Foreclosure in New Mexico
To fully understand the Short Sale Process it is important to know the potential process of foreclosure. These answer's below will help you to understand the difficulties and obstacles in the short sale process.
How are New Mexico mortgages foreclosed?
In New Mexico, the lenders go to court in what is known as ajudicial foreclosure proceeding where the court must issue a final judgment of foreclosure. The property is then sold as part of a publicly noticed sale. The court with jurisdiction over a foreclosure is known as the District Court in the county in which the property is located. A complaint is filed in this court along with what is known alis pendens. A lis pendens is a recorded document that provides public notice that the property is being foreclosed upon.
What are the legal instruments that establish an New Mexico mortgage?
The documents are known as themortgage,note, and in a commercial transaction, asecurity agreement. Sometimes the mortgage document is combined with the security agreement. Amortgage is filed to evidence the underlying debt and terms of repayment, which is set forth in thenote.
How long does it take to foreclose a property in New Mexico?
Depending on the court schedule, it usually takes approximately 120-180 days to effectuate an uncontested foreclosure. This process may be delayed if the borrower contests the action, seeks delays and adjournments of hearings, or files forbankruptcy. A notice foreclosure sale must be advertised at least four (4) weeks in advance of any sale and sales usually take four (4) months after final judgment for foreclosure is granted. The date of sale must be at least 30 days after thenotice of sale is issued. The Sheriff conducts and appraisal of the property to be sold and no sale can be less than 2/3rds of the appraised value of the property.
Is there a right of redemption in New Mexico?
New Mexico has astatutory right of redemption, which would allow a party whose property has been foreclosed to reclaim that property within nine (9) months after the sale by making payment in full of the sum of the unpaid loan plus costs, taxes and interest at the rate of 10%.
Are deficiency judgments permitted in New Mexico?
Yes. Adeficiency judgment may be obtained when a property in foreclosure is sold at a public sale for less than the loan amount which the underlying mortgage secures. There is a specific provision for deficiency judgments as part ofnon-judicial foreclosures with the exception that no deficiency judgment is permitted in the case of a sale related to low income property. This means that the borrower still owes thelender for the difference between what the property sold for at auction and the amount of the original loan. Deficiency judgments are not
What statutes govern New Mexico foreclosures?
The laws that govern New Mexico foreclosures are found in New Mexico Statutes Annotated (1978); Chapter 48, Articles 48-7-1 to 48-7-24 and Deeds of Trust are governed by Chapter 48, Articles 48-10-1 to 48-10-21.
Source http://www.foreclosure.com/statelaw_NM.html
Resources
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