were truncated, making it difficult to provide a complete summary.

Bill History

2025-12-08 D
Carried over to 2026 Regular Session.
2025-02-13 H
Report adopted; referred to the committee(s) on JHA with none voting aye with reservations; none voting no (0) and Representative(s) Cochran, Kitagawa, Ward excused (3).
2025-02-13 H
Reported from CPC (Stand. Com. Rep. No. 554), recommending referral to JHA.
2025-02-11 H
The committee on CPC recommend that the measure be PASSED, UNAMENDED. The votes were as follows: 10 Ayes: Representative(s) Matayoshi, Chun, Ilagan, Ichiyama, Iwamoto, Kong, Lowen, Marten, Tam, Pierick; Ayes with reservations: none; Noes: none; and Excused: none.
2025-02-07 H
Bill scheduled to be heard by CPC on Tuesday, 02-11-25 2:00PM in House conference room 329 VIA VIDEOCONFERENCE.
2025-02-06 H
Passed Second Reading as amended in HD 1 and referred to the committee(s) on CPC with none voting aye with reservations; none voting no (0) and Representative(s) Ward excused (1).
2025-02-06 H
Reported from HSG (Stand. Com. Rep. No. 212) as amended in HD 1, recommending passage on Second Reading and referral to CPC.
2025-01-31 H
The committee on HSG recommend that the measure be PASSED, WITH AMENDMENTS. The votes were as follows: 7 Ayes: Representative(s) Evslin, Miyake, Grandinetti, Kila, La Chica, Muraoka, Pierick; Ayes with reservations: none; Noes: none; and 2 Excused: Representative(s) Cochran, Kitagawa.
2025-01-28 H
Bill scheduled to be heard by HSG on Friday, 01-31-25 9:15AM in House conference room 430 VIA VIDEOCONFERENCE.
2025-01-21 H
Referred to HSG, CPC, JHA, referral sheet 2
2025-01-21 H
Introduced and Pass First Reading.
2025-01-17 H
Pending introduction.

Official Summary Text

RELATING TO FORECLOSURES.
Foreclosure; Nonjudicial Foreclosure; Bundled Properties; Public Sale; Prohibition; Eligible Bidders; Subsequent Bids
Prohibits sellers of foreclosed homes from bundling properties at a public sale and requires each foreclosed home to be sold separately. Specifies that the sale of a foreclosed property is not final until either fifteen days after the public sale or forty-five days if an eligible bidder submits a subsequent bid or written notice of intent to submit a subsequent bid. Effective 7/1/3000. (HD1)

Current Bill Text

Read the full stored bill text

HB467

HOUSE OF REPRESENTATIVES

H.B. NO.

467

THIRTY-THIRD LEGISLATURE, 2025

STATE OF HAWAII

A BILL FOR AN ACT

relating
to foreclosures
.

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

����
SECTION 1.
�
The legislature finds that natural disasters
and other economic crises can often lead homeowners to default on their
mortgage payments, resulting in a wave of foreclosures.
�
Previous foreclosure crises have resulted in
the replacement of owner-occupied homes with investor-owned rentals, prolonged
vacancies, and unmaintained residential properties.
�
As climate related crises become more intense
and frequent, and as housing cost burdens increase for low- to moderate-income
homeowners, the legislature believes it is necessary to ensure that foreclosed
homes are not lost to second homebuyers or residential investors.

����
Accordingly, the purpose of this Act
is to:

����
(1)
�
Prohibit sellers
of foreclosed homes in a nonjudicial foreclosure from bundling properties at a public
sale for sale to a single buyer and require each foreclosed home to be sold
separately; and

����
(2)
�
Allow
tenants,
families, city and state government, affordable housing nonprofits and
community land trusts forty-five days to match or beat the best public sale bid
to buy the property.

����
SECTION 2.
�
Chapter 667, Hawaii Revised Statutes, is
amended by adding two new sections to be appropriately designated and to read
as follows:

����
"
�667-A
�
Bundled
properties; prohibition.
�
Notwithstanding any other law to the
contrary, for the public sale of mortgaged property under the power of sale foreclosure
or alternate power of sale foreclosure process under this chapter, no mortgagee
shall bundle mortgaged properties for the purpose of public sale and each mortgaged
property shall be bid on separately, unless the deed or mortgage otherwise
requires.

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

Notwithstanding any other law to the contrary, the public sale of mortgaged
property under a power of sale foreclosure or alternate power of sale process under
this chapter 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 667-98; 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 last and highest bid by the successful bidder under section 667-29
or 667-98.

����
(b)
�

If an eligible bidder submits a subsequent bid that is equal to or
exceeds the amount of the last and highest bid by the successful bidder under
section 667-29 or 667-98, the eligible bidder shall be the final successful
bidder
and make the nonrefundable downpayment required under
section 667-29 or 667-98.

����
(c)
�
For 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 their 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 they:

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

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

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

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

����
SECTION
3
.
�
Section 667-29,
Hawaii Revised Statutes, is amended to read as follows:

����
"
�667-29
�
Authorized bidder; successful
bidder.
�
Any person, including the
foreclosing mortgagee, [
shall be authorized to
]
may
bid for the
mortgaged property at the public sale and to purchase the mortgaged
property.
�
The highest bidder who meets
the requirements of the terms and conditions of the public sale shall be the successful
bidder.
�
The public sale shall be
considered as being held when the mortgaged property is declared by the
foreclosing mortgagee as being sold to the successful bidder.
�
When the public sale is held, the successful
bidder at the public sale, as the purchaser, shall make a nonrefundable
downpayment to the foreclosing mortgagee of [
not
]
no
less than
ten per cent of the highest successful bid price[
.
]
; provided that if
the successful bidder loses the bid to an eligible bidder pursuant to section
667-B, the downpayment shall be refunded.
�

If the successful bidder is the foreclosing mortgagee or any other
mortgagee having a recorded lien on the mortgaged property before the
recordation of the notice of default and intention to foreclose under section
667-23, the downpayment requirement may be satisfied by offset and a credit bid
up to the amount of the mortgage debt."

����
SECTION
4
.
�
Section 667-98, Hawaii Revised Statutes, is
amended to read as follows:

����
"
[
[
]�667-98[
]
]
�
Authorized bidder; successful bidder.
�
Any person, including the association, [
shall
be authorized to
]
may
bid for the unit at the public sale and to
purchase the unit.
�
The highest bidder
who meets the requirements of the terms and conditions of the public sale shall
be the successful bidder.
�
The public
sale shall be considered as being held when the unit is declared by the
association as being sold to the successful bidder.
�
When the public sale is held, the successful
bidder at the public sale, as the purchaser, shall make a nonrefundable
downpayment to the association of [
not
]
no
less than ten per cent
of the highest successful bid price[
.
]
; provided that if the
successful bidder loses the bid to an eligible bidder pursuant to section
667-B, the downpayment shall be refunded.
�

If the successful bidder is the association, the downpayment requirement
may be satisfied by offset and a credit bid up to the amount of the lien debt."

����
SECTION
5.
�
In codifying the new sections added
by section 2 of this Act, the revisor of statutes shall substitute appropriate
section numbers for the letters used in designating the new sections in this
Act.

����
SECTION
6.
�
This Act does not affect rights and
duties that matured, penalties that were incurred, and proceedings that were
begun before its effective date.

����
SECTION 7.
�
Statutory material to be repealed is
bracketed and stricken.
�
New statutory
material is underscored.

����
SECTION 8.
�
This Act shall take effect upon its approval.

INTRODUCED BY:

_____________________________

Report Title:

Foreclosure;
Nonjudicial Foreclosure; Bundled Properties; Public Sale; Prohibition; Eligible
Bidders; Subsequent Bids

Description:

Prohibit
sellers of foreclosed homes from bundling properties at a public sale and
requires each foreclosed home to be sold separately.
�
Specifies that the sale of a foreclosed
property is not final until either fifteen days after the public sale or
forty-five days if an eligible bidder submits a subsequent bid or written notice
of intent to submit a subsequent bid.

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