New Mexico Laws

New Mexico foreclosures can only be sought through judicial means. Before beginning the process of foreclosure, it is customary for the lender to issue the homeowner a Notice of Default informing them of the impending foreclosure.

If the homeowner does not rectify the situation in a short amount of time, the lender will file a suit against them in court. The homeowner has thirty days to either pay off the debt or contest the suit. If the court rules that a default has occurred, they will rule in favor of the lender and grant the homeowner a final, shorter period of time in which to pay. If the homeowner still fails to settle the debt, a foreclosure sale will be scheduled for no less than 30 days in advance. The homeowner has the power to stop the foreclosure altogether by paying off the default debt owed at any point before the sale occurs.

The court issues a Notice of Sale to inform the public of the date, terms and locations of the sale, then publishes it in a local newspaper for four consecutive weeks leading up to the sale itself.

One the day of the sale, a court clerk will auction off the homeowner's property to the public. The bidding starts at approximately 80 percent of the property's market value. Once a winning bidder is established, that person receives a deed entitling them to ownership pending a court confirmation. Once a sale is confirmed, the original homeowner may have anywhere from one to nine months to redeem their ownership by paying the full sale price of the home plus any additional interest gathered.

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