September 23, 2025

In August 2025, the Hawaiʻi Supreme Court clarified how long lenders have to bring a judicial foreclosure. In Bank of New York Mellon v. White (Aug. 7, 2025) and Deutsche Bank Trust Co. Americas v. Szymanski (Aug. 12, 2025), the Court held that foreclosure actions are subject to the 20-year statute of limitations in HRS § 657-31, not the 6-year contract period in HRS § 657-1. By treating foreclosure as a real property action, the Court established clear guardrails that lenders and servicers can use when managing defaulted loans. This ruling provides needed predictability for Hawaiʻi’s judicial foreclosure system and reduces litigation risk tied to timing disputes.

The Szymanski case illustrates the core issue. Szymanski defaulted on his mortgage in 2008. After the loan changed hands, Deutsche Bank Trust Company Americas, as trustee, sent a notice of default on September 30, 2014, and filed a judicial foreclosure on January 11, 2018. Szymanski argued that the action was barred by Hawaiʻi’s 6-year limit for contract claims. The bank countered that the 20-year statute for real property applied. Relying on its decision in White, the Court sided with the bank and confirmed that lenders have up to 20 years to pursue foreclosure.

The decision carries weight in Hawaiʻi, where judicial foreclosures already take longer than in many other states. By confirming the 20-year period, the Court reduced uncertainty over stale claims while reminding lenders that strict compliance with notice and filing requirements remains essential. Stakeholders will now watch closely to see whether Hawaiʻi’s approach influences foreclosure procedure reforms in other jurisdictions with similarly lengthy timelines.