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New Mexico foreclosure law allows for both Non-Judicial and Judicial Foreclosure procedures. However, for a Non-Judicial Foreclosure, the property must be commercial property with a value of $500,000 or higher.
The Judicial Foreclosure process requires the lender to sue the borrower in court to obtain a decree that states the amount of the borrower's debt. The court will give the borrower a set period to cure the default, and if the borrower is unable to satisfy the amount, the court issues an order of sale.
The notice of sale issued by the court must contain the date and time of the sale of the property, as well as a legal description of the property. The date of the sale can not be less than thirty (30) days from the date the notice of sale is issued.
The sheriff of the county in which the property is located conducts the sale.
The borrower has a nine (9) month period after the sale in which he can redeem the property by paying the amount of the high bid at the auction, plus costs and interest.
The lender has the right to sue the borrower for a deficiency judgment if the sale price is not sufficient enough to cover the balance of the loan plus costs. |
