New Mexico foreclosure law

In New Mexico, the non-judicial (out of court) foreclosure process is followed only for commercial properties with values above $500,000. Otherwise, the foreclosure takes place in a judicial (court-directed) manner. The average wait time for a New Mexico judicial foreclosure is 120 days, or about four months.

In a judicial foreclosure, the lender files a lawsuit against the borrower in the court with jurisdiction over the county where the property is located. The court then issues a decree stating the borrower’s total debt and provides a time frame for bringing the mortgage current. If the borrower doesn’t meet the deadline, the court releases a notice of sale and the foreclosure is declared.

The Notice of Sale contains a legal description of the home and the time, date, and place of the sale. The date is set at least 30 days after the court issues the notice. The sale is done via public auction where the home is sold to the highest bidder.

After the sale, the borrower usually has a nine-month Right of Redemption. This allows him to regain possession of his home within the said time by paying the foreclosure sale price, plus interest and associated costs. Lenders can also make a deficiency claim against the borrower if the foreclosure fails to cover the unpaid balance.

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