Hawaii Foreclosure Auction/Sheriff Sales on Leasehold Properties

[Greg Gaudet]

Aloha All

I'm wondering if anyone has ever bought a Lease Hold property at a Hawaii court commissioners auction? And if so how much did you have to pay in back owed lease payments? 

I love our system as it relates to most other arrears, but everything I can find says that there's no limit on back owed lease rents that can be transferred to the buyer and no one is able or willing to tell me how much is owed on this condo that we're planning on bidding on at the court house tomorrow! I feel like it's a good enough deal to take the chance, but a little assurance would really be nice! 

[Elijah F.]

Based on my experience there is no limit to back owed lease rent because the lease agreement is superior to any mortgage or AOAO lien. The outstanding lease rent stays with the property and the lessor can foreclose on the property for that amount plus fees. You should be able to buy the lease documents from the BOC and estimate how much is owed on the property. You could also ask the lessor for an outstanding balance--they may share the info with you.