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A deficiency judgment will result when a lender forecloses on an individual’s home. If the price that the lender receives upon selling the home in foreclosure is less than the amount that a homeowner owes on the home at the time of foreclosure then the resulting amount will be deemed a deficiency. For example, if a homeowner owes $300,000 on a property and the lender receives only $275,000, then the difference of $25,000 will be considered the deficiency. There are certain guidelines in place that will govern when deficiency judgments are allowed in New Hampshire.
Deficiency Judgments in New Hampshire
Foreclosures in New Hampshire are conducted via non-judicial foreclosure process. This means that a lender will not have to file a complaint with the court in order to foreclose on an individuals home. Each mortgage contains a deed of trust, which allows the lender to assert a power of sale to sell the property by adhering to a strict legal process. This will include filing a notice of sale in the county where the property is located for three weeks before the property can be sold at a foreclosure sale.
Deficiency judgment will be allowed in New Hampshire whenever the foreclosure sale doesn’t satisfy the amount owed on the mortgage by the homeowner. Deficiency judgments will not occur automatically, In order to get a deficiency judgment in New Hampshire, a lender must file a complaint for same after the court enters a confirmation of the sale. Lenders will have to prove that they made an attempt to get the full market price of the home via the foreclosure sale or they will be barred from being an action for deficiency.
Seeking Legal Help
Foreclosures in non-judicial states are governed strictly by statute. Homeowners must ensure that they are diligent in pursuing or dealing with any types of correspondence from the lender. Only an attorney that is licensed to practice within the state of New Hampshire can provide you with the legal guidance and expertise that you will need in facing a deficiency judgment. Deficiency judgment in New Hampshire can have long reaching financial consequences, so make sure that you hire an attorney with foreclosure experience to help you.
