If you are a homeowner in New Mexico who is concerned about foreclosure, you should know that you’re not alone. Whether you are at risk of losing your home or are being threatened with foreclosure in New Mexico, it can be terrifying to not know what to do or where to get help.
In this blog post, we will explain the New Mexico foreclosure process and your options if you find yourself facing foreclosure. Additionally, you will learn how to prevent foreclosure.
For more information about the foreclosure process, whether it’s your first time facing foreclosure or you’re just curious about what it looks like, keep reading.
What is a Foreclosure, and How Does it Work in New Mexico?
In a foreclosure, the lender attempts to recoup the balance of a loan from a borrower who has stopped making payments by forcing the sale of the collateral.
The state of New Mexico is a judicial foreclosure state, which means a bank or lender must file a lawsuit in order to foreclose on your home.
How to Avoid Foreclosure
Even if you are facing financial difficulties, you may still be able to avoid foreclosure in New Mexico.
Negotiate With Your Lender
Your first option should always be to talk to your lender. By explaining your financial situation, you may be able to work out a payment plan where you can make smaller payments in a longer period of time.
Apply for a Loan Modification
A loan modification may be available to you if you are struggling to stay current with your mortgage payments. In a loan modification, the terms such as interest or repayment period can be adjusted.
Sell Your Home
If your financial situation is tight and you can’t seem to find a way out, selling your home may be the solution you need. Though this may not be the easiest decision to make, it can save you from foreclosing your home and making a dent in your credit.
How to Stop or Delay Foreclosure
If you’re already in foreclosure, there are three ways you can slow down or halt the process.
Reinstate the Loan
According to New Mexico law, you can reinstate a loan prior to foreclosure, judicial sale, or other transfer of title to the property. As a result of the cure, you will be reinstated to your original position.
Redeem the Property
Another way to halt a foreclosure is to redeem the property. To redeem a loan, the full amount has to be repaid before the foreclosure sale. As a general rule, New Mexico mortgage contracts limit the redemption period to one month; otherwise, the redemption period is nine months. During the redemption period of one month, a homeowner may request an extension of the redemption period from the court.
File for Bankruptcy
In some cases, bankruptcy may not be the best solution, but it can avoid foreclosure as it can delay foreclosure proceedings by several months. Contact a local bankruptcy attorney to learn more about your options.
What to Do if Foreclosure is Unavoidable
When dealing with a foreclosure, it is best to seek legal advice from a qualified professional. In order to achieve the best possible outcome for you and your family, it is essential that you understand your rights and options.
The Judicial Foreclosure Process in New Mexico
During a judicial foreclosure, the lender files a lawsuit asking a court for permission to sell the property. You receive notice of the suit when the lender serves you with a summons and complaint. After service, you have 30 days to file an answer. Lenders can sell your home by foreclosure if you do not respond to the lawsuit, which will result in a default judgment being issued by the court.
However, if you decide to defend the foreclosure lawsuit, it will be subject to a litigation process. In that case, the lender may ask the court to grant summary judgment which is a request for a judgment in favor of the lender based on the fact that no dispute exists about the critical aspects of the case. The judge will order the home sold at a foreclosure sale if the court grants summary judgment for the lender or you lose at trial. Four weeks before the sale date, a notice of sale must be published in a newspaper.
The Consequences of Foreclosure
The ramifications of foreclosure can be severe for homeowners and their communities. Foreclosure can result in homeowners losing their homes and damaging their credit scores, making it challenging to apply for a new home or line of credit. Additionally, foreclosure is time-consuming and emotionally draining.
Communities can also be negatively affected by foreclosures. Foreclosures can cause property values to decline, resulting in a loss of tax revenue and an increase in crime.
Assistance for Homeowners Facing Foreclosure in New Mexico
The U.S. Department of Housing and Urban Development offers homeowners foreclosure prevention assistance and counseling. MFA Housing New Mexico also offers foreclosure prevention information and assistance.
Avoid Foreclosure in New Mexico by Selling Your House for Cash
If you’re facing foreclosure or are having trouble keeping up with your mortgage payments, selling your home may provide you with the solution you’re looking for. At Favor Home Solutions, we understand how difficult this time can be. For this reason, we are committed to helping you get the best price for your home and guiding you through the entire process.
To accomplish this, our team will:
- Evaluate your situation and make you a fair, all-cash offer
- Close on the date of your choice
- Take care of all the paperwork
- Pay all the closing costs
- Handle cleaning and repairs
- And much more!
If you’re interested in learning more about getting a free, no-obligation offer for your home, contact us today!
