by Doreen Martel

Created on: November 14, 2011   Last Updated: November 17, 2011

New Hampshire Statutes Chapter 479 deals entirely with real estate and mortgages. Section 18 states that New Hampshire does not offer any rights of redemption during the foreclosure process. This means that a homeowner who is facing foreclosure may only exercise their rights to retain their property up through the date of the foreclosure sale.

How are foreclosures handled?

Before a lender can begin the foreclosure process, they must file a complaint in the court in the county where the property is located.  The borrower (the homeowner) has the right to fight the complaint if they wish. Borrowers who have concerns about the validity of the lenders claims either because (a) they believe they are not behind on their payments or (b) if they believe that the lender does not own the mortgage (see robo-signing scandals) may use either as a defense.

Once the foreclosure complaint is filed, it is up to the judge to issue a ruling. In the event that they rule that the homeowner is behind on payments, they may allow for a specif period of time to correct the arrears. In the event that the homeowner is able to repay any outstanding payments, the foreclosure proceedings are halted.  Otherwise, the lender may proceed to sell the property.

Are there other foreclosure options?

New Hampshire also has a non-judicial foreclosure procedure that is dictated by the mortgage documents that were signed when the loan was made to the homeowner. Some mortgages contain a “power of sale” clause that may be invoked to avoid a judicial foreclosure.

There are three other allowable methods of foreclosure in New Hampshire known as (1) entry under possession, (2) entry and publication and (3) possession and publication. None of these options allows the homeowner to exercise any foreclosure redemption rights in New Hampshire.

According to RealtyTrac, one in every 694 homes in New Hampshire received a foreclosure notice.  This means that hundreds of people in the state are now facing foreclosure. As the mortgage crisis continues, homeowners must be aware of their foreclosure redemption rights. In addition, those who purchase homes at foreclosure auctions or sales also need to understand redemption rights in order to protect their investment.

In spite of the fact that homeowners do not have any foreclosure redemption rights in New Hampshire, it is important to note that New Hampshire lenders may exercise their rights to file for a deficiency judgment. Deficiency judgments may be sought by lenders who have sold a foreclosed property for less than the amount of the outstanding mortgage. Homeowners who have received a foreclosure notification should consider contacting a qualified lawyer to help them through the process of foreclosure and help protect their rights.

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