New Hampshire Tax Foreclosure
Prevention

New Hampshire provides a robust legal framework for the recovery of surplus funds from the sale of tax-deeded property. Under RSA 80:88, municipalities that sell property acquired by tax deed must limit their recovery to back taxes, interest, costs, and penalties. Any excess proceeds must be paid either directly to the former owner (in simple cases) or deposited with the superior court through a bill of interpleader when there are multiple lienholders. This statute, one of the more protective in the country, ensures that municipalities cannot profit from tax deed sales at the expense of former property owners. Surplus funds held by courts or government agencies are presumed abandoned after three years under RSA 471-C:15. This whitepaper provides a comprehensive guide to surplus fund recovery in New Hampshire. Note: This guide reflects information current as of April 2026. Tax foreclosure laws are actively evolving following the landmark Tyler v. Hennepin County Supreme Court decision (2023). Always verify current statutes and consult with a licensed attorney before taking action.

New Hampshire uses a tax deed system for collecting delinquent property taxes. The process is governed by RSA Chapter 80 and works as follows: 1. Property taxes become delinquent if not paid by the statutory deadline. 2. The municipality may take the property by tax deed after proper notice to the property owner. 3. Once the tax deed is executed, the municipality holds the property. 4. The municipality may sell the property after following proper procedures. 5. Any proceeds from the sale in excess of the municipality's entitled recovery must be distributed to the former owner or paid into court. New Hampshire's system is notable for the protections it affords former property owners. Under RSA 80:88, the municipality's recovery from the sale of tax-deeded property is explicitly limited to back taxes, interest, costs, and penalties. This means the municipality cannot retain surplus funds from the sale. The process involves the superior court when there are multiple interested parties (former owners and lienholders), ensuring judicial oversight of the surplus distribution. When the situation is simple — one owner, no lienholders — the municipality can pay the surplus directly without court involvement.

Surplus funds in New Hampshire are the excess proceeds from the sale of tax-deeded property above the municipality's permitted recovery (back taxes, interest, costs, and penalties as defined in RSA 80:90). Under RSA 80:88, the distribution of surplus depends on the complexity of the ownership and lien situation: Simple Cases (RSA 80:88, III): If at the time of the tax deed execution there were no record lienholders and only one record owner or joint owners who are easily identified and located, the excess proceeds are paid directly to the former owner(s) without a court proceeding. Complex Cases (RSA 80:88, II): If there are multiple interested parties, within 60 days of settlement by the purchaser, the municipality must: - File a bill of interpleader with the superior court for the county where the property is located - Name the former owner(s) and all persons with recorded interests as defendants - Pay all excess proceeds to the court - The municipality may retain reasonable costs and attorneys' fees for preparing and filing the petition - The court issues necessary notices and distributes the funds based on ownership and lienholder interests at the time of the tax deed Importantly, the municipality has a continuing interest in the funds, and in default of valid claims by other parties, the funds become the property of the municipality.

The key statutes governing surplus funds in New Hampshire are: 1. RSA 80:88 — Distribution of Proceeds From the Sale of Tax-Deeded Property: The primary surplus statute. Key provisions: - Paragraph I: Municipality's recovery limited to back taxes, interest, costs, and penalty (as defined in RSA 80:90) - Paragraph II: Requires interpleader filing with superior court within 60 days of settlement when lienholders or complex ownership exists. Municipality retains costs and attorney's fees for the filing. - Paragraph III: Direct payment to former owner when simple ownership and no lienholders - The court determines disposition based on ownership and lienholder interests at the time of the tax deed - Municipality has continuing interest; funds default to municipality if no valid claims are made 2. RSA 471-C:15 — Intangible Property Held by Courts and Public Agencies: "Intangible property held for the owner by a court, state or other government, governmental subdivision or agency, public corporation, or public authority which remains unclaimed by the owner for more than 3 years after becoming payable or distributable is presumed abandoned." 3. RSA 471-C:2 — Property Presumed Abandoned: General abandonment statute. Paragraph I provides that all intangible property held in the ordinary course of business that remains unclaimed for more than 5 years is presumed abandoned. However, the 3-year period under RSA 471-C:15 applies specifically to court and government-held property. 4. RSA 80:90 — Definitions: Defines the terms used in RSA 80:88, including what constitutes back taxes, interest, costs, and penalties. In Tyler v. Hennepin County (2023), the U.S. Supreme Court ruled unanimously that governments cannot keep surplus proceeds from tax sales beyond what is owed, finding this violates the Takings Clause of the Fifth Amendment. This landmark ruling has strengthened property owners' rights to surplus funds nationwide.

The claim filing process in New Hampshire depends on whether the case is simple or complex: Simple Cases (Single Owner, No Lienholders): 1. The municipality should directly pay you the excess proceeds under RSA 80:88, III. 2. If you have not received payment, contact the municipality's tax collector or selectmen's office. 3. Provide proof of identity and that you were the owner at the time of the tax deed. 4. Request payment of the excess. Complex Cases (Multiple Parties): 1. The municipality files a bill of interpleader with the superior court within 60 days of the property sale settlement. 2. You will be named as a defendant in the interpleader action and should receive notice. 3. File your claim with the superior court, including: - Proof of identity - Documentation of your ownership or interest at the time of the tax deed - Any lien releases or satisfaction documents 4. Attend any court hearings as scheduled. 5. The court will determine the distribution of funds based on interests at the time of the tax deed. If the Municipality Has Not Filed an Interpleader: 1. If the municipality has not fulfilled its obligation to file, contact the selectmen's office or town counsel. 2. You may need to petition the court yourself or seek legal assistance to compel the municipality to comply with RSA 80:88. If Funds Are Presumed Abandoned: 1. If more than three years have passed, check with the New Hampshire Treasury's unclaimed property division. 2. File a claim through the state's unclaimed property process.

Key deadlines for surplus fund recovery in New Hampshire: - 60-Day Interpleader Requirement: The municipality must file a bill of interpleader with the superior court within 60 days of settlement by the purchaser (RSA 80:88, II(a)). This is the municipality's deadline, not the claimant's, but it is important to know because it triggers the court proceeding. - Three-Year Abandonment Period (Court-Held Funds): Under RSA 471-C:15, property held by a court or government agency is presumed abandoned after three years. This applies to surplus deposited with the court through interpleader proceedings. - Municipality's Continuing Interest: If no valid claims are made, the funds default to the municipality under RSA 80:88, II(d). The exact timeline for this is determined by the court. - Five-Year General Abandonment: Under RSA 471-C:2, I, the general abandonment period is five years, but the three-year period under RSA 471-C:15 specifically applies to court and government-held property. The three-year window is the most critical deadline for claimants. However, because the municipality retains a continuing interest in the funds, it is possible that funds could default to the municipality even before the three-year abandonment period if no claims are filed in the court proceeding.

AuctionBlock.org is a mission-driven company that helps former property owners recover surplus funds from tax deed sales for a flat $2,000 fee upon successful recovery. New Hampshire's statutory framework is among the most protective of former owners, and we are here to help you take full advantage of it. Our free services for New Hampshire residents include: - Free Surplus Identification: We research municipal records to determine whether your former property has been sold and whether excess proceeds exist. - Municipal Communication: We help you communicate with the municipality to assert your rights under RSA 80:88, whether for a direct payment in simple cases or participation in an interpleader proceeding. - Court Process Support: For complex cases involving interpleader filings, we help you understand the court process, prepare your claim, and assemble documentation. - Documentation Assistance: We help gather proof of ownership, identity, and interest to support your claim in both administrative and judicial proceedings. - Deadline Tracking: We monitor the three-year abandonment deadline under RSA 471-C:15 and the municipality's 60-day interpleader filing requirement. - Legal Referrals: For cases requiring legal representation in superior court, we connect you with pro bono or low-cost legal services in New Hampshire. - Education: We explain your rights under RSA 80:88 and help you understand exactly what you are entitled to. New Hampshire law is on your side when it comes to surplus funds. The municipality is not allowed to keep the excess from selling your property. Contact AuctionBlock.org today at auctionblock.org to get started. Our service is completely free — because recovering what is rightfully yours should never cost you anything.