Foreclosure & Alternatives Law
In New Mexico, the reality of foreclosure is too real. Being financially responsible is important but if your other bills are so expensive that they prevent you from making your mortgage payments on time and regularly, it may be time to ask a professional to assist you. Foreclosure can affect not only you, but also your spouse and children. Being up-to-date on the foreclosure laws of your state is important.
In New Mexico, a mortgage is produced by the lien theory, in that the property acts as security for the loan that you procure. The District Court in the county in which the property is located is the deciding authority. When a complaint is filed with this court a “lis pendens” is filed as well. This is a recorded document that provides public notice that the property is foreclosed upon.
Most states allow for not only a judicial foreclosure, but a non-judicial foreclosure as well. Not in New Mexico. In this state, there is only the judicial foreclosure method. In brief, a non-judicial foreclosure means that the foreclosure in listed in a section of the mortgage document that allows to lender, after having given ample notice, to sell the property. Non-judicial foreclosure action is only available to the lender for commercial and business properties that have a value of over $500,000.
In a judicial foreclosure, the court gives a decree that the total amount the owner/borrower owes is due and the debt is payable in a fairly short amount of time. If and when the borrower fails to meet this obligation in the timeframe allowed by the judge, the court will, at this time, issue a notice of sale for the property in question.
When the notice of sale is authorized by the court, a complete and legal description of the property that will be auctioned off must be given. The description must include the location, time and date of the foreclosure sale so that all buyers are made aware and can attend the sale. The notice of sale must be posted 30 days or more before the actual sale takes place. Since this will be an auction, the highest bidder will be awarded the property.
It can take as little as 120 days and as long as 180 days for your foreclosure to be finalized, as long as the foreclosure is uncontested. It can take much lionger if you contest the foreclosure, seek a delay and adjournment of the proceedings or file for bankruptcy.
Bankruptcy filing can be of help if you want to keep the property. If your other debt makes it impossible to pay your mortgage, the foreclosure can be set aside for a while during the bankruptcy process. During this time you can reduce your other debt and begin paying your mortgage again. You need to know that bankruptcy itself does not allow you to make your mortgage go away. If you do keep your home, you need to be prepared to make your monthly mortgage payments.
Generally, the original owner/borrower has up to nine months to pay the amount due and redeem the property or home from the auction buyer. The amount due is the bidder's amount, court costs and interest.
If you are in the process of being foreclosed on, you may want to contact an attorney who knows the specific law of New Mexico and can guide you through this trying process and can help you keep your home if that is what your goal is. He or she can also help you get out from under your mortgage and rid yourself of the monthly payment while still keeping your credit rating intact.