Property tax foreclosure in New Mexico

The property tax process in New Mexico, step by step

1. Taxes due, interest and penalty

   Due November 10 and April 10; late after 30 days

   Property taxes are paid to the county treasurer in two halves. If a payment is more than 30 days late, interest of 1 percent a month is added, plus a penalty of 1 percent a month up to 5 percent of the delinquent taxes (at least $5).

   NMSA 1978, § 7-38-38; § 7-38-49; § 7-38-50

2. Your account moves to the state

   After taxes are delinquent for more than 2 years (list prepared by July 1)

   The county treasurer lists real property with taxes delinquent for more than 2 years, records the list with the county clerk and sends the accounts to the Taxation and Revenue Department's Property Tax Division. From then on you deal with the Property Tax Division, though county treasurers may still accept payments for it.

   NMSA 1978, § 7-38-61; § 7-38-62; 3.6.7.71 NMAC

3. Sign an installment agreement

   By 5:00 p.m. the day before the sale

   The Property Tax Division can give you up to 36 months to pay all delinquent taxes, penalties, interest and costs, with interest of 1 percent a month on the balance. Its rules require a down payment of at least 20 percent unless the director approves less, and payments must be on time. No agreement can be made once the sale has happened.

   NMSA 1978, § 7-38-68; 3.6.7.77 NMAC

4. Notice of the auction

   20 to 30 days before the sale by certified mail; newspaper ads the 3 weeks before

   The Division must mail you a certified letter with the amount due, the time and place of the sale, and how to set up an installment agreement, and it must also notify recorded lienholders. If it fails to mail the certified notice, the sale is invalid. Notice is also published in a local newspaper once a week for 3 weeks.

   NMSA 1978, § 7-38-66; § 7-38-67(B)

5. The public auction

   Any time after 3 years from the first delinquency date

   The Division sets a minimum price that cannot be less than all taxes, penalties, interest and costs, and it must consider the value of your interest in the property. Paying everything due by 5:00 p.m. the day before the sale prevents it, and proof of that payment invalidates a sale that goes ahead anyway.

   NMSA 1978, § 7-38-65; § 7-38-66(E); § 7-38-67

6. Deed to the buyer and a 2-year challenge window

   Deed issued after payment; challenges within 2 years of the sale

   The buyer gets a deed to your interest in the home, and there is no right to buy it back afterward. Within 2 years you can sue in district court only on limited grounds, such as that you were not sent the required notice or had already paid or signed an installment agreement before the sale.

   NMSA 1978, § 7-38-70

7. Claim the excess proceeds

   Within 2 years after the sale

   New Mexico already paid surplus to former owners before Tyler v. Hennepin County (2023). The Division keeps its costs, penalties and interest, sends the taxes to the county, and since July 1, 2026 may also keep other state tax debts you owe; the balance goes to you. The Division mails former owners a notice, you apply with proof of ownership, and money unclaimed after 2 years goes to the state's unclaimed property program.

   NMSA 1978, § 7-38-71; 3.6.7.80 NMAC

Common questions in New Mexico