Determining Surplus Funds After a Foreclosure Sale in New Hampshire
Disclaimer: This article is for educational purposes only and does not constitute legal advice. Consult a qualified attorney for advice on your specific situation.
Detailed Answer
When a property in New Hampshire is sold at a foreclosure sale under RSA Chapter 479, the sale proceeds first satisfy the mortgage, statutory fees, and sale costs. Any remaining proceeds—known as surplus funds—belong to the foreclosed owner or other parties with a lawful claim, such as junior lienholders. To determine whether surplus funds remain, an interested party should follow these steps:
1. Review the Public Foreclosure Notice
RSA 479:24 requires the mortgagee or its agent to publish a notice of sale in a local newspaper at least three weeks before the auction. That notice typically lists the mortgage balance, attorney’s fees, and other costs. Compare the total owed with the sale’s high bid to gauge potential surplus.
2. Obtain the Final Sale Report
Within 30 days after the sale, the foreclosing party must file a sale report with the county registry of deeds, detailing the gross proceeds and distribution of funds. Contact the registry office (e.g., New Hampshire Division of Records Management and Archives) to request a copy of this report.
3. Calculate Possible Surplus
Using the sale report, subtract the mortgage balance, accrued interest, attorney’s fees, publication costs, and other permitted expenses from the sale price. If this calculation yields a positive number, those are the surplus funds.
4. File a Claim for Surplus Funds
RSA 479:25 provides that any surplus must be paid to the former owner or junior lienholders upon proof of claim. To recover funds, file a motion in the superior court that oversees the county where the sale occurred. The court will set a hearing to verify claims and distribute the surplus.
5. Track Filing Deadlines
Under RSA 479:26, claims to surplus funds must generally be filed within six months of the sale date. Missing this deadline may forfeit your right to the funds.
Helpful Hints
- Check RSA 479:24 and RSA 479:25 online for full statutory language: RSA 479:25.
- Visit the county registry of deeds website to view foreclosure sale filings and reports.
- Gather documentation of your claim, such as proof of junior lien or former ownership.
- Consider hiring a foreclosure fund recovery company or consulting an attorney to assist with filings.
- Keep copies of all notices, reports, and court filings for your records.