New Hampshire foreclosure law

Lenders in New Hampshire can foreclose on any mortgage or deed of trust in default. The state allows both judicial and non-judicial foreclosures, as well as three other “special methods” depending on the contract. The timeline varies according to the process used, but the borrower has no rights of redemption (he or she cannot redeem the property after the sale) in any of the three.

Judicial foreclosure
A New Hampshire judicial foreclosure is carried out in much the same way as the New England strict foreclosure. Basically, the lender has to file a complaint in a court whose jurisdiction covers the county where the property is located. If the court confirms the default, it issues a decree of sale, which marks the start of the foreclosure process.

Once the foreclosure is declared, the borrower is given a short time frame within which he or she must cure the default; that is, they must pay the past-due balance plus attorney’s fees and other costs. Otherwise, the court orders the sale of the property via public auction. The auction is open to all, including the lender, and awards the home to the highest bidder.

Non-judicial foreclosure
The non-judicial foreclosure process is used when the contract includes a Power of Clause. This clause serves as an authorization for the lender to sell the home as payment for the mortgage in case the borrower defaults. This authority may be used by the lender or given to a representative called the trustee.

Generally, the terms specified in the Power of Sale will be followed throughout the non-judicial foreclosure. If the clause doesn’t specify the time, date, and place of the sale, the foreclosure proceeds as follows:

First, the lender files a Notice of Sale at the county office where the home is located. The notice should contain the date, time, and place of the sale, a description of the home, details of the default, and a warning message to the borrower stating his rights to stop foreclosure. A copy of the notice is mailed to the borrower at least 25 days before the sale date. The notice is also published in a local newspaper once a week for three consecutive weeks. The first ad must be published at least 20 days before the sale date.

If the borrower doesn’t cure the default by the specified date, the lender proceeds to the foreclosure sale. The auction is conducted on the home itself, unless the Power of Sale specifies otherwise.

Special methods

1) Entry Under Process
This type of foreclosure allows the lender to simply enter the borrower’s home, under the process of law. The foreclosure is completed if the lender maintains actual possession for at least one year.

2) Entry and Publication
This method requires the same one-year possession period as Entry Under Process. In addition, the lender must publish a notice in a newspaper circulated in the county where the home is located. The notice must include the names of the lender and borrower, the date of the mortgage, a description of the property, and the time of the possession. The ads must appear for at least three consecutive weeks, with the first ad posted no less than six months before the borrower’s redemption period expires.

3) Possession and Publication
In this method, the lender posts a notice stating that within a given period, the home will be held for default and the borrower’s rights to it foreclosed. The notice should include the names of the lender and the borrower, the mortgage date, a description of the home in default, and a statement of the lender’s intent to maintain possession for at least one year. This notice is published in a local newspaper for three consecutive weeks.

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