New Mexico Courts Help Homeowners in Foreclosure

Thousands of people in New Mexico each year face financial emergencies like job loss, catastrophic medical bills, or divorce.

Some are able to keep up with house payments, but many fall so far behind they risk losing their homes through a legal proceeding called foreclosure.

Fortunately, there is help.

In New Mexico, unlike many other states, lenders can’t decide on their own to seize a home when the homeowner is behind. They must file a case in court so that homeowners have a chance to tell their side of the story to a judge.

In New Mexico’s larger courts, homeowners have an extra option. They can choose to negotiate a settlement directly with their lender even before a judge is involved.

In these cases, the court provides a “settlement facilitator”: a neutral third party with the leadership and expertise to meet with both sides and help them resolve the dispute.

In most cases, the parties settle and the homeowner is able to keep their home. But even if the homeowner loses the case and has to give up their house, the settlement process allows them time to negotiate with their lender for an extended move-out date or cash to help them move.

This foreclosure settlement program soon will be available statewide, by order of the state Supreme Court.

By November 1, homeowners in the following counties will have a chance to meet with a settlement facilitator if their lender forecloses:

First Judicial District: Santa Fe, Rio Arriba, Los Alamos
Second Judicial District: Bernalillo
Sixth Judicial District: Luna, Grant, Hidalgo
Twelfth Judicial District: Otero, Lincoln
Thirteenth Judicial District: Cibola, Sandoval, Valencia
Other counties will be phased in over time as the courts develop their programs.

NOTE: New Mexico homeowners who are behind on payments or in foreclosure can get free housing counseling and/or legal help from United South Broadway Corporation (USBC) toll free on 1-866-201-6286. We can also be contacted here. USBC also can help homeowners apply for up to $30,000 in cash grants to catch up on payments.