I’m a homeowner in Concord, New Hampshire, and I’m going through a nonjudicial foreclosure. (At least I think it’s nonjudicial since there’s no court involved.) I don’t want to lose my house and I was wondering if I have the right to buy it back after the sale. Can I do this?
Assuming your foreclosure is like most foreclosures in New Hampshire and is nonjudicial (the vast majority are), you don’t get the right to repurchase or “redeem” the home after the sale. (Some states allow a foreclosed homeowner in your position to repurchase the home after the sale by reimbursing the person or other entity who bought it at the foreclosure sale for the full purchase price. This is called the “statutory right of redemption.” However, New Hampshire law does not provide you with this right.)
You can, however, redeem the home before the sale.
When You’re Allowed to Redeem
Under New Hampshire law, you have up until the foreclosure sale occurs to redeem by paying off the full amount of the unpaid debt, which will stop the foreclosure (N.H. Rev. Stat. Ann. § 479:18).
If you don’t redeem the home (or work something else out with the lender to stop the foreclosure) before the sale, you won’t get another opportunity to save the house.
You might be able to buy the home after the foreclosure sale once the lender puts it back on the market as an REO, but you shouldn’t count on being able to do this. For one thing, you have no idea what price they might ask for the home. In addition, you could have competition from other potential buyers.
How Much You'll Have to Pay to Redeem Your Home
In order to redeem, you must pay the full amount of the unpaid debt, including all costs that the lender incurred due to your defaulting on the loan, such as attorney's fees. To find out the exact amount to redeem (and the procedures for redeeming) call the foreclosing lender’s attorney. You may also wish to consult with a New Hampshire attorney who can help you with the process.
Other Options to Stop the Foreclosure
If you want to stop the foreclosure sale and keep your home, there might be a few other options available to you -- so long as you take action before the foreclosure sale happens. Besides redeeming the home, you may be able to, for example:
- pay the foreclosing lender the total amount of the past-due payments (plus interest, fees, and costs) to reinstate (catch up on) the loan, or
- work out an alternative to foreclosure that will allow you to keep the house, such as a mortgage modification, forbearance agreement, or repayment plan.
Nonjudicial foreclosures in New Hampshire can be completed quite quickly once started, usually in just a couple of months. (To learn more about foreclosure laws and procedures in New Hampshire, visit Nolo’s New Hampshire Foreclosure Law Center.) This means that if you want to redeem, reinstate, or work out an alternative to foreclosure with the foreclosing lender, your time to do so is very limited. Since time is short, you may want to hire an attorney to help you.
Finding New Hampshire’s Redemption Law
To find the statute that discusses the right to redeem in New Hampshire, go to Title XLVIII, Chapter 479 of the New Hampshire Statutes.