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 also possible

Notice of the foreclosure

Judicial: Borrower has 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 and also post notices in six of the most public places in the county.

Nonjudicial: Foreclosing party must record notice of sale at least 90 days before the sale date and mail a copy to the borrower within five days of recording. Foreclosing party must also publish notice in a newspaper.

Reinstatement of loan before sale

Borrower must be given a 30-day opportunity to reinstate before the foreclosing party initiates foreclosure. Borrower may also reinstate at any time prior to the time title is transferred by means of foreclosure sale.

Redemption after sale

For both judicial and nonjudicial foreclosures, New Mexico law gives a borrower nine months to redeem the home after a foreclosure sale. However, the terms of the mortgage or deed of trust can reduce the redemption period to not less than one month. (Most mortgages and deeds of trust contain a provision stating that the redemption period will be one month.)

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. Home Loan Protection Act, N.M. Stat. Ann. § 58-21A-11.

Special state protections for service members

The rights, benefits, and protections of the federal Servicemembers Civil Relief Act extended to members of the national guard ordered to state active duty for a period of 30 or more consecutive state duty days or to any federally funded duty performed in an operational role for homeland security. N.M. Stat. Ann. § 20-4-7.1

Deficiency judgments

Judicial: Allowed, but the property cannot be sold for less than two-thirds of its appraised value at the foreclosure sale.

Nonjudicial: May be obtained by filing a separate lawsuit within six years of foreclosure sale; 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 (usually the foreclosing party) can get a writ of assistance to evict the former owner as part of the foreclosure action (judicial foreclosures) or can file a separate lawsuit (nonjudicial foreclosures).

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)

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