New Hampshire Used How to buy pre-foreclosure and bank-owned real estate

New Hampshire State law, legal procedures - basic

New Hampshire State is operated as the state of title theory where ownership of real estate is in credit until payment of the falling loan is fully incurred. Foreclosures are made in various ways and the typical process is about 60-70 days. NH needs to be announced on the 24th day of sale and there is no right to redemption and deficiency. Jurisdiction is permitted.

In New Hampshire, jurisdiction foreclosure is similar to strict foreclosure in other New England states. The lender must file a complaint against the borrower and obtain a court judgment from the county court. If the court finds a borrower by default, the borrower will provide time for debt repayment. If the borrower does not pay within the permitted period, the court orders the sale of property.

Non-judicial foreclosures are only made when the pledge to sell exists in trust / mortgage acts. This case pre-approves the sale of real estate in order to pay the loan balance at purchaser's default incidence. In such cases, the lender or its agent (commonly referred to as the trustee) is authorized to sell the property.

Always seek advice from a lawyer who is appropriate and a lawyer familiar with the New Hampshire state mortgage law. Especially especially when you buy pre-foreclosure. The information provided on this website is not legal advice.

Bank ownership, REO (property ownership), and foreclosure are terms that are commonly used to denote property owned by a lender (financial institution, usually a bank) after a sale that was unsuccessful at foreclosure auction. Typically, lenders resell real estate directly through real estate agents by sale or market. Because purchasers are motivated to actively raise prices to quickly dispose of assets and reflect market conditions, we may benefit from purchasing these real estate.

Purchase at foreclosure auction

Prior to the auction, bidders will announce the requirements of the bidding. Purchasing at foreclosure auctions is a "dangerous" transaction for most consumers, especially initial home buyers, and in most cases it is preferable to purchase from the lender after the auction. Consumers do not have proper access to property to judge "defects of unknown material". High risk items include a corrupted purification system, a contaminated well, or a house with a leaky roof. If the auction bid is approved, you also need to be aware of all the mortgages and responsibilities relating to property.

Sales of foreclosure auctions begin with minimum bids including loan balance, accrued interest, attorney fees, and costs related to foreclosure procedures. In most cases, outstanding mortgage balances, mortgages, etc. exceed the value of real estate. As a result, the first mortgage is the only bidder and the title returns to this lender. These properties are called REO (Real Estate Owned) or bank owned properties. If you are a winning bidder, you may receive property as "as is" and the original owner or tenant may live in that property. There may also be other mortgages for real estate.

REO (bank owned) real estate

After the bank (lender) owns real estate, it alleviates items owed by former borrowers, such as real estate taxes, homeowner's association fees, contractor's security interests. The financial institution will contact the IRS to cancel the tax treaty on property. If the current owner lives in real estate, it is usually kicked out. For potential buyers, repair and maintenance are often carried out to make the property more marketable. However, the lender can discount the real estate and sell it "as is".

The bank wants to dispose of assets as soon as possible, not as an investor or real estate manager of foreclosed real estate. Most lenders list their properties to local real estate agents engaged in the marketing and management of these assets.

When a lender lists real estate to a real estate agent, I do not like the disclosure statement, I understand that I must obey Federal law and state law. In most cases, they can not declare because they have not known real estate (item of disclosure statement) and never occupied real estate. Although some banks may provide incentive finance to REOs, in most cases this will only apply to those that were in a very bad state or that are difficult to raise funds elsewhere. Financial institutions usually sell such assets "as is". However, if a buyer finds an unknown material defect, it still has the opportunity to negotiate the inspection of the house.

If a buyer finds a problem that you do not expect or a problem that you do not repair, you can cancel the transaction (if you included an unexpected incident in your home examination as part of applying for a purchase contract). Time is money to the lender. As a seller, when they try to renegotiate the contract over trivial items revealed before the negotiations, negotiate repair of the property that will not benefit the buyer, or negotiate repair of the contract

Bank owned property is not always the best value for consumers. "Foreclosure" is an old myth that it is a bargain. As a buyer, you need to evaluate the entire market and compare all the properties of the NH MLS meeting with the residential needs and price zones. However, investors are using "confused" real estate discounted with the idea of ​​"flipping" or reselling real estate after being improved.

Make an offer

Before making an offer, please contact the distributor to the listing agent and ask the seller or a general question.

1. Is there an inspection report?
2. Is the bank ongoing?
3. Is there a special form required by the lender?
4. Has the bank decided on the timeline for closing the property?
5. How does the agency offer offers?

Offers are usually sent to the bank by e-mail or fax, and the listing agency may request original. There is no official announcement other than the discussion between the lender and the listed agent. Be careful: nothing happens in the evening and weekend (banks are closed). Because the typical timeline does not apply, the negotiation process becomes very unpleasant for buyers.

Please check that coupons have the willingness to negotiate with qualified buyers and therefore include "credit" approval to indicate qualification as a buyer. Lenders will sell at "fair" market value and understand that they do not expect "selling" as seen on television.

receiving

Once an offer is negotiated and accepted, a typical inspection, review, and termination process will proceed. As problems of titles that delay closing frequently come up, please make sure that real estate agents and other stakeholders have the necessary documents. Please contact the vendor that provides the utility, arrange a new account with your name, and confirm the final charge to the lender before you exit. Upon closure, we can not receive all keys and garage open or appliance information that we receive in normal transactions.