Foreclosure is the legal process effected through the court system in which a mortgagee (lender—often a bank) terminates a mortgagor’s (borrower’s) interest in the real property in which the mortgagor gave the mortgagee a security interest (a lien) as collateral for the loan used to purchase the property.

Foreclosure generally occurs when a homeowner defaults and fails to make mortgage payments as required by the loan agreement (promissory note).

Foreclosure allows the lender to seize the property, remove the homeowner, and sell the home—all of which are legal remedies the mortgagor and mortgagee agreed to in the mortgage contract.

In New Mexico (NM), foreclosure is a legal process that allows a lender to terminate a borrower's interest in a property due to default on mortgage payments. New Mexico primarily uses the judicial foreclosure process, which means the lender must file a lawsuit in state court to initiate foreclosure. The borrower is then served with legal notice and has the opportunity to respond. If the court rules in favor of the lender, the property can be sold at auction. New Mexico law also requires a right to cure, giving the borrower a chance to pay back what is owed before the foreclosure can proceed. Additionally, after the sale, there is no statutory right of redemption for the borrower to reclaim the property. It's important for homeowners facing foreclosure in New Mexico to consult with an attorney to understand their rights and any potential defenses they may have under state law.