Summary of New Mexico's Foreclosure Laws

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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)

by: , J.D.

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