New Hampshire Foreclosure Laws

New Hampshire foreclosures are generally non-judicial or out-of-court proceedings. Most foreclosures take three months from first filing to final sale.

Pre-Foreclosure

Virtually all foreclosures in New Hampshire are non-judicial because almost all mortgages have a power of sale clause, giving the lender the right to sell a property without filing a lawsuit in the event that a debtor defaults. Most mortgages in the state demand that the debtor is sent a default notice. This notice is usually required to offer a thirty day grace period, details of the default amount, and a warning that non-payment of the debt will result in foreclosure. If during this grace period - which is the pre-foreclosure period in New Hampshire - the debtor does not pay the debt amount, the lender can schedule a sale to sell the property. During the pre-foreclosure stage and at any point before the foreclosure auction, the debtor can pay the default amount and incurred costs in order to stop the foreclosure and redeem the property.

Notice of Auction

If the debtor fails to pay the default amount, the lender must publish a notice of sale. This notice must contain the location of the property, the terms of the sale, the location and time of the sale, and the date of the mortgage. The notice of sale is sometimes called the notice of auction. The notice must be published for three weeks, once a week in a local newspaper. The first appearance of the notice in the newspaper must occur at least 21 days before the auction date. Also, at least 26 days before the auction, the notice must be delivered to the debtor.

Most foreclosure auctions in New Hampshire are overseen by a professional auctioneer or by the lender's legal representative. Most sales take place at the property and all are open to the public. The opening bid is usually established as between 70% and 85% of the property's value, as determined by an assessment. The winning bidder must pay the full bid amount within sixty days of placing the winning bid. At this point, the ownership of the property is transferred to the bidder.