New Hampshire
Foreclosure Law
Summary
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.
DISCLAIMER
