What is Foreclosure?

You are not alone. Every day thousands of New Mexicans, just like you, are facing foreclosure or find it hard to make their mortgage payments. The most common causes for these problems are major illness, unemployment or divorce, but there countless other reasons as well.

It can feel like a hopeless, scary situation. But help is available, including mortgage company programs that can reduce your payment or help you through a temporary financial crisis. The worst thing you can do is nothing at all. Ignoring the problem will only make it worse.

You can learn about your options by calling us at 1-800-220-0350. You will speak with one of our Consumer Protection Advocates who can help you understand what the next steps are to solving the problems you are facing and connect you with resources to help you in the process. Our advocates will speak with you for free, and if you need help from an attorney they will help you get in touch with one. Legal services organizations provide free legal help to qualifying low-income New Mexicans.

In New Mexico, a foreclosure is the result of a court case in which a judge has decided the lender (usually a bank or credit union) will be allowed to sell a property to pay off the loan when the borrowers have missed payments. The borrowers are usually the same people as the homeowners.

New Mexico is a “judicial foreclosure” state. This means New Mexico foreclosure laws have extra protections for homeowners so that a lender can’t just take a house away if the homeowners miss payments. “Judicial foreclosure” means that you can only lose your house if two things happen:

  1. A foreclosure case is filed in court against you.

  2. A judge decides that the lender is allowed to take your house.

You can check online whether there is a foreclosure case against you by searching the New Mexico Courts website at https://caselookup.nmcourts.gov/caselookup/app.

You may also find out if there is a foreclosure case against you by calling our helpline at: 1-800-220-0350. Judicial foreclosure in New Mexico is a long court process, and can take several months or even years.

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