HOUSE BILL 641
48th legislature - STATE OF NEW MEXICO - first session, 2007
INTRODUCED BY
Peter Wirth
AN ACT
RELATING TO REAL PROPERTY; DESIGNATING PRIORITY AND TIME PERIODS FOR REDEMPTION RIGHTS AFTER JUDICIAL FORECLOSURE.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:
Section 1. Section 39-5-18 NMSA 1978 (being Laws 1931, Chapter 149, Section 2, as amended) is amended to read:
"39-5-18. REDEMPTION OF REAL PROPERTY SOLD UNDER JUDGMENT OR DECREE OF FORECLOSURE--NOTICE AND HEARING--REDEMPTION AMOUNT--PRIORITY OF REDEMPTION RIGHTS.--
A. After sale of [any] real estate pursuant to [any such] the order, judgment or decree of [any] foreclosure in the district court, the real estate may be redeemed by the former defendant owner of the real estate, [his heirs] by the owner's personal [representatives or assigns] representative or by any junior mortgagee or other junior lienholder whose rights were judicially determined in the foreclosure proceeding:
(1) by paying to the purchaser [his] or the purchaser's personal [representatives or assigns] representative, at any time within nine months from the date of sale, the amount paid at the sale, with interest from the date of [purchase] sale at the rate of ten percent a year, together with all taxes, interest and penalties thereon, and all payments made to satisfy in whole or in part any prior lien or mortgage not foreclosed, paid by the purchaser after the date of sale, with interest on [such] the taxes, interest, penalties and payments made on liens or mortgages at the rate of ten percent a year from the date of payment; or
(2) by [petitioning] filing a petition for redemption in the pending foreclosure case in the district court in which the judgment or decree of foreclosure was entered for a certificate of redemption and by making a deposit of the amount set forth in Paragraph (1) of this subsection in cash in the office of the clerk of the district court in which the order, judgment or decree under which the sale was made was entered, at any time within nine months from the date of sale. [B.] Copies of the petition for redemption shall be served upon the purchaser of the real estate [under a] at the judicial foreclosure sale or [his] the purchaser's personal [representatives. or assigns] representative and all parties who appeared in the judicial foreclosure case; and
(3) the former defendant owner shall have the first priority to redeem the real estate. If the former defendant owner does not redeem the real estate as provided in this subsection, each junior mortgagee or junior lienholder shall have a right to redeem the real estate. The order of priority of such redemption rights shall be the same priority as the underlying mortgages or liens, as set forth in the court order, judgment or decree of foreclosure or as otherwise determined by the court. All redemptions must be made within the time periods set forth in Paragraphs (1) and (2) of this subsection.
[C.] B. Any purchaser of real estate [under] at a foreclosure sale or [his] the purchaser's personal [representatives or assigns] representative, upon being served with the petition for redemption of the property, shall answer the petition within thirty days after service of the petition.
[D.] C. The hearing shall be governed by the rules of civil procedure and shall be set upon the earlier of the filing of a redemption by the former defendant owner or the expiration of the period for filing a redemption. At the hearing, the judge shall determine the amount of money necessary for the redemption, which shall include the money paid at the sale and all taxes, interest, penalties and payments made in satisfaction of liens, mortgages and encumbrances. If more than one redemption is filed, the court shall also determine which redemption has priority pursuant to Subsection A of this section and which party is therefore entitled to redeem the property. At the conclusion of the hearing, the district court may order the clerk of the court to issue the certificate of redemption upon such terms and conditions as it deems just.
D. Redemption rights as provided in Subsection A of this section shall not be assigned, transferred or otherwise conveyed.
E. A trustee's sale pursuant to a power of sale in a deed of trust as provided in the Deed of Trust Act is not a sale of real estate pursuant to a judgment or decree of a court. Except as provided in this section as to the rights of an omitted junior encumbrancer, no real estate may be redeemed from a trustee's sale. A junior encumbrancer who does not have actual notice or knowledge of the trustee's sale and who has been otherwise omitted from the trustee's sale proceeding shall be entitled to redeem the trust real estate by petitioning the district court in the county where the trustee's sale was held. The action shall proceed as provided in Subsections [B] A through [D] C of this section. The purchaser of the trust real estate at the trustee's sale or the successors and assigns of the purchaser may likewise petition the district court to terminate the right of redemption of an omitted junior encumbrancer. In any such action, the redemption period shall be nine months or the period provided in the deed of trust, whichever is the lesser period, and shall begin to run from the date judgment is entered in the action.
F. For the purpose of this section, "date of sale" means the date the district court order confirming the special master's report is filed in the office of the clerk of the court."
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