NM Lists is committed to providing the most accurate information available, but this site is in no way a substitute for your own due diligence and title search. So, before you make on offer on a Pre-Foreclosure or bid at an auction, we recommend you do your own research so that you can make the best and most informed decision that you can. NM Lists is not responsible for losses on investments based on the data on the site. All court documents are publicly available, some are even online, and it is the responsibility of those using our data to perform their own analysis of any deal prior to investing. Hiring a lawyer is always a good idea prior to making any real estate transactions and we highly suggest it. In addition, the following guidelines should prove helpful:
Prior to the auction you’ll want to learn as much as you can about the properties you are interested in. All of our data is aggregated from many public sources, and those public sources may not be 100% accurate. We report the best quality data he can find, but nothing is a replacement for your own research.
Ordering a Preliminary Title Report will show you if there are any additional lienholders or second mortgages. This can also be used to investigate and ensure that no one else has recorded Rights of Redemption, a Mechanic’s Lien, or anything else that could jeopardize your deal.
Seeking Legal Advice or Counsel through a licensed Real Estate Attorney can help you avoid issues dealing with squatter’s rights or evictions, along with answer questions about title, bidder’s rights and procedure, or even run a redemption for you to get your deed quicker.
Look around the neighborhood when you go to do an assessment. Are the homes in the area newer or more established? Are they being taken care of, or does the abandoned home you’re there to see fit in easily with the surrounding properties? Is the house vacant or occupied? Please do not trespass and remember that the property does not change ownership just because there was an auction.Seeking legal advice can give you a clearer understanding of the exact situation in your case.
Estimate the rehab cost of the property by performing your own inspection. Completing your own inspection prior to closing is necessary to ensure that your rehab budget is correct.
Obtain the Special Master’s Report once it is filed. This document details the events of the auction and lists the buyer and how much they paid. This is the legal contract for the auction price between the bank and the courts
Understanding Rights of Redemption before the auction is absolutely necessary in a Judicial Foreclosure State like New Mexico. If it is your first auction you’ll be surprised when you see how few people actually bid at the auction, instead, they are there to see how much the property auctioned for. Then, if the auction price is far enough below fair market value, AND the rehab and closing costs are such that there is still a profit to be made, THEN they’ll attempt to purchase the Rights from the homeowner. See below for some more resources on Right of Redemption.
General Rights of Redemption Information: https://www.nolo.com/legal-encyclopedia/right-of-redemption-after-foreclosure-getting-your-home-back.html
NM Specific Rights of Redemption Laws: https://law.justia.com/codes/new-mexico/2009/chapter-39/article-5/section-39-5-18