- Who sends it
- The district court in your foreclosure case
- What it starts
- A stay of the case and a deadline to return the Homeowner Information Form
- Do this first
- Find your deadline on the order and send the Homeowner Information Form with your phone and email
What this document is in New Mexico
The New Mexico courts describe the Foreclosure Settlement Program as "a Court-Ordered Settlement Facilitation Program" that is "available in residential foreclosure cases." Its purpose is "to provide settlement facilitation services to allow the homeowner and mortgage company an opportunity to settle their case." The Second Judicial District says the program helps homeowners and lenders reach agreements "wherein a majority of cases results in loan modifications."
The order of referral is how the court sends your case to the program. The program's orientation materials explain that a stay "stops the foreclosure litigation from moving forward while the parties are trying to reach a settlement agreement."
What it does and does not mean
- The settlement facilitator is neutral, "is not your lawyer and does not represent you," and "cannot provide legal advice."
- Cost: the program's orientation says the facilitator is "provided at no cost to the parties." The New Mexico state file notes the Eleventh Judicial District (San Juan County) has listed a sliding-scale fee, so ask your district.
- It does not promise a modification. "If the case does not settle, the stay will be lifted, and the case will return to foreclosure litigation."
- If the case settles, the stay is lifted so the lender can dismiss or file the right papers.
The deadlines it starts and how to count them
Your Homeowner Information Form deadline is set in the order or the program's letter to you. The statewide materials do not set one number of days, so use the date printed on your papers. Count calendar days and send it early.
How long the program takes: "Every case is different. Generally, the process takes several months." When the stay is lifted, court deadlines start running again. The New Mexico funnel file notes one district's materials say you have 30 days to answer after a stay is lifted, which may differ by district, so ask the clerk.
What to do this week
- Complete the Homeowner Information Form and submit it before your deadline.
- Give the program correct contact information, including your phone number and email address.
- Respond to calls and emails from the program, and take part in the first telephone status conference.
- Complete the lender's loss mitigation application and send the financial documents it asks for. Keep copies.
- Questions or need an interpreter: call the program at 505-841-7626 or email albdfsp@nmcourts.gov.
- Read the New Mexico foreclosure mediation page.
State help and scam warnings
Free help: New Mexico Legal Aid at 1-833-545-4357 and the New Mexico Courts HelpLine at 855-268-7804. The Second Judicial District lists (505) 841-8400 for checking that a call or letter really came from the court. See the New Mexico foreclosure help page.
- The program is run by the court. No one can charge you to "get you into" it.
- If someone claiming to be from the court asks for a payment, call the court to check before you do anything.
The rest of the New Mexico process
See how foreclosure works in New Mexico, the timeline, ways to stop it and free help in New Mexico, or read the national guide to this letter.
Common questions
Does the New Mexico Foreclosure Settlement Program stop my foreclosure?
It puts the case on hold (a stay) while you and the lender try to settle. If there is no settlement, the stay is lifted and the case goes back to the judge.
What happens if I miss the Homeowner Information Form deadline?
The program says you must submit it before your deadline. If you missed it, call the program at 505-841-7626 right away and ask what you can do.
Is the New Mexico settlement facilitator my lawyer?
No. The program says the facilitator is neutral, is not your lawyer and cannot give legal advice.
Does the program cost anything?
The statewide orientation says the facilitator is provided at no cost to the parties. One district has listed a sliding-scale fee, so ask your district court.
Other New Mexico letters
- Notice of the Right to Cure the Default (Home Loan Protection Act)For most owner-occupied home loans, New Mexico's Home Loan Protection Act requires the lender to send a notice of the right to cure before it can file a foreclosure. It must give you at least 30 days from delivery to catch up, and the lender must accept partial payments you make in response.
- Summons and Complaint for Foreclosure (with Plaintiff's Certification of Pre-Filing Notice)New Mexico home foreclosures happen in district court. The lawsuit starts when the lender files a complaint and you are served with a summons, which gives you 30 days to respond with an answer or motion. For your home, the lender must also file a certification that it sent you a pre-filing notice of your options.
- Notice of Sale (foreclosure sale under judgment, usually by a special master)After a New Mexico judge enters a foreclosure judgment, the home is sold at a public sale, usually run by a special master. The sale cannot happen until at least 30 days after the judgment, and during those 30 days you can stop it by paying the full judgment to the court clerk. Notice must be published for 4 weeks.
- Order Confirming Special Master's Report (order confirming sale)After a New Mexico foreclosure sale, the judge reviews the special master's report and files an order confirming the sale. The date that order is filed starts your redemption period, which is 9 months unless your mortgage shortens it, never to less than 1 month. During that time you can buy the home back.