New Mexico Foreclosure Laws
Judicial Foreclosure Available: Yes
Non-Judicial Foreclosure Available: Only for commercial mortgages worth over $500,000
Security Instruments: Mortgage
Right of Redemption Period: 1-9 Months
Deficiency Judgments Allowed: Yes
Time Frame: 120 Days
Public Notice: Complaint
New Mexico is a lien theory state, which means that a borrower’s property serves as security for their loan. A title in New Mexico is secured by a document called a mortgage. If the borrower does not pay their mortgage on time or defaults completely, they may have their property foreclosed. New Mexico foreclosure law only allows for judicial foreclosure processes for residential homes, however, under the “Deed of Trust Act,” non-judicial foreclosure methods may be used if the property is a commercial property worth over $500,000.
The state has a statutory right of redemption, allowing a borrower whose home has been foreclosed to reclaim the property within nine (9) months of the sale. The borrower must pay the default entirely along with any additional costs and interest at a 10 % rate. Lenders in New Mexico may seek a deficiency judgment in the event that a foreclosure is sold at auction for less than what was owed on it. The borrower will be responsible for the difference if the deficiency judgment is granted.
Types of Foreclosures Allowed in New Jersey
For residential properties, New Mexico foreclosure law allows for only judicial foreclosure methods. This type of foreclosure, also known as foreclosure by judicial sale, involves selling the defaulted property under court supervision. In order for a judicial foreclosure to be possible, no power of sale clause may be present in the loan documents.
The lender must sue the borrower and the court will determine the amount of the borrower’s debt and allot them a short period of time to satisfy their default. If the borrower pays off the loan, the will retain their property. If not, then the court will issue a notice of sale.
The notice must contain information about the property as well as the date, time and place of the sale. The sale must take place at least thirty (30) days after the notice of sale has been issued. The county sheriff’s office presiding over the county where the property is located will be responsible for conducting the sale. Whoever bids the highest at the auction will claim the property.
If the borrower wishes to reclaim their property, they have up to nine (9) months from the sale date to pay the amount for the highest bid at the auction in addition to any costs and interest.
Hiring a Foreclosure Lawyer in New Mexico
Due to the country’s current economic situation, many homeowners that were previously able to make their mortgage payments on time are now struggling with debt. Many borrowers have experienced pay cuts at work or have lost their jobs entirely. They may have fallen behind on payments or defaulted altogether. Once the borrower defaults, foreclosure is imminent. However, there is a way to stop the repossession of your property. If you live in New Mexico and have already received a notice of foreclosure or are struggling with your mortgage payments, contact a skilled New Mexico foreclosure lawyer right away to file a claim and protect your rights.
When you solicit the help of a leading foreclosure attorney in New Mexico, you can rest assured that your case will end with the best possible outcome. Foreclosure lawyers commit themselves to your needs and do whatever it takes to make sure you don’t lost your property. Your paralegal will review your current financial situation and devise a plan of action to present to your lender in lieu of foreclosure. Your foreclosure attorney might suggest mortgage modification, short sale, refinancing or even a temporary halt in payments as an alternative to foreclosure. Since the process of filing for foreclosure actually costs the lenders money, if your paralegal comes up with an adequate plan, chances are in your favor that your lender will accept your paralegal’s proposal.
Whatever your reason for defaulting on your mortgage, be it job loss, pay cuts or medical issues, you have rights as a homeowner in New Jersey and your foreclosure lawyer will make sure they are upheld. Turn to an acclaimed team of foreclosure attorneys in New Mexico today to discuss your options and file a claim. With a skilled foreclosure lawyer on your side, you can rest easy knowing that your home will be protected from repossession.