- 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.
