§501-118 Foreclosure. [(a)] Mortgages of registered land may be foreclosed like mortgages of unregistered land.
[(b)] In case of foreclosure by action, a certified copy of the final judgment of the court confirming the sale may be filed or recorded with the assistant registrar or the deputy after the time for appealing therefrom has expired and the purchaser shall thereupon be entitled to the entry of a new certificate.
[(c)] In case of foreclosure by exercising the power of sale without a previous judgment, the affidavit required by chapter 667 shall be recorded with the assistant registrar. The purchaser or the purchaser's assigns at the foreclosure sale may thereupon at any time present the deed under the power of sale to the assistant registrar for recording and obtain a new certificate. Nothing in this chapter shall be construed to prevent the mortgagor or other person in interest from directly impeaching by action or otherwise, any foreclosure proceedings affecting registered land, prior to the entry of a new certificate of title.
[(d)] After a new certificate of title has been entered, no judgment recovered on the mortgage note for any balance due thereon shall operate to open the foreclosure or affect the title to registered land. [L 1903, c 56, §63; am L 1913, c 21, §1; RL 1925, §3252; RL 1935, §5062; RL 1945, §12662; am L 1951, c 142, §3; RL 1955, §342-62; HRS §501-118; am L 1972, c 91, §1(v); gen ch 1985; am L 1986, c 246, §10; am L 1988, c 346, §12; am L 1998, c 122, §3]
Rules of Court
Certificates of title, see Rules of the Land Court, part II.
Even assuming arguendo that plaintiffs had valid defenses to the propriety of the non-judicial foreclosure sale of the property, the defenses were time-barred because plaintiff failed to raise them before a new certificate of title was issued; defendant's motion to dismiss granted. 795 F. Supp. 2d 1098 (2011).
A mortgagor's right to "impeach any foreclosure proceeding" is expressly limited to the period before entry of a new certificate of title. 107 H. 95, 110 P.3d 1042 (2005).
Although plaintiffs-mortgagors sought a putative class action for wrongful foreclosure of mortgages against defendant-mortgagee and claimed that under section 501-212, plaintiffs-mortgagors could not be deprived of a tort claim, plaintiffs-mortgagors failed to file their claims prior to the land court's entry of new transfers of certificate of title, as required under this section. 342 F. Supp. 3d 1029 (2018).
Where plaintiff-mortgagors sought putative class action for wrongful foreclosure of mortgages against defendant-mortgagee and sought monetary damages in lieu of a return of title and possession, the court found that plaintiffs-mortgagors, under this section, could not impeach the foreclosure proceedings after the land court's entry of new transfers of certificates of title. Thus, plaintiffs-mortgagors' wrongful foreclosure, unfair and deceptive practices, and unfair methods of competition claims were barred, regardless of how the remedy was styled. 342 F. Supp. 3d 1029 (2018).
Discussed: 814 F. Supp. 2d 1073 (2011).