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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.
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