📖 Glossary of Terms

An organization that manages a community, neighborhood, or condominium development and collects dues from homeowners. In Hawai'i, HOA assessment liens have super-priority status and can foreclose ahead of a first mortgage.

The Hawai'i term for a condominium or townhouse association — the legal body of all unit owners that runs the building, sets the budget, and charges assessments. Like an HOA, an AOAO can place a lien on your unit and foreclose if assessments go unpaid.

The single insurance policy an AOAO buys to cover the building's structure and common areas. Its cost is shared by all owners through maintenance fees, so when premiums spike your fees — and special assessments — rise too. It generally does not cover the inside of your individual unit; that is your HO-6 policy.

A charge an AOAO or HOA levies on top of regular dues to cover a large or unexpected cost — major repairs, a rising insurance premium, or a hurricane deductible. It can run into thousands of dollars, is due by a set deadline, and if left unpaid follows the same lien-and-foreclosure path as regular assessments.

A part of your individual condo (HO-6) insurance that helps pay your share of a special assessment when it results from a covered disaster the building's master policy does not fully cover. Limits are often low (commonly $1,000 to $50,000), but many insurers will let you raise them.

The individual policy a condominium owner carries to cover the interior of their unit, personal belongings, liability, and — through loss assessment coverage — a share of certain association charges. It complements, but is separate from, the AOAO's master policy, and most mortgage lenders require it.

A revolving loan secured by your home's equity, much like a credit card you draw against. It usually sits behind your main mortgage as a "second" lien. In a short sale or foreclosure, the HELOC lender must also be dealt with, and may pursue you for the balance unless they agree in writing to waive it.

Any claim recorded against your property after your first mortgage — a second mortgage, HELOC, tax lien, or HOA lien. It is paid only after the first mortgage in a sale. In a short sale, every junior lienholder must approve the deal, and releasing their lien does not by itself erase the debt you still owe them.

A court judgment making you personally liable for the gap between what you owed and what the lender recovered through a foreclosure or short sale. In Hawai'i, owner-occupants are generally protected from a deficiency after a non-judicial foreclosure, but the risk can remain in a judicial foreclosure or with a second-lien lender in a short sale.

When you sell a rental, the IRS "recaptures" the depreciation you deducted (or could have deducted) over the years. That portion of the gain — "unrecaptured Section 1250 gain" — is taxed at a maximum federal rate of 25%, separate from regular capital gains. You owe it even if you never claimed the depreciation. A 1031 exchange defers it, and a step-up in basis at death can erase it for heirs.

A tax move that lets you sell an investment property and defer both capital gains and depreciation recapture by rolling the proceeds into another "like-kind" investment property. Strict IRS deadlines apply — 45 days to identify the replacement and 180 days to close — and you must use a qualified intermediary. It defers the tax; it does not erase it.

The taxable profit when you sell for more than your adjusted cost basis. Property held over a year is taxed at long-term rates (0–20% federally, plus Hawai'i state tax). A primary residence may exclude up to $250,000 of gain ($500,000 married filing jointly); investment property does not, but may use a 1031 exchange instead.

Federal legislation that permanently restored 100% bonus depreciation for qualifying property improvements acquired after January 19, 2025, made the 20% QBI deduction permanent, and raised the SALT deduction cap to $40,000. Affects the sell-vs-hold math for landlords and investors — confirm impact with a CPA.

A federal tax deduction of up to 20% of qualified business income for eligible pass-through businesses. Made permanent by the OBBBA (2025). Some rental income may qualify, subject to income limits and IRS requirements — verify with a CPA.

The federal limit on deducting state and local taxes (property taxes, state income tax) on your federal return. Raised from $10,000 to $40,000 by the OBBBA (2025) — particularly valuable for Hawai'i property owners who pay significant property and state income taxes.

The shared database used by real estate agents to list and search for properties. Listing on the MLS gives a property maximum exposure to buyers island-wide.

A formal agreement with your mortgage servicer to temporarily pause or reduce payments due to financial hardship — without triggering foreclosure. It is not forgiveness: every skipped payment plus accruing interest must still be repaid. For federally-backed loans (FHA, VA, USDA, Fannie Mae, Freddie Mac), servicers are required to offer forbearance when requested. When forbearance ends, options include a repayment plan, payment deferral, partial claim, or loan modification. Act early — the sooner you request it, the more options you have.

A post-forbearance repayment option in which missed payments are moved to the end of your loan term as a non-interest-bearing balance. Your regular monthly payment resumes at the same amount — no lump sum, no higher payment. Available for most government-backed loans (Fannie Mae, Freddie Mac, FHA, VA, USDA). Often the most borrower-friendly exit from forbearance. Ask your servicer specifically about deferral — they are not required to volunteer it.

A federal rule (12 C.F.R. §1024.41) that prohibits mortgage servicers from advancing a foreclosure while a complete loss mitigation application is pending. Once you submit a complete application, the servicer must pause foreclosure activity and evaluate your options first. Submit everything in writing and keep proof of receipt — if the servicer continues foreclosure activity while your application is under review, that is a federal violation. Report it to a HUD-approved counselor or attorney immediately.

A new Hawai'i law (HB467, effective July 1, 2025) giving certain eligible bidders the right to match or beat the winning bid at a non-judicial foreclosure auction within a 15–45 day post-sale window. Eligible bidders include: tenants currently living in the property, prospective owner-occupants, state and county government agencies, affordable housing nonprofits, and community land trusts (CLTs). Properties must also be sold individually — bundling multiple foreclosed properties at a single auction is now prohibited. The sale is not considered final until this window expires.

A property tax relief program that caps how much of a homeowner's income goes toward property taxes. In Honolulu, if your household income is under $80,000 and your property tax exceeds 3% of your gross income, the county covers the difference. You must hold a home exemption and own no other property. Must reapply annually by September 30. Contact Honolulu's Tax Relief Office: 808-768-3205. Other counties may have similar programs — verify with your county RPAD.

A county program allowing qualifying homeowners — often seniors on fixed incomes — to postpone payment of their annual property taxes. Deferred amounts typically become due when the property is sold, transferred, or passes through an estate. Unlike a tax exemption (which reduces the amount owed), deferral just delays when you pay it. Availability and eligibility requirements vary by county. Contact your county's Real Property Assessment Division (RPAD) to ask about current programs.

The county office that manages property tax assessments, exemptions, credits, and deferral programs. Each of Hawai'i's four counties has its own RPAD. O'ahu (Honolulu): 808-768-3799 | Maui: 808-270-7297 | Big Island: 808-961-8201 | Kauai: 808-241-4224. Contact your county RPAD to apply for exemptions, verify your current classification, or ask about tax relief programs.

A legal doctrine that allows someone who has openly, continuously, and hostilely occupied another person's property for a statutory period to claim legal ownership. In Hawai'i, that period is 20 years (HRS §657-31.5 places additional restrictions for properties of 5 acres or less). Common myth: squatters gain rights after 30 days — this is false in Hawai'i. Regular inspection and prompt action against unauthorized occupants prevents adverse possession claims from maturing.

A lawsuit filed in Hawai'i Circuit Court to resolve disputes over who legally owns a property. May be needed when there is an adverse possession claim, an inherited property with a clouded title, a boundary dispute, or a gap in the chain of title. The court "quiets" all competing claims and establishes one clear owner of record. Requires a licensed Hawai'i real estate attorney — not a DIY process.

Hawai'i's legal process for removing unauthorized occupants (squatters) or evicting tenants. File a complaint in District Court, attend a hearing (typically scheduled within 5–10 days), and if successful receive a writ of possession enforced by the sheriff. Self-help removal — changing locks, cutting utilities, or removing belongings — is illegal and exposes the property owner to liability.

The formal legal document a lender files to begin the foreclosure process. In Hawai'i's non-judicial foreclosure system, receiving an NOD starts a critical countdown — request state mediation within 14 days.

A rental arrangement of less than 30 days, often through platforms like Airbnb or VRBO. STR permits are tightly restricted in most Hawai'i counties — verify zoning and permit status before listing your property.

Hawai'i's unique property identification number assigned by each county. You'll need your TMK number when contacting county tax offices, title companies, or applying for property exemptions.

A government agency that insures home loans, allowing lenders to offer mortgages with lower down payments (as low as 3.5%). FHA loans require mortgage insurance premiums (MIP) and have specific credit score requirements.

Offers zero-down-payment home loans for eligible rural and suburban properties. USDA loans have income limits and property location requirements — check eligibility before assuming a property qualifies.

Zero-down mortgage benefit for eligible veterans, active-duty service members, and surviving spouses. VA loans don't require mortgage insurance but do charge a one-time funding fee.

Insurance required on FHA loans to protect the lender if you default. MIP includes an upfront fee (1.75% of loan amount) plus monthly premiums. Unlike PMI, FHA's MIP typically stays for the life of the loan.

The official compilation of Hawai'i state laws. References like "HRS §514B" point to specific legal provisions governing condominiums, HOA liens, and homeowner rights.

A report prepared by a licensed REALTOR® estimating your home's current market value by comparing it to similar properties recently sold, currently listed, or expired in your area. Unlike a formal appraisal, a CMA is free. It helps homeowners understand equity, set a listing price, or evaluate options before a potential sale.

The legal rules governing what owners can and cannot do with a property in a planned community, condominium, or HOA-managed neighborhood. CC&Rs are recorded in the public deed and bind every future owner. They typically cover use restrictions, architectural standards, rental rules, and pet policies. Violations can result in fines and HOA-lien foreclosure.

Hawai'i's non-judicial foreclosure law eliminates the right of redemption after a foreclosure auction — meaning a homeowner cannot reclaim the property by paying off the debt after the sale. Unlike some states where a redemption period exists, in Hawai'i the auction is final. This makes early action and prevention critical.

A tax form issued by a lender when it forgives or cancels all or part of a debt — common after a short sale, foreclosure, or loan modification. The cancelled amount is generally treated as taxable income by the IRS unless an exclusion applies (see QPRI, Insolvency Exclusion). Always consult a tax professional when you receive a 1099-C.

A federal tax exclusion that allowed homeowners to exclude from taxable income the cancelled debt on their primary residence following a short sale, foreclosure, or loan modification. QPRI expired January 1, 2026. Written agreements entered into before that date may still qualify. Consult a tax professional to determine if any exclusion applies to your situation.

A federal tax provision that allows homeowners to exclude cancelled debt from income if they were insolvent at cancellation — meaning total liabilities exceeded total assets. Unlike QPRI, the Insolvency Exclusion is still available. Form 982 is filed with your tax return to claim it. A CPA or tax professional can determine if you qualify.

Funds remaining after a foreclosure sale once the lender's debt, fees, and costs have been paid in full. If the winning bid exceeds what was owed, the surplus belongs first to junior lien holders in priority order, then to the homeowner. In Hawai'i, surplus funds are distributed through the court — they are not automatically sent to you. Homeowners must actively claim them.

A provision of Hawai'i law giving HOA and AOAO assessment liens "super-priority" over a first mortgage for up to six months of unpaid dues. This means an HOA can foreclose and extinguish a first mortgage for a relatively small amount of missed assessments — even if your mortgage payments are current. Missing HOA dues can cost you your home. See also: AOAO, Special Assessment.

An annual review lenders perform to reconcile your escrow account — the portion of your mortgage payment held to pay property taxes and homeowner's insurance. If costs increased, your lender will issue an escrow analysis showing a shortage, typically resulting in a higher monthly payment going forward. Review this notice carefully; you can request a correction if the numbers are wrong.

A Hawai'i law signed in July 2025 to ease the condo insurance crisis. It reactivated the Hawai'i Hurricane Relief Fund to offer hurricane coverage to eligible associations, expanded the Hawai'i Property Insurance Association, and created the Condominium Loan Program. New Act 296 loan commitments are authorized through June 30, 2027.

A Hawai'i program created by Act 296 (2025) offering low-interest loans to condo and townhouse associations so they can complete the repairs and maintenance insurers require before writing or renewing coverage — helping buildings become insurable again. Associations apply through the state.

A state fund first created after Hurricane Iniki in 1993 and reactivated in 2024-2025 that provides a layer of hurricane property insurance to condo and townhouse associations private insurers have turned away. Associations reapply each year through a licensed insurance producer. Managed by the DCCA Insurance Division.

A licensed accounting professional. Recommended for tax questions related to real estate sales, HARPTA withholding, capital gains, and VA benefit taxation.

Hawai'i state office that records all property documents — deeds, mortgages, liens, releases. After resolving a foreclosure or lien, verify the release is recorded at the BOC to clear your title. Searching records online is free. Document copies cost $1 per page. Phone: 808-587-0147 (Mon–Fri 7:45 a.m.–4:30 p.m.) · dlnr.hawaii.gov/boc/

Hawai'i state agency that administers the Mortgage Foreclosure Dispute Resolution program — providing free mediation between homeowners and lenders facing foreclosure.

State agency that administers residential, agricultural, and pastoral leases to native Hawaiians. DHHL properties have unique title structures and financing requirements — work with lenders experienced in DHHL transactions.

Hawai'i state agency that provides emergency housing assistance, rental aid, and social services. Contact DHS if you're facing homelessness after foreclosure or need temporary housing support.

A Hawai'i state tax withholding law that requires buyers to withhold a percentage of the sales price when a seller is not a Hawai'i resident. Active duty servicemembers with PCS orders may qualify for a waiver.

Hawai'i's equivalent of a business activity tax, applied to all rental income — 4% statewide plus a 0.5% county surcharge on all four counties (4.5% effective rate on O'ahu). Unlike a sales tax, GET is technically owed by the landlord, but can be passed through to tenants as a lease line item. Landlords file Form G-45 with the Hawai'i Department of Taxation. Verify current rates at tax.hawaii.gov.

Non-profit HUD-approved housing counseling agency offering free foreclosure prevention, homebuyer education, and financial counseling. HHOC counselors are independent and have no financial stake in your decisions. Contact: 808-523-9500, hihomeownership.org

State agency managing public housing and Section 8 rental assistance programs. If you lost your home to foreclosure, HPHA can help with emergency housing placement and rental vouchers.

Federal agency that oversees housing programs and approves housing counselors. HUD-approved counselors provide free foreclosure prevention and homeownership advice — with no financial stake in what you decide.

The U.S. federal tax collection agency. IRS federal tax liens attach to real property and must be resolved or subordinated before a clean title can transfer at closing.

The military's legal corps. JAG offices on military installations provide free legal assistance to active duty servicemembers and eligible veterans on matters including SCRA rights, foreclosure, and real estate.

Hawai'i state agency providing free advocacy, benefits assistance, and claims support for veterans, families, and survivors across all islands. dod.hawaii.gov/ovs

The state university system with campuses on multiple islands. Active duty servicemembers and their dependents stationed in Hawai'i qualify for in-state tuition regardless of home state.

A monthly tax-free housing stipend paid to active duty servicemembers based on rank and duty location. Hawai'i BAH rates are among the highest in the nation — increasing 4.2% in 2026.

A federal process for reorganizing U.S. military installations. Servicemembers relocated due to BRAC may qualify for the DoD Homeowners Assistance Program (HAP) for financial relief on a home sale loss.

A VA health care program for surviving spouses and dependents of 100% disabled or deceased veterans who do not qualify for TRICARE. Call 800-733-8387 to check eligibility.

The federal agency that handles military pay and Survivor Benefit Plan (SBP) payments. Call 800-321-1080 to verify SBP enrollment status.

A tax-free monthly VA payment to surviving spouses, children, and parents of servicemembers who died in the line of duty or from service-connected causes. 2026 base rate: $1,699.36/month. All payments are completely tax-free including Hawai'i state taxes.

A federal tax withholding law that applies when foreign nationals sell U.S. real property. Relevant to some military families with non-citizen spouses.

A federal program that provides financial aid to military homeowners who lose money on a home sale due to a BRAC-related PCS move.

A streamlined VA refinance loan that allows veterans with existing VA-guaranteed mortgages to lower their interest rate with minimal paperwork. No new appraisal or income verification required.

A 2022 federal law that significantly expanded VA health care and benefits eligibility for veterans exposed to burn pits, Agent Orange, and other toxic substances — including expanded DIC eligibility for survivors.

Official military orders directing a servicemember to relocate to a new duty station. PCS orders trigger important rights including SCRA lease termination and HARPTA capital gains suspension in Hawai'i.

A new foreclosure-prevention tool created by the VA Home Loan Program Reform Act, signed July 30, 2025. For VA-guaranteed loans on a primary residence, the VA advances funds to bring a delinquent loan current; the advance is recorded as a no-interest, no-monthly-payment second lien repaid only when the home is sold, refinanced, or paid off. Available to active duty, veterans, surviving spouses, and former spouses who meet eligibility criteria. See Military & Veteran page for full details.

The SBP equivalent for Reserve and National Guard members. Annuity payments to surviving beneficiaries are exempt from Hawai'i state income taxes.

An older predecessor to the Survivor Benefit Plan. Annuity payments are exempt from Hawai'i state income taxes, the same as SBP and RCSBP.

A DoD program providing up to 55% of a servicemember's retired pay to an eligible surviving spouse or dependent after the servicemember's death. As of January 1, 2023, SBP and DIC can both be received simultaneously with no offset.

A federal law protecting active duty servicemembers from foreclosure without a court order, capping pre-service debt interest at 6%, and allowing lease termination with qualifying orders. Must be invoked in writing — not automatic.

The health care program for active duty servicemembers, retirees, and their dependents administered by the Department of Defense. Surviving spouses who lose TRICARE eligibility may qualify for CHAMPVA.

A VA program that previously assisted veterans in financial difficulty by purchasing and modifying their VA-guaranteed loans. VASP ended in May 2025 and was replaced by the VA Partial Claim Program.

A nonprofit organization providing zero-interest loans and grants to active duty Soldiers, retirees, Guard/Reserve members, and their families for emergency housing, utilities, medical/dental, and other immediate needs. Contact: 1-866-878-6378, armyemergencyrelief.org

A nonprofit providing no-interest loans and grants to active duty, retired, Guard, and Reserve Airmen/Guardians. Offers Falcon Loans up to $1,000 for immediate needs. Contact: 1-800-769-2327, afas.org

A classification for working households that earn above the poverty line but lack sufficient resources for basic needs (housing, food, transportation, utilities, childcare). The ALICE Fund provides direct funding to nonprofits supporting these families in Hawaiʻi.

The federal agency providing disaster assistance including emergency housing, temporary shelter, and recovery aid for residents impacted by declared disasters (hurricanes, storms, floods). Check ready.hawaii.gov for active programs and eligibility.

A federal/state program providing up to $60,000 to homeowners experiencing financial hardship. Funds can be used for mortgage reinstatement, legal fees, utilities, property taxes, and other housing-related expenses. Contact: HHFDC (808) 587-0595

A state agency offering affordable mortgages (Hale Kamaʻāina Program at 5.4%-5.65%), down payment assistance, rental programs, and emergency homeowner assistance. Also administers the Homeowner Assistance Fund. Contact: (808) 587-0595, dbedt.hawaii.gov/hhfdc

A nonprofit on Maui providing emergency housing assistance, utilities support, and other services to residents in financial hardship. Administers the Hawaiʻi Relief Program for Maui County. Contact: (808) 244-3177

A nonprofit providing interest-free loans and grants to active duty, retired Navy/Marine Corps, Reservists, and survivors for emergency needs. Offers Quick Assist Loans (QALs) at 200+ offices worldwide. Contact: 1-800-654-8364, nmcrs.org

A Hawaiʻi state grant program administered by Catholic Charities providing rental assistance, security deposits, and utility help to residents at risk of homelessness. Contact: (808) 521-4357 ext. 1

A federal/state program providing up to 4 months of housing and utility assistance to families with dependent children experiencing financial hardship. Direct payments made to landlord, mortgage lender, or utility provider. Contact: Catholic Charities (808) 521-4357 ext. 1 or MEO for Maui