Foreclosure Process in New Mexico (NM)Topic: Foreclosure
New Mexico only uses judicial or in court foreclosure. The only exception to this rule is larger commercial and business properties. If these properties are valued at more than half a million dollars, then non-judicial foreclosure can be used.
The usual time frame of a foreclosure in this state is 120 day. To begin the foreclosure process the bank must file a lawsuit called a complaint with the court. The court will then determine the amount to be paid by the home owner. At this time, the court will issue a short amount of time during which this money is to be paid. After this time has expired, and if this amount has not been paid, the court will issue a notice of sale. This notice of sale must have certain items in it. These items are as follows: A legal description of the property, and the date, place and time the sale is to be held. The scheduled sale must not take place any sooner than thirty days following the issuance of the notice of sale.
The property will be sold to highest bidder. If the sale does not move ahead or in other words, if it fails, because no one bid on the property, another sale date can be rescheduled. This new sale date must occur before the return date on the writ of execution issued by the court. The person who loses their home at this auction, has a right of redemption period of nine months. This means that if they can come up with the amount of money equal to the highest or winning bid plus ten percent interest and taxes and attorneys fees, they regain ownership of the home.
New Mexico does allow the bank to pursue a deficiency judgment if they so choose. This means that if the bank believes it can get additional money to make up the difference between what was owed and what the house was sold for, from the home owner, then they can attempt to collect those funds.