SENATE BILL 531
46th legislature - STATE OF NEW MEXICO - second session, 2004
INTRODUCED BY
Carroll H. Leavell
AN ACT
RELATING TO REAL PROPERTY; MAKING THE RIGHT OF REDEMPTION CONNECTED TO THE REAL PROPERTY BEING REDEEMED; CHANGING THE TIME PERIOD FOR THE STATE TO REDEEM THE REAL PROPERTY.
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.--
A. After sale of [any] real estate pursuant to [any such] the judgment or decree of [any] a court, the real estate may be redeemed by the former defendant owner of the real estate, his heirs or personal representatives [or assigns] or by any junior mortgagee or other junior lienholder:
(1) by paying to the purchaser or his personal representatives [or assigns], at any time within nine months from the date of sale, the amount paid, with interest from the date of purchase 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, with interest on such 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 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 real estate under a foreclosure sale or his personal representatives [or assigns].
C. Any purchaser of real estate under a foreclosure sale or his personal representatives [or assigns], upon being served with the petition for redemption of the property, shall answer the petition within thirty days after service of the petition.
D. The hearing shall be governed by the rules of civil procedure. 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. 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.
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 through D 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. The right of redemption is not a separate real estate property interest that can be assigned without sale or assignment of the real estate, junior mortgage or other junior lien interest giving rise to such right of redemption."
Section 2. Section 42-6-14 NMSA 1978 (being Laws 1947, Chapter 150, Section 3) is amended to read:
"42-6-14. JUDICIAL SALE--ALTERNATIVE REMEDIES.--[Except as herein otherwise provided] A judicial sale made in pursuance of a judgment in such a suit shall have the same effect respecting the discharge of the property from liens and encumbrances held by the state as may be provided with respect to such matters by law as to all other persons; provided that a sale to satisfy a lien inferior to one of the state shall be made subject to and without disturbing the lien of the state, unless the state, by its attorneys, consents that the property may be sold free of its mortgage or lien and the proceeds divided as the parties may be entitled; and provided, further, that where a sale of real estate is made to satisfy a lien prior to that of the state, the state shall have [nine months] ninety days from the date of sale within which to redeem. In any case where the debt owing the state is due, the state may ask, by way of affirmative relief, for the foreclosure of its own lien or mortgage [and]. In any case where property is sold to satisfy a first mortgage or first lien held by the state, the state may bid at the sale [such] a sum not exceeding the amount of its claim with expenses of sale, as may be directed by the head of the [department, bureau or other] agency of the state [which] that has charge of the administration of the laws in respect of which the claim of the state arises."
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