New Mexico Supreme Court Adopts New Rules to Help Prevent Foreclosures

New rules will help homeowners in New Mexico avoid foreclosure after federal consumer protections expire.

By , Attorney

The New Mexico Supreme Court has adopted rules to help homeowners facing the potential loss of their homes after the end of federal foreclosure moratoriums. Before filing a foreclosure case, the rules require that:

  • homeowners are given information about loan modification and loss mitigation options
  • homeowners are provided with a list of resources where they can get help to avoid foreclosure, including legal services and possible financial assistance, and
  • the foreclosing party must certify to the court that the required information was provided. (The certification also requires that the foreclosing lender attest that it complied with the Consumer Financial Protection Bureau's rule that provides additional preforeclosure protections to borrowers during the COVID-19 pandemic.)

Also, before a court enters a foreclosure judgment, a certification must be submitted about loss mitigation and loan modification negotiations with the homeowner.

These rules apply to foreclosure cases filed on or after September 7, 2021.

Effective date: September 7, 2021