Question 1

Is New Mexico a judicial or non-judicial foreclosure state?

Accepted Answer

Mainly judicial. The New Mexico Courts describe New Mexico as a judicial foreclosure state: the lender must file a complaint in district court and prove it is entitled to take the property. For a "home loan" under the Home Loan Protection Act (a loan up to the Fannie Mae conforming limit secured by a borrower's principal residence of one to four units, or a manufactured home used as a principal residence, other than a reverse mortgage or bridge loan), the lender must use judicial foreclosure. New Mexico's Deed of Trust Act also allows a trustee's sale under a power of sale in a deed of trust, and a deed of trust may instead be foreclosed in court like a mortgage.

Question 2

What notice is required before a foreclosure sale in New Mexico?

Accepted Answer

For a home loan, before filing a foreclosure the lender must deliver a notice of the right to cure stating the default, the amount needed to cure, a cure date at least 30 days after the notice is delivered, what happens if the default is not cured, and a contact for disputes. Once a case is filed, the homeowner is served with a summons and complaint. Before any sale of land under execution or a foreclosure decree, the time and place of sale and a full description of the property must be published for four weeks before the sale in a newspaper in the county and posted in six public places in the county. For a trustee's sale under a deed of trust, the trustee must publish the notice as for mortgage foreclosures, record it with the county clerk and mail copies to anyone who has recorded a request for notice.

Question 3

How long does foreclosure take in New Mexico?

Accepted Answer

The statutes set these minimum steps rather than an overall timeline: for a home loan, at least 30 days between the notice of right to cure and the cure deadline before a foreclosure can be filed; 30 days for the homeowner to answer the summons and complaint (as described by the New Mexico Courts); and publication of the sale notice for four weeks before a judicial sale. The New Mexico Courts say a foreclosure case can take several months before the court makes a final decision.

Question 4

Can you stop a foreclosure by catching up on payments in New Mexico?

Accepted Answer

Yes, for home loans. The borrower may cure the default by the date in the notice (at least 30 days after delivery) to avoid a foreclosure filing, and the lender must accept partial payments made in response to the notice. Even after the loan is accelerated, the borrower may cure the default and reinstate the loan at any time before title is transferred by foreclosure; the cure puts the borrower back in the same position as if no default had occurred. Fees are limited: no attorney fees for the 30-day notice period, no more than $100 in attorney fees after that period but before a foreclosure is filed, and only reasonable, actually incurred attorney fees after filing.

Question 5

Is there a right of redemption after foreclosure in New Mexico?

Accepted Answer

Yes. After a court-ordered foreclosure sale, the former owner (first) or a junior mortgagee or lienholder may redeem within nine months from the date of sale by paying the buyer the sale price plus 10% annual interest, taxes and certain other payments, or by filing a petition for redemption in the foreclosure case and depositing that amount with the court clerk. The "date of sale" is the date the court order confirming the special master's report is filed. The mortgage may shorten the period to as little as one month, but the court may extend it back up to nine months. After a trustee's sale under a deed of trust, the redemption period is nine months or the shorter period in the deed of trust (not less than one month), running from the date of the trustee's sale.

Question 6

Can the lender come after you for the rest of the loan after foreclosure in New Mexico?

Accepted Answer

After a trustee's sale under a deed of trust, the lender may file a separate lawsuit for a deficiency judgment within six years after the sale; if it does not, the sale proceeds are treated as full satisfaction of the debt. The deficiency is the amount owed (including prior liens) minus the sale price. No deficiency judgment may be sought under a deed of trust securing a residential loan made to a low-income household (income at or below 80% of area median income), and any such deficiency may not be reported to credit reporting agencies. A deed of trust may also bar recovery of any deficiency.

Question 7

Does New Mexico have a foreclosure mediation program?

Accepted Answer

Yes. The New Mexico courts run a Statewide Foreclosure Settlement Program, a court-ordered settlement facilitation program for residential foreclosure cases, based in the Second Judicial District. A neutral settlement facilitator is provided at no cost. While the parties try to settle, the foreclosure case is stayed (paused); if it does not settle, the case returns to litigation. The homeowner must submit the Homeowner Information Form by the deadline, take part in a telephone status conference and complete the lender's loss-mitigation application. The court says most cases in the program end in loan modifications. Contact: 505-841-7626, albdfsp@nmcourts.gov.

Question 8

Can an HOA foreclose on your home in New Mexico?

Accepted Answer

Yes. A homeowner association has a lien on a lot for assessments and for fines from the time they become due, and the lien may be foreclosed in the same way as a mortgage. Recording the declaration perfects the lien. A condominium association has a similar lien on a unit for assessments and fines that may be foreclosed like a mortgage, but the lien is extinguished unless enforcement proceedings begin within three years after the full assessment becomes due. On written request, either type of association must give the owner a statement of unpaid assessments within ten business days.

Question 9

What must a home seller disclose in New Mexico?

Accepted Answer

Before accepting an offer on a residential property, the seller or seller's broker must request from the county assessor an estimate of the next year's property tax levy (using the listed price) and give a copy to the buyer, who acknowledges receipt in writing. By statute, a seller has no duty to disclose that the property was the site of a natural death, a felony crime such as homicide or suicide, or was occupied by someone with HIV/AIDS.

Question 10

How do you get your home back after a tax sale in New Mexico?

Accepted Answer

The state (through the Property Tax Division of the Taxation and Revenue Department) may sell real property for delinquent property taxes any time after three years from the date the taxes first became delinquent. The owner is notified by certified mail 20 to 30 days before the sale and can stop it by paying all delinquent taxes, penalties, interest and costs by 5:00 p.m. the day before the sale, or by entering an installment agreement with the department by then. After the sale, the Property Tax Division issues a deed to the buyer; after two years from the sale date, the former owner can no longer bring a lawsuit challenging the conveyance. Any sale money left after costs, penalties, interest and taxes is paid to the former owner.

Question 11

Where can homeowners get free foreclosure help in New Mexico?

Accepted Answer

Housing New Mexico (the New Mexico Mortgage Finance Authority) has a foreclosure prevention page asking its borrowers who are having trouble paying to call 505-843-6882 and submit a financial worksheet for loss mitigation, and links to HUD-approved housing counseling agencies. The courts' Foreclosure Settlement Program can be reached at 505-841-7626, and the New Mexico Courts HelpLine for self-represented people is (855) 268-7804.

Judicial or non-judicial	Mainly judicial. The New Mexico Courts describe New Mexico as a judicial foreclosure state: the lender must file a complaint in district court and prove it is entitled to take the property. For a "home loan" under the Home Loan Protection Act (a loan up to the Fannie Mae conforming limit secured by a borrower's principal residence of one to four units, or a manufactured home used as a principal residence, other than a reverse mortgage or bridge loan), the lender must use judicial foreclosure. New Mexico's Deed of Trust Act also allows a trustee's sale under a power of sale in a deed of trust, and a deed of trust may instead be foreclosed in court like a mortgage. Statute text (official unannotated NMSA): Chapter 58 https://nmonesource.com/nmos/nmsa-unanno/en/18561/1/document.do ; Chapter 48 https://nmonesource.com/nmos/nmsa-unanno/en/18551/1/document.do Source: NMSA 1978, § 58-21A-3, § 58-21A-6(E); §§ 48-10-10, 48-10-11; New Mexico Courts, Self-Representation: Foreclosure
Required notices	For a home loan, before filing a foreclosure the lender must deliver a notice of the right to cure stating the default, the amount needed to cure, a cure date at least 30 days after the notice is delivered, what happens if the default is not cured, and a contact for disputes. Once a case is filed, the homeowner is served with a summons and complaint. Before any sale of land under execution or a foreclosure decree, the time and place of sale and a full description of the property must be published for four weeks before the sale in a newspaper in the county and posted in six public places in the county. For a trustee's sale under a deed of trust, the trustee must publish the notice as for mortgage foreclosures, record it with the county clerk and mail copies to anyone who has recorded a request for notice. § 39-5-1 is in Chapter 39: https://nmonesource.com/nmos/nmsa-unanno/en/18539/1/document.do Source: NMSA 1978, § 58-21A-6(A); § 39-5-1; §§ 48-10-11, 48-10-12
Time frames set by law	The statutes set these minimum steps rather than an overall timeline: for a home loan, at least 30 days between the notice of right to cure and the cure deadline before a foreclosure can be filed; 30 days for the homeowner to answer the summons and complaint (as described by the New Mexico Courts); and publication of the sale notice for four weeks before a judicial sale. The New Mexico Courts say a foreclosure case can take several months before the court makes a final decision. Source: NMSA 1978, § 58-21A-6(A); § 39-5-1; New Mexico Courts, Self-Representation: Foreclosure
Right to catch up (reinstate)	Yes, for home loans. The borrower may cure the default by the date in the notice (at least 30 days after delivery) to avoid a foreclosure filing, and the lender must accept partial payments made in response to the notice. Even after the loan is accelerated, the borrower may cure the default and reinstate the loan at any time before title is transferred by foreclosure; the cure puts the borrower back in the same position as if no default had occurred. Fees are limited: no attorney fees for the 30-day notice period, no more than $100 in attorney fees after that period but before a foreclosure is filed, and only reasonable, actually incurred attorney fees after filing. Source: NMSA 1978, § 58-21A-6(A)–(D)
Foreclosure mediation	Yes. The New Mexico courts run a Statewide Foreclosure Settlement Program, a court-ordered settlement facilitation program for residential foreclosure cases, based in the Second Judicial District. A neutral settlement facilitator is provided at no cost. While the parties try to settle, the foreclosure case is stayed (paused); if it does not settle, the case returns to litigation. The homeowner must submit the Homeowner Information Form by the deadline, take part in a telephone status conference and complete the lender's loss-mitigation application. The court says most cases in the program end in loan modifications. Contact: 505-841-7626, albdfsp@nmcourts.gov. Orientation: https://seconddistrict.nmcourts.gov/wp-content/uploads/sites/21/2023/11/FY24StatewideFSPorientationPowerpoint.pdf Source: New Mexico Courts, Statewide Foreclosure Settlement Program (Second Judicial District) and FSP orientation materials

HOA liens and foreclosure	Yes. A homeowner association has a lien on a lot for assessments and for fines from the time they become due, and the lien may be foreclosed in the same way as a mortgage. Recording the declaration perfects the lien. A condominium association has a similar lien on a unit for assessments and fines that may be foreclosed like a mortgage, but the lien is extinguished unless enforcement proceedings begin within three years after the full assessment becomes due. On written request, either type of association must give the owner a statement of unpaid assessments within ten business days. Source: NMSA 1978, § 47-16-6 (Homeowner Association Act); § 47-7C-16 (Condominium Act)
Property tax sales	The state (through the Property Tax Division of the Taxation and Revenue Department) may sell real property for delinquent property taxes any time after three years from the date the taxes first became delinquent. The owner is notified by certified mail 20 to 30 days before the sale and can stop it by paying all delinquent taxes, penalties, interest and costs by 5:00 p.m. the day before the sale, or by entering an installment agreement with the department by then. After the sale, the Property Tax Division issues a deed to the buyer; after two years from the sale date, the former owner can no longer bring a lawsuit challenging the conveyance. Any sale money left after costs, penalties, interest and taxes is paid to the former owner. The tax-sale sections reviewed describe paying before the sale; they do not describe a right to redeem after the sale. Source: NMSA 1978, §§ 7-38-65, 7-38-66, 7-38-68, 7-38-70, 7-38-71
Seller disclosure	Before accepting an offer on a residential property, the seller or seller's broker must request from the county assessor an estimate of the next year's property tax levy (using the listed price) and give a copy to the buyer, who acknowledges receipt in writing. By statute, a seller has no duty to disclose that the property was the site of a natural death, a felony crime such as homicide or suicide, or was occupied by someone with HIV/AIDS. A general statewide property condition disclosure form was not found in the statutes reviewed. Source: NMSA 1978, §§ 47-13-2, 47-13-4

New Mexico Foreclosure Laws: Process, Timeline and Your Rights

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After the sale

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