Rising Foreclosures in NH: Financial Assistance Available for Homeowners

In the aftermath of the COVID-19 pandemic, New Hampshire witnessed a decline in foreclosures—thanks largely to federal programs that placed a moratorium on foreclosures and offered forbearance options for homeowners. But as these initiatives came to an end last year, the Granite State is now experiencing a surge in foreclosure rates. From mid-2021 to mid-2023, foreclosure filings shot up by a staggering 149.72%, as revealed by a July 13 report from ATTOM, a national property data analytics firm. Most of this surge happened over the past year, painting a concerning picture of housing stability in the state.

"The writing was on the wall. Government programs couldn't last forever, and eventually, homeowners would have to face the music," said Stephanie Bray, a legal expert at New Hampshire Legal Assistance and the head of their Foreclosure Relief Project. While rental evictions soared quickly after rental assistance aid became unavailable in 2022, Bray explained that foreclosures have a longer processing timeframe. This means that we’re just beginning to see the effects of the cessation of federal aid.

However, advocates stress that these foreclosures aren’t set in stone. New Hampshire continues to open its Housing Assistance Fund to applicants, a program that offers substantial financial aid for struggling homeowners to cover mortgage payments, property taxes, and utilities among other needs. Bray and her team are actively helping families navigate the application process. “We’re the ones standing guard, buying time for homeowners to receive the aid they need to keep their homes,” she added.

While financial experts like Ben Frost, the Deputy Executive Officer at New Hampshire Housing, believe the current increase isn’t particularly alarming—especially when compared to the national landscape—they acknowledge that each foreclosure is a personal tragedy. In a state where both rental and housing markets are already tight, losing a home could have dire consequences. “Even one foreclosure is one too many. In an environment where housing options are limited, losing your home is more than a statistic; it’s a life-altering event,” Frost noted.

Selling a house, which is often seen as a last-ditch effort to avoid foreclosure, is also becoming increasingly challenging due to the same economic conditions. The situation is further exacerbated by a new trend: More private investors are acquiring homes through foreclosures, often aiming for a quick resale, unlike traditional banks. This makes the potential for eviction higher.

This new dynamic has led legal advocates like Bray to intensify their efforts to connect struggling families with available aid, building on the lessons learned during the wave of foreclosures following the Great Recession in 2012-2013. Back then, loan modification was a key strategy. Now, Bray says, homeowners have more than one avenue for assistance, thanks to the Homeowners Assistance Fund, which could offer thousands in financial aid.

The eligibility for this fund is quite inclusive. To qualify, applicants must show some financial impact due to the COVID-19 pandemic, a criterion that Bray believes many more people meet than they might initially think. “Whether you’ve lost a spouse to the pandemic, had your industry disrupted, or are struggling with pandemic-induced inflation, you could be eligible for aid,” she encouraged.

Frost concurs, urging homeowners to cast self-doubt aside and apply for the assistance they might desperately need. “If you don’t apply, you’ll never know. Better to be turned down than to miss the chance to save your home,” he said.