New Mexico Foreclosure Law

New Mexico foreclosures law accepts judicial foreclosure only. Non-judicial foreclosure has no acceptance in New Mexico foreclosure law. In New Mexico State timeline of the foreclosure process is 120 days. Foreclosure sale in accordance with New Mexico foreclosure law relay on mortgage only as primary security instruments, the deed of trust has no acceptance in New Mexico foreclosure. New Mexico foreclosure law permits right of redemption. Deficiency Judgments are also allowed by New Mexico foreclosure law.

The foreclosure process in state of New Mexico may be exercised by following judicial foreclosure only on mortgages as primary security instrument in default.

Judicial Foreclosure

The judicial foreclosure process necessitates the filing of a lawsuit by lender to obtain a court order to foreclose on a particular property. The judicial foreclosure process is mostly practiced when mortgage or deed of trust holds the clause “No power of sale”. Power of sale clause authorizes the sale according to the terms n conditions outlined in that clause. The property is auctioned off to the uppermost bidder condition the Court orders to foreclose. However, in judicial foreclosure court facilitate borrower by decreeing the amount of debt n give timeline to pay within. In case borrower fails to do so, after that court issues the notice to sell the property.
•    Notice of sale containing the date, time, place where sale will be held and legal description of the property must be published at least (30) days after the issuance of sale notice in news paper each week for (4) consecutive weeks.
•    Property will be auctioned off to the uppermost bidder, lest nobody qualified the bid auction will be carried out again prior to the time declared by court.
•    Borrower has the opportunity to redeem the property by paying out the bid amount along with cost and interest within the (9) months after sale.
•    Lenders has right of sue to obtain a deficiency judgment.
•    In case loan is covered by the deed of trust, lender may file lawsuit to foreclose the property.
•    In New Mexico non-judicial foreclosure only valid for business and commercial loans valued at over $500,000.