Detailed Answer
Preparing a jointly owned property for sale before a foreclosure hearing in New Hampshire requires careful coordination among co-owners, clear understanding of state statutes, and proactive steps to preserve equity. Below is a step-by-step guide under New Hampshire law.
1. Confirm Ownership Structure
First, determine whether the property is held as tenants in common or joint tenants. In a tenancy in common, each co-owner has an individual, divisible interest. Joint tenancy includes a right of survivorship. Different structures affect your rights to sell or force a sale.
2. Review Mortgage and Lender Communications
Obtain copies of the mortgage, promissory note, and any loan modification applications. Confirm the foreclosure timeline under RSA 479:25 (RSA 479:25), which requires the lender to file a complaint and serve a notice at least 60 days before the hearing.
3. Communicate with Co-Owners
Arrange a meeting or send written notice to all co-owners detailing proposed sale steps, timing, and distribution of proceeds. Document approvals in writing. Unresolved disputes may lead to a partition action under RSA 547:1 (RSA 547:1).
4. Order a Title Search and Address Liens
Hire a title company to identify outstanding liens, unpaid taxes, or judgments. Clear or address these encumbrances to ensure a marketable title. Coordinate payoffs for junior liens before closing.
5. Obtain a Current Appraisal and Repair Estimates
Engage a licensed appraiser to determine fair market value. Obtain contractor bids for necessary repairs. A clean, well-maintained home attracts better offers and can speed up closing.
6. Hire a Real Estate Agent and Prepare Disclosures
Choose an agent experienced with distressed properties. Prepare and complete all state-required disclosures, such as lead paint (for homes built before 1978) and known structural issues. Full disclosure limits post-sale liability.
7. Coordinate with the Lender and Court
If the lender agrees to a short sale, submit a hardship package. Otherwise, inform the lender of the pending private sale and attempt to postpone the foreclosure hearing. If unsuccessful, be prepared to proceed with the court-approved sale process.
8. Close the Sale and Distribute Proceeds
At closing, satisfy the mortgage debt and any junior liens. Distribute net proceeds to co-owners per their ownership percentages or agreement. Retain closing statements and bank records for future reference.
Disclaimer: This article is for informational purposes only and does not constitute legal advice. Consult a qualified New Hampshire attorney to discuss your specific situation.
Helpful Hints
- Start communication early. Delays can shorten your window to sell pre-foreclosure.
- Keep detailed records of all agreements, notices, and disbursements.
- Consider mediation if co-owners disagree on sale terms.
- Monitor court filings online via the New Hampshire Judicial Branch to track your foreclosure case.
- Consult a real estate attorney before signing any lender forbearance or short-sale agreements.