New Hampshire foreclosure laws: how the process works and how long it takes

• RSA 479:25: Primary framework for non-judicial foreclosure in New Hampshire. Authorizes foreclosure by exercise of the power of sale contained in the mortgage. Establishes notice requirements and sale procedures.
• RSA 479:18 et seq.: Framework for judicial foreclosure through the courts. Rarely used because the non-judicial power of sale process is faster.
• RSA 479:26: Governs the conduct of the foreclosure sale, including publication requirements, bidding rules, and the effect of the sale on title.
• RSA 480:1 et seq.: Protects $400,000 of a single person's interest in a home used as a primary residence for the previous 12 months from most creditors; homestead exemptions claimed together total no more than $550,000. Does not protect against mortgage foreclosure.

After a foreclosure sale, the purchaser can recover possession from the former owner or another occupant holding without right, but only after giving written notice to quit and then bringing a possession case in court (RSA 540:12, 540:13). If the purchaser wins, a writ of possession authorizes the sheriff to remove the occupant (RSA 540:14). The federal Protecting Tenants at Foreclosure Act provides 90-day notice to bona fide tenants.

Generally first in time, first in right under New Hampshire recording statutes. Property tax liens have priority over all other liens including first mortgages. Municipal tax lien foreclosure is available.

In New Hampshire, an action to recover real estate must be brought within 20 years after the right to recover first accrued (RSA 508:2), and actions of debt on contracts under seal may be brought within 20 years after the cause of action accrued (RSA 508:5). An action on a note secured by a real estate mortgage may be brought for as long as the lender can bring an action on the mortgage (RSA 508:6). Other personal actions, such as those on unsealed written contracts, generally must be brought within 3 years (RSA 508:4). From January 1, 2028, an undischarged mortgage is treated as discharged 5 years after its stated maturity date, or 35 years after recording if no maturity date is stated, unless an extension or an affidavit that it is unpaid is recorded first (RSA 479:28). Consult a local attorney. An action on a note payable at a definite time must be brought within 6 years after the due date, or after the accelerated due date if the loan was accelerated (RSA 382-A:3-118(a)). For a note secured by a real estate mortgage, RSA 508:6 separately allows an action on the note for as long as the lender can bring an action on the mortgage. We found no New Hampshire statute that sets a specific deadline for a deficiency claim. A lender can sue on a note secured by a real estate mortgage for as long as it can bring an action on the mortgage (RSA 508:6); for a note payable at a definite time, the Uniform Commercial Code sets 6 years after the due date or the accelerated due date (RSA 382-A:3-118). Consult a local attorney.

Any right to reinstate a New Hampshire mortgage depends on the mortgage terms, so whether an executor or personal representative can reinstate the loan does too. State law separately lets the mortgagor redeem before foreclosure by paying all demands secured by the mortgage, plus the damages and costs caused by the default (RSA 479:18).

• Homeowners' and condo associations: A New Hampshire condominium association has a lien on each unit for unpaid assessments; it perfects the lien by recording a memorandum within 6 months after the assessment became due, and must sue to enforce it within 6 years after recording (RSA 356-B:46). The lien generally ranks behind a first mortgage held by an institutional lender, but for a residential unit up to 6 months of regular monthly assessments, plus collection costs, can take priority over that mortgage if the association sends the owner and lender the required delinquency notice and the lender a notice of intent to file the lien. This priority does not cover special assessments, late charges, fines, penalties or interest, and does not apply to mortgages signed before the priority rule took effect. For homeowners associations outside the Condominium Act, check the governing documents.
• Unpaid property taxes: Property tax liens have priority over all other liens, including mortgages (RSA 80:19, 80:59). A town or city uses either the tax sale procedure or the real estate tax lien procedure, under which only the municipality, the county or the state can acquire the lien (RSA 80:87). Anyone with a legal interest in the property can redeem it by paying the amount due with interest and costs at any time before the tax collector gives a deed, which can happen 2 years after the tax sale or the lien (RSA 80:32, 80:38, 80:69, 80:76). Under the lien procedure, the collector must notify the current owner and each mortgage holder by certified mail at least 30 days before deeding (RSA 80:77, 80:77-a). If the municipality refuses the deed, the right to redeem continues indefinitely. After a municipality takes a tax deed, a former owner can repurchase the property by paying the back taxes, interest, costs and penalty, giving notice within 30 days after the municipality's notice that it plans to sell (or within 3 years after the deed is recorded if no notice is received); if the municipality sells the property, it keeps only those amounts, and the rest generally goes to the superior court, which divides it based on ownership and lienholder interests (RSA 80:88, 80:89). Contact the municipal tax collector for specific procedures. New Hampshire's high property tax rates make tax lien issues particularly relevant.

$400,000. Protects up to $400,000 of your interest in a home you have used as your primary residence for the previous 12 months from most creditors; homestead exemptions claimed together total no more than $550,000 (RSA 480:1). Does not stop mortgage foreclosure. New Hampshire's homestead exemption (RSA 480:1) is $400,000 for a single person, and homestead exemptions claimed together total no more than $550,000. To claim it, the home must have been your primary residence continuously for the previous 12 months; proceeds from selling a qualifying home stay protected if reinvested in a new primary residence within 6 months. The full market value can be claimed if the debt came from unpaid medical bills or other debts directly resulting from a terminal or catastrophic injury or illness. The exemption does not apply to taxes, mortgages, homeowners or condominium association assessment liens, or debts that already existed when the home was bought (RSA 480:4). The exemption does not protect against mortgage foreclosure itself.

No New Hampshire-specific military foreclosure protections beyond federal SCRA identified. Under the federal SCRA, if you took out your mortgage before active duty, you generally can't be foreclosed on without a valid court order while you are on active duty and for 12 months after leaving active duty, and you can ask for a mortgage interest rate reduction to 6 percent for the time you are on active duty and for an additional year after. Portsmouth Naval Shipyard (though technically in Maine, serves NH military families) and the New Hampshire National Guard are relevant military presences. Military families should contact their installation legal assistance office immediately if facing foreclosure.

New Hampshire repealed its interest and dividends tax (RSA chapter 77) effective January 1, 2025, but the state still taxes the business profits of business organizations, at 7.5 percent (RSA 77-A:2). Federal tax on canceled debt may still apply unless an exception or exclusion, such as insolvency, applies.