HOUSE JUDICIARY COMMITTEE SUBSTITUTE FOR

HOUSE BILL 174

50th legislature - STATE OF NEW MEXICO - first session, 2011

AN ACT

RELATING TO REAL PROPERTY; ENACTING THE FORECLOSURE FAIRNESS ACT; ALLOWING RECOVERY OF ATTORNEY FEES FOR THE PREVAILING DEFENDANT IN A FORECLOSURE ACTION.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:

     SECTION 1. SHORT TITLE.--This act may be cited as the "Foreclosure Fairness Act".

     SECTION 2. FORECLOSURE--ATTORNEY FEES--COSTS.--

          A. The court shall award reasonable attorney fees and costs to a defendant who prevails in a claim of foreclosure on a mortgage note secured by the defendant's primary residence, provided that the plaintiff in such an action is not an individual bringing the claim on the individual's own behalf or on behalf of a sole proprietorship owned by the plaintiff.

          B. For the purposes of this section, a defendant who exercises the defendant's right of reinstatement or redemption shall not be considered a prevailing party.     

     SECTION 3. EFFECTIVE DATE.--The effective date of the provisions of this act is July 1, 2011.

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