Judicial/ Non-Judicial Foreclosure: Available/ Available
Right of Redemption / Deficiency Judgment: No / Yes
Timeline: 60 Days, Can vary depending on individual cases
Deed of Trust / Mortgage as Security Instruments: Deed of Trust, Mortgage
Both Judicial and Non-Judicial foreclosure processes can be followed in New Hampshire.
There are three additional methods that can be followed in New-Hampshire – Possession & Publication, Entry & Publication, Entry Under Process.
Judicial Foreclosure process:
A Judicial foreclosure process involves the lender filing a lawsuit against the borrower in case of a default. If the court finds that the borrower has defaulted on the mortgage payment, it determines the exact amount that needs to be paid by the borrower (including interest costs, etc) and gives them some time to do so. In case the borrower does not pay the amount due to them, the court gives an order authorizing the foreclosure sale where the property is sold to the highest bidder through a public auction. Even the lender may bid at the foreclosure sale, if they want to. This procedure is similar to the strict foreclosure procedure followed in New England states.
Non-Judicial Foreclosure process:
A Non-Judicial foreclosure process is followed if a power of sale clause is present in the Deed of Trust/ Mortgage document. The power of sale basically authorizes the lender or their authorized representative (referred to as Trustee) to conduct the foreclosure sale in case the borrower happens to default on the mortgage payment. The following guidelines may be followed for the same.
If the power of sale document contains the terms of the foreclosure sale including time and location, the same can be followed. Otherwise, the following process can be followed.
A notice of sale, containing all the details of the lender/ borrower/ property/ foreclosure sale, etc. needs to be recorded at a recorder’s office in the same county where the property is located. This notice should also have a warning that the property is going to be sold, and it should contain the details of how the borrower can claim it back.
This notice needs to be sent by registered post to the borrower within twenty-five days before the actual foreclosure sale/auction date. It should also be advertised in a local newspaper at least one day for three consecutive weeks. The newspaper should be available at the county where the property is located and the first advertisement should be carried at least 20 days before the actual date of sale/ auction.
If the power of sale document mentions a venue for the foreclosure sale, it can be held there. Otherwise, it needs to be held at the location of the property itself.
Other methods of Foreclosure:
- Possession & Publication: Under this method, the lender is required to advertise a notice in a local newspaper available in the county at least one day for three consecutive weeks stating that the borrowers right to the mortgage property ends on so and so date / time and the lender would be taking possession of the property from the said date/ time, as the borrower has defaulted on their mortgage payment. This notice should contain all the details of the lender/borrower, date of mortgage and the lender’s willingness to hold the property for period of one year, after which it will be sold through a foreclosure sale/ auction.
- Entry & Publication: Under this method, the lender can enter into the property peaceably and continue holding the property in their possession for a period of one year. A notice containing the description of the property, lender/ borrower’s details, date of possession, etc. needs to be published in a local newspaper for at least three consecutive weeks (once per week) with the first notice appearing at least six months before the borrower loses their right of redemption.
- Entry Under Process: The lender can enter the property peaceably and hold possession of the same for a period of one year after which the property can be sold off through a foreclosure sale/ auction.