 Summary of a New Mexico Foreclosure Documents Needed to Begin Foreclosure 1. A copy of the RECORDED Mortgage Although New Mexico has a trust deed statute, it cannot be used on real estate; that is used for dwelling units (up to four) or for agricultural purposes. Consequently, the normal foreclosure in New Mexico will be judicial. The first step of a judicial foreclosure is to determine who are the other interested parties in the property being foreclosed. This is done by a foreclosure report from a title company. A notice of the foreclosure lawsuit is filed in the real estate records. All interested parties are served with a copy of the summons and complaint. Generally, to serve an interested party means to give to him a copy of the summons and complaint in any manner reasonably calculated, under all of the circumstances, to apprise him of the existence and pendency of the foreclosure lawsuit and to afford him a reasonable opportunity to appear and assert his point of view. Personally serving the party or his agent are the preferred methods of service and permit the court to enter a personal judgment, including a deficiency judgment. Service by mail or publication generally allows the court to order foreclosure, but not a personal judgment, including a deficiency judgment. If any interested party interposes objections to the foreclosure, the court must resolve these objections. These objections sometimes can be resolved by motions to the court, which the court resolves with or without hearings before it. Sometimes, these objections can only be resolved by trial. If no objections are filed by any interested party, the court will enter a judgment of foreclosure approximately forty-five (45) days (60 days if the U.S.A. is a party) after all interested parties have been served. The foreclosure sale is held at the county courthouse. Whether a sale date can be continued is unclear, but if authority is given by the court decree, that would seem sufficient. Notice of the foreclosure sale must be given by publication and posting. After the foreclosure sale, there must be a confirmation hearing. If a deficiency has been bid, an appraisal substantiating same will be vital. The property cannot be sold for less than two- thirds its appraised value. The foreclosing creditor could permit reinstatement up to the confirmation hearing. There is no statutory requirements in this regard. There is a statutory nine-month redemption period for the owner and inferior lienholders after the sale. |
| New Mexico Capital – Santa Fe The Land of Enchantment State Judicial State Bar of New Mexico Foreclosure |
