New Hampshire allows which types of foreclosure when a borrower defaults on a mortgage?
Correct Answer
C) Both judicial foreclosure and non-judicial (power of sale) foreclosure
New Hampshire permits both judicial foreclosure (through the court system) and non-judicial foreclosure (power of sale), with non-judicial being the more commonly used method. The power of sale clause in the mortgage allows the lender to sell the property without court involvement after proper notice requirements are met under RSA Chapter 479.
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Related Topics & Key Terms
Key Terms:
Related Concepts
The debt-to-income ratio (DTI) compares a borrower's monthly debt obligations to their gross monthly income. It is used by lenders to determine how much mortgage a borrower can afford.
In the context of foreclosure, a deed transfers ownership of the foreclosed property to the new owner, typically the buyer at a foreclosure sale.
Discount points are upfront fees paid to a lender at closing to reduce (buy down) the interest rate on a mortgage loan. One point equals 1% of the loan amount and typically reduces the rate by approximately 0.25%.
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