Summary of New Mexico's Foreclosure Laws

If you are facing foreclosure in New Mexico, it’s important to understand some of the basics, including:

the most common type of foreclosure procedure (judicial v. nonjudicial) used in New Mexico
how much time you have to respond
your rights and protections in the process, and
what happens afterwards (for example, whether you’ll be liable for a deficiency judgment).

Below we have outlined some of the most important features of New Mexico foreclosure law. Keep in mind that this is just a summary; we’ve included statute citations so you can get more details from the laws themselves. And be sure to check out Nolo’s extensive Foreclosure section, where you can find information about all aspects of foreclosure, definitions of foreclosure terms (like redemption and reinstatement), and options to avoid foreclosure.

Topic	State Rule
Most common type of foreclosure process	Judicial, but nonjudicial foreclosures are on the rise
Time to respond	Judicial: Homeowner has 20 to 30 days to respond after being served with summons and complaint. After the court issues a foreclosure judgment, sale may not occur for 30 days. Foreclosing party must publish notice of sale for four consecutive weeks before sale in a newspaper printed in the county (or if there is none, then in the official newspaper for the county) and also post notices in six of the most public places in the county. Nonjudicial: 90 days after foreclosing party records notice of sale
Reinstatement of loan before sale	Judicial: Homeowner must be given a 30-day opportunity to reinstate before filing of complaint. Homeowner may also reinstate any time before foreclosure sale. Nonjudicial: Not available
Redemption after sale	Judicial: Available after judgment and before sale. Available for nine months after sale if additional costs and fees are paid plus 10% interest. Nonjudicial: Available for nine months after sale unless deed of trust provides for shorter period.
Special protections for foreclosures involving high-cost mortgages	Assignees of high-cost loans may be held responsible for acts of lenders and mortgage originators, and violations may be used to defend against the foreclosure (see Ch. 7). Home Loan Protection Act, N.M. Stat. Ann. §§ 58-21A-1 to 58-21A-14
Special state protections for service members	N.M. Stat. Ann. § 20-4-7.1
Deficiency judgments	Judicial: Allowed Nonjudicial: May be obtained by filing a separate lawsuit; may not be recovered against a low-income household.
Cash exempted in bankruptcy	About $12,725 for one person, $25,450 for a married couple under federal bankruptcy exemptions. Up to $5,500 under state bankruptcy exemptions.
Notice to leave after house is sold	New owner must give the former owner a three-day notice to quit (leave) before filing an eviction lawsuit, to which former owner has three to ten days to respond.
Foreclosure statutes	N.M. Stat. Ann. §§ 48-7-1 to 48-7-24, 39-5-1 to 39-5-23 (judicial); 48-10-1 to 48-10-21 (nonjudicial)

Summary of New Mexico's Foreclosure Laws

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