As was recently reported by Realty Trac, in July of 2012, approximately 1 in every 1,256 housing units in Albuquerque was in foreclosure.
A detailed breakdown of the foreclosure rate in Albuquerque is available here. In Rio Rancho the rate was much higher, with 1 in every 339 housing units in foreclosure (a detailed breakdown of foreclosure rates in Rio Rancho, New Mexico is available here). Foreclosure rates were also high in Valencia, Sandoval, Santa Fe and Dona Ana counties. In fact, the foreclosure rates in the Albuquerque area and other parts of New Mexico are comparable to Clark County, Nevada, which has one of the highest foreclosure rates in the entire United States. (For a comparison, the foreclosure rates in Clark County, Nevada, are available here). Notably these figures to not even include the homes that are facing foreclosure in the near future.
While there are a variety of reasons for the elevated foreclosure rates in New Mexico, chief among them is the recession following the financial crisis of 2007.
Since the recession began, economic stagnation and high unemployment rates have caused financial hardships for many New Mexicans. This situation has caused many homeowners to fall behind in their mortgage payments. Whatever the cause of the homeowners’ struggles, when they begin missing mortgage payments, the lender will typically initiate the foreclosure process against them. When this happens, the homeowner faces the possibility of losing his/her home to the lender. Foreclosure not only has obvious negative repercussions in the near term, such as being evicted from the home, but also has serious negative consequences in the long term as well. Homeowners who have been foreclosed upon will see a serious impact in their credit score which will make seeking financing in the future much more difficult. This will affect the homeowner’s ability to receive a car loan, enter into a rental agreement, or may result in the inability of the homeowner to acquire another home loan.
Tragically, many New Mexico homeowners, behind on their mortgage payments, do not fully understand the foreclosure process in New Mexico.
Worse still, some homeowners fall victim to “foreclosure scams” in which companies claim to assist in defending the homeowner from the lender’s foreclosure action only to take the homeowner’s money and do little else (a detailed news report discussing foreclosure scams is available here). Homeowners facing foreclosure need to be aware that New Mexico is a judicial foreclosure state, which means that the foreclosure action must be handled through the court system. As with most court proceedings, the foreclosure process can be difficult for people without legal training to navigate. Complicated rules of the courts and lenders, who would rather pay attorneys than work with the homeowners, can make defending a foreclosure action a daunting task for the typical homeowner. Consequently, the advice of a qualified and experienced attorney may be the homeowner’s best chance at avoiding being foreclosed upon. The attorneys at Albuquerque Business Law have defended numerous homeowners facing foreclosure in New Mexico. If you are a homeowner facing foreclosure, and you need the advice of an attorney, please contact Albuquerque Business Law as soon as possible. Failure to take action in a timely manner may affect your rights. For a more thorough discussion on the foreclosure process please visit.