Knowing what the process of foreclosure in Las Cruces entails is a key aspect of making your way through it.
Before we dive in…
Understanding What Foreclosure Involves in NM
Foreclosure: What Is It?
Foreclosure can be described as a legal process lenders use when they want to seize property, typically after a borrower fails to make payments.
Nobody likes going through foreclosure, but keep in mind that if it happens to you, things may not be as bleak as they seem.
When you understand how foreclosure works, you will have the knowledge necessary to make your way through the process. In doing so, you will come out on top.
The Fundamental Foreclosure Stages
The foreclosure process in America is comprised of a couple of stages: “power of sale” and “judicial sale.”
Get in touch with Level Cash Home Offers by calling 575-213-1986. You can also contact us directly on our website. We will be happy to navigate you all the way through the foreclosure process.
In both scenarios, foreclosure generally does not reach a courtroom until at least three monthly payments have been missed. Sometimes, lenders will send several notices out about your state of arrears, whether you have fallen behind on payments or are overdue.
For Non-Judicial Foreclosure (Power of Sale)
- Mortgage lenders will serve you with documentation demanding payment. A court does not need to be involved, but the process might be subjected to a judicial review.
- After a certain waiting period elapses, a “deed of trust” will be drawn up. Your property’s control will be transferred over to a designated trustee.
- This trustee will then have the ability to sell the house to a lender, typically at some kind of public auction (though some notice needs to be given first).
For Judicial Foreclosure
- The mortgage lender needs to file suit within the court’s legal system.
- A letter will be sent to you from that court, essentially demanding payment from you.
- You will need to make a payment in court within 30 days in order to bypass foreclosure. That 30-day duration may be extended under certain circumstances.
- If a payment is not made during this period, then a judgment may be entered. At this point, a lender can make a request for the property’s sale, typically by way of an auction.
- After the property has been sold, a sheriff will serve you a drawn-up eviction notice. You will be forced to vacate the place immediately.
If somebody has expressed interest in your property, they will be notified. For instance, banks or contractors who have liens placed against foreclosed properties are eligible to receive an auction’s proceeds.
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