The state Supreme Court has adopted rules to help New Mexicans facing the potential loss of their homes after the end of a federal foreclosure moratorium. Under civil case procedures established by the rules, a foreclosing creditor cannot obtain a judgment against a homeowner until certifying that loan modification and loss mitigation negotiations were attempted with the borrower.
Before the filing of a foreclosure case, the rules require that homeowners be given information about their loan and possible ways to avoid losing their house. Homeowners must be provided with a list of resources where they can obtain help to avoid foreclosure, including legal services and possible financial assistance. The foreclosing party must certify to the court that required information was provided. Later in the proceeding, before a court will enter a foreclosure judgment, a certification must be submitted about loss mitigation and loan modification negotiations with the borrower.
The rules and related court forms become effective for cases filed on or after Sept. 7.
“We have reached a point in the COVID-19 pandemic where courts can normally process consumer debt cases and foreclosures in a fair and orderly manner,” said Chief Justice Michael E. Vigil. “The orders by the Supreme Court balance the interests of economically distressed New Mexicans and their creditors, and will help courts cope with an expected increase in debt and foreclosure cases as pandemic-related consumer protections expire.”
