1 A borrower's right to reacquire property lost due to a foreclosure.
2 A personal judgment against the borrower for the remaining balance on the loan after a foreclosure sale.
New Mexico foreclosure law details
Lenders in the state of New Mexico may foreclose on a mortgage in default using a judicial foreclosure process.
Judicial Foreclosure
A judicial process of foreclosure requires that the lender file a lawsuit and attain a court order to foreclose on a particular property.
A notice of sale must be given at least thirty (30) days prior to the sale date. The notice, containing the date, time and location of sale, as well as a legal description of the property must be published once a week for four (4) consecutive weeks.
The property will then be sold to the highest bidder on the date specified in the notice. However, if the sale fails due to lack of bidding, then the property may be presented again for sale any time prior to the return date on the writ of execution issued by the court.
In most cases, the borrower has up to nine (9) months to redeem the property by paying the amount of the winning foreclosure bid, with interest at ten (10) percent a year, plus taxes and costs.
While unregulated by statute, the lender is allowed to pursue a deficiency judgment.
A lender must file a lawsuit to foreclose, unless the loan is covered by the Deed of Trust Act. Non-judicial foreclosures are only allowed if the loan is covered by the Deed of Trust Act which applies only to business and commercial loans on real estate in excess of $500,000. Furthermore, the borrower must agree to the non-judicial foreclosure in writing, to the deed of trust arrangement.