New Hampshire's home loan industry offers a typical selection of home loan products to consumers. These home loans are protected by a unique set of foreclosure processes that typically favor the lender. Furthermore, several of these foreclosure processes are unique to the area. As a result, New Hampshire's foreclosure processes are worth studying closely. Here is some background information about New Hampshire's home values, population trends and mortgage industry that can aid in the study of New Hampshire's foreclosure processes.
|NH Rank||US Rank||Metropolitan Area||2016 Pop||2010 Pop||Change||% △|
|1||10||Boston-Cambridge-Newton, MA-NH Metro Area||4,794,447||4,552,402||242,045||5.32%|
|3||206||Claremont-Lebanon, NH-VT Micro Area||216,307||218,466||-2,159||-0.99%|
|7||720||Berlin, NH-VT Micro Area||38,215||39,361||-1,146||-2.91%|
New Hampshire's median home values tend to be significantly higher than the 4th quarter 2009 national median price of $179,900.
To illustrate this point, here are the February, 2010 median home values for three of New Hampshire's most populated cities:
There are two major reasons why this is the case:
First, New Hampshire's high median income makes the state less income-sensitive to home prices. New Hampshire's 2009 median income for a family of 4 was $87,396 - (source). This high median income makes New Hampshire residents less income-sensitive to the price of a home. In fact, it can be reasonably deduced that New Hampshire's income elasticity of demand for housing is one of the lowest in the country. This low income elasticity of demand for housing has a tendency to drive home values higher.
Second, there is always a high demand for quality housing in New Hampshire. This is the case because the state has a well-deserved reputation for having a great quality of life, good schools and enjoyable living conditions (source).
The three most populated cities in New Hampshire, based on the 2006 US Census estimates:
These cities have two common population trends that seem to be driving up home prices. Each of these cities has seen double-digit percentage growth in their populations, and all have also seen an influx of people from outside the New England area who are taking advantage of one of the nation's stronger job markets. This strength comes from an increase in investment from the health care and insurance industries. As a result, New Hampshire's home prices have stayed well above the national median home price.
New Hampshire's fastest growing cities:
According to the United States Census an estimated 1,334,795 people live in the state of New Hampshire. The state has 8,952.65 mi² of land area, which gave it a population density of 149.09 per mi². Here is a list of cities, towns & Census Designated Places with more than 4,000 residents, with their estimated population as of June 2016 & the 2010 United States Census. For cities & towns with populations below 5,000 and Census Designated Places (CDP) where there was no population estimate available for 2016 the 2011-2015 American Community Survey 5-Year Estimates data was used.
All table columns are sortable. Click on the column headers to sort by that column. Click again to sort low to high. Cities with higher levels of population growth typically see the increased demand drive faster real estate price appreciation.
|Rank||Geography||County||2016 Pop||2010 Pop||Change||% △||Land mi²||Pop Den mi²|
|South Hooksett CDP||Merrimack||5,825||5,418||407||7.51%||5.31||1,096.99|
Annual Estimates of the Resident Population: April 1, 2010 to July 1, 2016
Source: U.S. Census Bureau, Population Division
Release Date: May 2017.
As of 2017 the conforming loan limit across the United States is set to $424,100, with a ceiling of 150% that amount in areas where median home values are higher. High local affordability makes the $424,100 ceiling apply across most the state for single unit homes. Dual unit homes have a limit of $543,000, triple unit homes have a limit of $656,350 & quadruple unit homes have a limit of $815,650. People buying premium properties in the Bost metro area have the following thresholds. People borrowing more money than these thresholds will require a jumbo loan. Jumbo loans typically have a slightly higher rate of interest than conforming mortgages, though spreads vary based on credit market conditions.
|County Name||Metropolitan Designation||1 Unit||2 Unit||3 Unit||4 Unit|
New Hampshire's home loan industry features a typical line of home loan products. These home loan products include:
These home loans are recognized by New Hampshire law as being mortgage instruments. In addition, many mortgages in New Hampshire feature a "Power of Sale" clause that makes it easier to foreclose on defaulted properties. Finally, New Hampshire also recognizes mortgage instruments as liens on real property. This recognition allows non- judicial foreclosure procedures to happen.
USDA loans can help people with low incomes in rural parts of the state qualify for a subsidized low-interest loan.
Homeowner's insurance policies typically do not cover flooding. Most of the state of New Hampshire has a very low to moderate risk of flooding. Here is county-by-county classification.
Home buyers with mortgages in high-risk areas are required to buy flood insurance. Most flood insurance policies are sold by the United States federal government through The National Flood Insurance Program. Under-priced flood insurance in high-risk areas act as a subsidy to wealthy homeowners.
The NFIP does not charge nearly enough to cover the expected costs of its liabilities. The assessments are not sufficient to build any buffer to cover an extraordinary year, such as what occurred with Hurricane Katrina in 2005 or Hurricane Sandy in 2012. Because homeowners dont incur the full cost of building in a flood zone we end up with more houses there than if homeowners incurred the full cost of the flood risk, which exacerbates the governments costs in the next disaster.
Homeowners who live in lower risk areas & are not required to purchase flood insurance heavily cross-subsidize homeowners who are in areas where floods are more common.
Most of the state has a very low eathquake risk. The following counties have a low earthquake risk: Belknap, Carroll, Essex, Grafton, Merrimack, Rockingham & Strafford.
Standard rental and homeowner insurance policies typically do not cover earthquake damage, though they usually cover losses caused by fires which resulted from an earthquake. You can supplement your homeowner's insurance with an earthquake policy.
Hail damage is not uncommon across the state. Damage from hail is typically covered by home insurance policies.
Most mortgages in New Hampshire also have full recourse privileges. Lenders may attempt to recover a deficiency judgment under Chapter XLVIII, Chapter 479 of New Hampshire's Civil Code. They have 30 days from the time that they must record the home's sale to do so. (Source: ibid.)
New Hampshire recognizes both judicial and non-judicial foreclosure procedures. However, the vast majority of foreclosure procedures that are conducted in New Hampshire are non-judicial foreclosures.
Borrowers may in some instances attempt to redeem their properties. If a home is foreclosed upon using a judicial foreclosure procedure, the borrower may attempt to redeem a property. On the other hand, a borrower may not attempt to redeem a property if any of the three non-judicial foreclosure procedures described below are used.
Here is a brief review of the foreclosure processes that are used in New Hampshire:
The judicial foreclosure process works like this:
New Hampshire's three non-judicial foreclosure procedures:
Non-judicial foreclosures occur in New Hampshire if and only if a Power of Sale clause exists in the language of the mortgage. If such language does exist, a non-judicial foreclosure may occur using one of these three procedures:
New Hampshire also has three unique methods that can be used to conduct a non-judicial foreclosure:
Entry under process:
A Lender may foreclose on a property by entering the property under process of law and maintaining physical possession of the property for one full year. A New Hampshire lender may also foreclose on a property through a method called "Entry and Publication." Here is how it is done:
Finally, New Hampshire lenders may also foreclose through a process known as "Possession and Publication."
Here is how that process works: