New Hampshire Foreclosure Laws
Judicial Foreclosure Available: Yes
Non-Judicial Foreclosure Available: Yes
Security Instruments: Mortgage, Deed of Trust
Right of Redemption Period: No
Deficiency Judgments Allowed: Yes
Time Frame: 60 Days
Public Notice: Notice of Sale
New Hampshire is considered to be a title theory state, which means that a property title will remain in trust until the loan is paid in full. A title for a property in New Hampshire can be secured by either a mortgage or a deed of trust.
When a borrower goes into default, New Hampshire law allows for two types of foreclosures to occur: judicial and non-judicial. The state has no right of redemption period, meaning borrowers cannot try and reclaim their property once it has been sold but the state does allow for deficiency judgments, meaning that lenders can sue borrowers for the remaining balance when a foreclosed property is sold at auction for less than what was owed on it.
Types of Foreclosures Allowed in New Hampshire
A judicial foreclosure is also known as foreclosure by judicial sale. It involves selling the defaulted property under court supervision. In order for a judicial foreclosure to be possible, no power of sale clause may be present in the loan documents.
Judicial foreclosures in New Hampshire are similar to strict foreclosures in other states. The lender must file a complaint against the borrower in order to obtain a decreed of sale from a court in the county where the property is located. If the court does indeed decide that the borrower is in default, it will give the borrower a time frame to satisfy the debt and any additional costs before the property is put up for auction. If the borrower cannot repay their debt, then the property will be sold to the highest bidder at auction. Lenders may bid for the property in New Hampshire.
A non-judicial foreclosure, also known as foreclosure by power of sale, requires that the loan documents contain a power of sale clause. The purpose of the clause is to authorize the lender to sell the property in the event of default to be able to recover what is owed on the property.
Non-judicial foreclosures allow for the property to be sold without court supervision. This type of foreclosure process is usually much faster and less expensive than a judicial foreclosure.
There are two ways in which a non-judicial foreclosure in New Hampshire can proceed. If the power of sale clause states a specific time, place, and outlines terms of sale, then the lender must follow the procedure that is stated. If there is no specification, then the following guidelines must be followed:
1. A notice of sale must be recorded in the county where the property is located. The notice must be mailed to the borrower at least twenty-five (25) days before the sale and must also be published weekly for three (3) consecutive weeks in a newspaper that circulates where the property is located. The first publication must be printed no less than twenty (20) days before the foreclosure sale.
2. The notice should contain details about the property and the sale, including the date, time and place of the sale, the amount of the default, as well as a description of the property.
3. The foreclosure sale must be held on the property, unless the power of sale clause states otherwise.
Hiring a Foreclosure Lawyer in New Hampshire
The nation’s economy is in a stagnant state, and many homeowners are having difficulties keeping up with their mortgage payments. Hundreds of thousands of homeowners have experienced pay cuts or have lost their jobs, leading them to fall behind on their mortgages and be in danger of foreclosure. If you are in a similar situation, help is available right now. Turn to a leading foreclosure lawyer in New Hampshire right away to fight for your rights.
Foreclosure attorneys do whatever it takes to ensure you don’t lost your property. They will speak to lenders and try to work out a plan of action that does not involve repossession. Your foreclosure attorney may suggest mortgage modification, short sale or even a temporary halt in payments. Since the process of foreclosing property costs lenders money, your lender will most likely agree to your paralegal’s plan if a suitable option is brought forward.
Speak to a skilled team of foreclosure lawyers in New Hampshire today to get started on your case and prevent your home from being repossessed.