Redemption and Deficiency Judgments in New Mexico

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.

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.