Disclaimer: This article is for educational purposes only and does not constitute legal advice. Please consult a qualified attorney about your specific situation.

Detailed Answer

1. Verify Entitlement to Surplus Funds

Under Hawaii law, any person with a lawful interest in the property at the time of sale—such as the former owner, junior lienholder, or judgment creditor—may claim surplus funds. See Hawaii Revised Statutes §667-28 et seq. for distribution of surplus proceeds after foreclosure.

2. Obtain Foreclosure Sale Records

Request the clerk of the Circuit Court or the foreclosure trustee for the sale statement. This document shows the sale price, total debt, costs, and surplus amount. Keep certified copies for your petition.

3. Prepare and File Your Petition

File a “Petition to Claim Surplus Funds” in the same Circuit Court that oversaw the foreclosure. Your petition must include:

A caption referencing the foreclosure case number and parties
A statement of your legal interest and basis for entitlement
Copies of the foreclosure sale statement and relevant documents
A proposed order for disbursement

Pay the statutory filing fee. Check current fees on the Hawaii State Judiciary website.

4. Serve Notice on Interested Parties

Serve a copy of your petition and the notice of hearing on all parties listed in the foreclosure action, including the foreclosing mortgagee, junior lienholders, and other claimants. Service must comply with Hawaii Rules of Civil Procedure Rule 4. Ensure proof of service is filed with the court.

5. Attend the Hearing

The court will schedule a hearing—usually 20–30 days from filing—to review competing claims. Be prepared to present evidence of your entitlement. The judge will issue an order directing the clerk to distribute the surplus accordingly.

6. Receive the Surplus Funds

Once the court signs the order, submit the order to the court clerk. The clerk will issue a disbursement check in your name. Collection procedures vary by county; verify with the clerk’s office.

Key Statutes

HRS §667-28: Disposition of surplus funds: https://www.capitol.hawaii.gov/hrscurrent/Vol13_Ch061-085/HRS0667/HRS_0667-28.htm
HRS §667-29: Notice and distribution of surplus: https://www.capitol.hawaii.gov/hrscurrent/Vol13_Ch061-085/HRS0667/HRS_0667-29.htm
HRS §667-31: Claimant’s right to surplus: https://www.capitol.hawaii.gov/hrscurrent/Vol13_Ch061-085/HRS0667/HRS_0667-31.htm

Helpful Hints

Confirm deadlines: Some claims expire if not filed within one year of sale.
Gather proof of interest: Deeds, lien documents, or court judgments help support your claim.
Use the judiciary’s online case search to track filing dates and hearing schedules.
Consider hiring an attorney if multiple claimants dispute entitlement.
Keep originals of all documents; courts often require certified or notarized copies.