Judicial Foreclosure Proposed in New Hampshire
April 1, 2019
Source: New Hampshire General Court (HB 270 information/full text)
The proposed bill would repeal and reenact RSA 479:25 to provide that foreclosure of a mortgage would be by a civil action in the superior court in the county in which the mortgaged premises or any part of it is located. It would also repeal the provisions for power of sale mortgages. As such, all mortgage foreclosures would take place following a civil action in the superior court. The judicial branch has no information on how many actions to foreclose a mortgage will be brought in the superior court pursuant to the proposed version of RSA 479:25. The Judicial Branch does have information on the cost of processing such cases. The New Hampshire Judicial Needs Assessment done by the National Center for State Courts in 2005 classifies mortgage foreclosures as routine equity cases in the superior court. The estimated cost of an average routine equity case in the superior court will be $265 in fiscal year 2020, and $269 in fiscal year 2021. These amounts do not consider the cost of any appeals that may be taken following trial. It should be noted that average case cost estimates for FY 2020 and FY 2021 are based on data that is more than ten years old and does not reflect changes to the courts over that same period of time or the impact these changes may have on processing the various case types.
The Banking Department states this bill would have no fiscal impact on the Department. The Department indicates it would not require additional personnel or resources as a result of this bill and it would not receive any additional revenue.