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New Hampshire · Weigh your options

Can the lender come after you for the rest? Deficiency judgments in New Hampshire

In New Hampshire, a lender can generally sue you for what is still owed after a foreclosure sale, because no state statute bars a deficiency on a home loan. Your main protection comes from court decisions: the lender that sells your home must act in good faith and make every reasonable effort to get a fair price. New Hampshire also has no special short deadline for a deficiency suit that we could find, so a claim may come long after the sale.

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Reviewed against New Hampshire law and official sources on October 12, 2026. General information, not legal advice.

Deficiency rules in New Hampshire, point by point

  • A deficiency is allowed after a power of sale foreclosure

    After the auction

    Most New Hampshire homes are sold under the power of sale in the mortgage, without a court case. We found no New Hampshire statute that limits a shortfall claim after that sale, whether or not you lived in the home or used the loan to buy it.

    RSA 479:25

  • The lender must try to get a fair price

    At the sale

    New Hampshire courts hold that a foreclosing lender owes you a duty of good faith and due diligence and must exert every reasonable effort to obtain a fair and reasonable price under the circumstances. A sale that breaks this duty can be challenged, though courts have upheld sales at well under assessed value.

    Murphy v. Financial Development Corp., 126 N.H. 536 (1985)

  • No short statutory deadline found

    Time limits are unclear; act on any letter right away

    New Hampshire law lets a lender sue on a mortgage note as long as it could sue on the mortgage, and the general limit for other personal actions is 3 years. We found no New Hampshire law that sets a special deadline for a deficiency suit after foreclosure, so do not assume a claim is too old without advice.

    RSA 508:6; RSA 508:4

  • Short sale or deed in lieu: the written deal controls

    Before you sign

    We found no New Hampshire statute that ends your liability after a short sale or deed in lieu. Ask the lender to state in writing that it waives any remaining balance, and read the agreement closely before you sign.

  • How a judgment can be collected

    Judgments can be enforced for up to 20 years

    A suit on a judgment can be brought within 20 years. After a New Hampshire court judgment, a creditor can use trustee process on wages you earned before the writ was served, but 50 times the federal minimum hourly wage for each week is protected.

    RSA 508:5; RSA 512:21, II

  • If you get a letter or lawsuit about a balance

    By the deadline on the court papers

    Ask for an itemized statement showing the debt, the sale price and the sale costs. Answer any lawsuit on time and contact 603 Legal Aid or New Hampshire Legal Assistance, especially if the sale price looked very low compared to what the home was worth.

The short answer in New Hampshire

Can the lender come after me for the rest?

Deficiency judgments allowed

We found no New Hampshire statute that stops a lender from collecting a shortfall after a foreclosure sale, so you should not assume the debt ends with the sale. New Hampshire courts hold that a lender selling your home owes you a duty of good faith and due diligence, which means making every reasonable effort to get a fair price. If you get a letter or lawsuit about a balance after the sale, contact legal aid quickly.

Murphy v. Financial Development Corp., 126 N.H. 536 (1985)

Common questions in New Hampshire

Can a New Hampshire lender take my paycheck for a foreclosure shortfall?

Only after it gets a court judgment and uses trustee process on your wages. Even then, wages equal to 50 times the federal minimum hourly wage for each week stay protected and must be paid to you on payday.

Does a low auction price in New Hampshire cancel the shortfall?

Not by itself. New Hampshire courts look at whether the lender made every reasonable effort to get a fair price, and they have upheld sales at a fraction of the assessed value. Proof of bad faith or poor notice of the sale can help, so bring the sale notice and any appraisal to a lawyer.

Does the New Hampshire good faith rule apply to my loan servicer?

Federal court decisions applying New Hampshire law say the duty belongs to the foreclosing lender, not to a servicer acting for it. Any claim about the sale price is usually brought against the lender that held the mortgage.

Step by step

More on foreclosure in New Hampshire

Understand the process

What is happening and how much time there is.

Weigh your options

What can stop it, and what happens if it goes ahead.

Get help now

Who to call, and what to do when a sale is scheduled.

Also in New Hampshire

Property tax foreclosure Claim surplus funds Deficiency judgments (this page)Letters you may get

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Sources for this page

  1. RSA 508:4, Personal Actions
  2. RSA 508:5, Specialties
  3. RSA 508:6, Mortgage Notes
  4. RSA 512:21, List of Exemptions from trustee process
  5. RSA 479:25, Sale Under the Power
  6. RSA 479:26, Return; Effect
  7. RSA 479:27, Mortgagee May Buy
  8. RSA 479:18, Redemption After Condition Broken
  9. RSA 479:22, Decree for Sale
  10. RSA Chapter 479 table of contents, Mortgages of Realty
  11. RSA Chapter 479-B, Foreclosure Consultants and Pre-Foreclosure Conveyances
  12. RSA Chapter 540, Actions Against Tenants (including 540:12 and 540:13 as amended by 2026, 308:1)
  13. RSA 397-A:1, Definitions (dwelling)
  14. RSA 72:38-a, Tax Deferral for Elderly and Disabled
  15. New Hampshire Banking Department: Foreclosure Information & Assistance
  16. New Hampshire Banking Department: Foreclosure Information Guide (brochure)
  17. New Hampshire Banking Department: Consumer Complaints
  18. New Hampshire Housing: Resources for Homeowners
  19. New Hampshire Housing: NH Homeowner Assistance Fund Program to Close March 8
  20. U.S. Department of the Treasury: Homeowner Assistance Fund
  21. 603 Legal Aid: Foreclosure Basics
  22. 603 Legal Aid: A Walk Through Foreclosure Eviction
  23. 603 Legal Aid: Mortgage Scams
  24. New Hampshire Legal Assistance
  25. New Hampshire Department of Justice: Consumer Protection & Antitrust Bureau
  26. New Hampshire Department of Justice: Consumer Protection Hotline
  27. New Hampshire Judicial Branch: Complaint to Enjoin Foreclosure Sale (NHJB-2834-Se)
  28. New Hampshire Supreme Court: Bank of New York Mellon v. Dowgiert (2016)
  29. U.S. District Court for the District of New Hampshire: Hynes v. Bank of New York Mellon, 2019 DNH 187 (restating the Murphy and Bascom duty)
  30. New Hampshire Judicial Branch: Landlord/Tenant, District Division
  31. New Hampshire Bar Association: Lawyer Referral Service