 New Hampshire Loan Modification Guidelines
When you develop a definite plan of action with well-timed, well-informed
steps, you can stop the foreclosure process and save your home. We have
outlined the foreclosure process for the state of New Hampshire.
New Hampshire has two broad classes of mortgage foreclosures:
1. foreclosures made on mortgages without power of sale clauses.
2. foreclosures made on mortgages with power of sales clauses.
Foreclosures made without power of sale clauses are conducted similar
to strict foreclosures, in which the lender must work to obtain possession
of the premises. Foreclosure made with power of sale clauses revolve around
giving the proper notices and conducting proper foreclosure sales.
Although mortgages with power of sale clauses are much more common than
those without, it is still possible to have a mortgage without a power
of sale clause in New Hampshire. In this event, the foreclosure works much
like strict foreclosure in other New England states. In order to foreclose,
a lender must recover possession lawfully, and hold it for a required length
of time (one year in New Hampshire), before title becomes final in the
name of the lender. There are three ways to recover possession.
1. In entry under process, the leader files a lawsuit and obtains a court
order authorizing entry.
2. In entry and subsequent publication, the lender peaceably enters the
premises and continues occupation for a year. An affidavit from the party
and witnesses as to the time, manner and purpose of the entry should be
recorded. A notice stating the time at which the possession by the lender
for the purpose of foreclosure was commenced should be published three
weeks successively, with the first publication to be at least six months
before the right to redeem would be foreclosed. The notice should give
the date of the mortgage and a description of the property. A copy of the
notice, and a sworn affidavit as to when, where, and how it was published
should also be recorded.
3. In possession and publication, the lender already is in possession
and simply publishes a notice stating that from a certain day forward,
the lender retains possession because the mortgage conditions were broken
by the borrower, and that the purpose of the lender's continued possession
is foreclosure. The date of the mortgage and a description of the premises
should also be stated. The day stated in the notice should be no later
than four weeks after the initial advertisement. The notice should be published
in a newspaper of general circulation in the county where the real estate
is located. A copy of the notice and an affidavit stating when, where and
how it was published should be recorded.
It is possible to foreclose a mortgage with a power of sale clause in
New Hampshire by filing a lawsuit in court and obtaining a court decree
commanding the sale of the property, with a confirmation of the completed
sale by the court. On the other hand, it is much more common to publish
and serve notice of a foreclosure sale in the proper manner, and then sell
the property at the sale to the highest bidder.
A foreclosure sale without court action must be preceded by the appropriate
notices. The borrower must be sent a notice at least 25 days before the
sale. The notice should contain the following warning: "You are hereby
notified that you have the right to petition the Superior Court for the
county in which the mortgaged premises are situated, with service upon
the mortgagee ( lender), and upon such bond as the court may require, to
enjoin the scheduled foreclosure sale." Unless the borrower sues prior
to the foreclosure sale, the borrower may not challenge the foreclosure
in court at a later date. The lender should also publish a notice of the
foreclosure sale once a week for three weeks in a newspaper of general
circulation in the county or town where the property is located. The first
publication must not be less than 20 days before the foreclosure sale.
The actual foreclosure sale must be held on site at the house or on the
real property that is being foreclosed, unless the mortgage specifies a
different location. A report of the sale must be made in ten days. The
person who sells the property at the foreclosure sale must record the deed,
a copy of the notice of sale and an affidavit describing the sales procedure
to be recorded within 30 days of the sale. Title passes with the recording
of the deed.
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