New Hampshire Foreclosure Law Summary
Stop New Hampshire Foreclosure
Quick Facts
- Judicial Foreclosure Available: Yes
- Non-Judicial Foreclosure Available: Yes
- Primary Security Instruments: Deed of Trust, Mortgage
- Timeline: Varies by Process; Typically 60 days
- Right of Redemption: None
- Deficiency Judgments Allowed: Yes
In New Hampshire, lenders may foreclose on a mortgage or deed
of trust in default by using either the judicial or non-judicial foreclosure processes
or any of the following special methods: Entry under Process, Entry and Publication
or Possession and Publication.
Judicial Foreclosure
In New Hampshire, the judicial process of foreclosure is very
similar to that of the strict foreclosure process used in other New England states.
The judicial foreclosure process is one in which the lender must file a complaint
against the borrower and obtain a decree of sale from a court having jurisdiction
in the county where the property is located before foreclosure proceedings can begin.
Generally, if the court finds the borrower in default, they will give them a set
period of time to pay the delinquent amount, plus costs. If the borrower does not
pay within the set period of time, the court will then order the property to be
sold. Anyone may bid at the foreclosure sale, including the lender.
Non-Judicial Foreclosure
The non-judicial process of foreclosure is used when a power of
sale clause exists in a mortgage or deed of trust. A "power of sale" clause is the
clause in a deed of trust or mortgage, in which the borrower pre-authorizes the
sale of property to pay off the balance on a loan in the event of the their default.
In deeds of trust or mortgages where a power of sale exists, the power given to
the lender to sell the property may be executed by the lender or their representative,
typically referred to as the trustee. Regulations for this type of foreclosure process
are outlined below in the "Power of Sale Foreclosure Guidelines".
Power of Sale Foreclosure Guidelines
If the deed of trust or mortgage contains a power of sale clause
and specifies the time, place and terms of sale, then the specified procedure must
be followed. Otherwise, the non-judicial power of sale foreclosure is carried out
in the following phases:
A notice of sale must be recorded in the county where the property
is located and then: 1) mailed to the borrower at least twenty-five (25) days before
the sale; and 2) published once a week for three (3) weeks, with the first publication
appearing not less than twenty (20) days before the sale, in a newspaper of general
circulation in the county where the property is located.
The notice should contain the time, date and place of sale, a
description of the property and the default, as well as a "warning" to the borrower,
informing him the property is going to be sold and what rights he has to stop the
procedure.
The foreclosure sale must be held on the property itself, unless
the power of sale clause specifies a different location.
Special Methods of Foreclosure
- Entry under Process - The lender may foreclose by entering
the property under process of law and maintaining actual possession of the property
for one year.
- Entry and Publication - By peaceable entry onto the property
and continued, actual, peaceable possession for a period of one year, and by
a publishing a notice stating the time of possession, the lender and borrowers
name, the date of the mortgage and a description of the property in a newspaper
of general circulation in the county where the property is located. The notice
must be published for three (3) successive weeks, with the first publication
appearing at least six (6) months before the borrowers right to redeem has expired.
- Possession and Publication - By the lender in possession
of the property publishing a notice stating that from and after a certain day,
the property will be held for default of the mortgage and the borrowers rights
to the property will be foreclosed. Said notice must be published in a newspaper
printed in the county where the property is located for three (3) successive
weeks and must give the borrower and lenders name, the date of the mortgage,
a description of the property and the lenders intention to hold possession of
the property for at least one (1) year.
Borrowers have no rights of redemption when any of the three (3)
special methods of foreclosure are used.
More information
on New Hampshire foreclosure laws.
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