Claiming Surplus Funds After Foreclosure in New Hampshire: Step-by-Step Guide

Disclaimer: This article is for informational purposes only and does not constitute legal advice. Consult a licensed attorney for guidance on your situation.

Detailed Answer

Under New Hampshire law, when a foreclosure sale yields funds in excess of all liens, costs, and interest, those surplus funds become available for distribution to entitled parties. RSA 479:25 governs the process for claiming these funds. To file a petition for surplus funds, follow these steps:

1. Confirm Eligibility and Identify Your Interest
   • Typically, the former owner or a subordinate lienholder may claim the surplus under RSA 479:25.
   • Review the foreclosure deed, mortgage, and lien instruments to verify your entitlement.
2. Locate the Foreclosure Case Files
   • Visit the county Superior Court registry where the foreclosure was adjudicated.
   • Obtain the case title, docket number, foreclosure judgment date, and sale date.
3. Draft the Petition
   • Title the document “Petition for Distribution of Surplus Funds.”
   • Include:
     • Case details: docket number, parties, judgment date.
     • Property description as shown on the foreclosure deed.
     • Exact amount claimed and the legal basis for entitlement.
4. Attach Supporting Documentation
   • Certified copies of the mortgage, deed, or lien instrument.
   • Proof of payment history or priority position (e.g., recording stamps).
   • Any assignments or releases relevant to your claim.
5. File the Petition with the Court
   • Submit the petition to the Superior Court registry in the county of foreclosure.
   • Pay the applicable filing fee (fees vary by county).
   • Under RSA 479:25, you must file within three years of the foreclosure sale: RSA 479:25.
6. Serve Notice on Interested Parties
   • Serve all parties named in the foreclosure action (e.g., junior lienholders, the municipality).
   • Follow New Hampshire Rules of Civil Procedure, Rule 4, for proper service.
7. Schedule and Attend the Hearing
   • The court will set a hearing date once the petition and notices are filed.
   • Present your evidence, explain your legal basis, and answer any court inquiries.
8. Obtain and Submit the Court’s Order
   • Upon approval, the court issues an order directing the release of surplus funds.
   • Submit the signed order to the county treasurer to receive payment.

Helpful Hints

• Check local court websites for sample petition forms or guidance documents.
• Keep certified copies and originals organized for the hearing.
• Track all deadlines closely—missing the three-year window can forfeit your claim.
• Confirm current filing fees and acceptable payment methods with the court clerk.
• Consider consulting an attorney for complex priority disputes or contested claims.