Albuquerque Foreclosure Attorney

A foreclosure happens when a borrower cannot make payments on their mortgage, which then causes the lender to repossess their house in an attempt to sell it. This allows lenders to recover the amount of money they owe on their mortgaged property, but to the homeowner this process can be time-consuming and difficult to understand. You may have put a significant amount of money into your home, and now that your property is being threatened with foreclosure, you may be unsure about your future. To ease your uncertainty and discuss your options, it’s important to speak with an Albuquerque foreclosure attorney today.

Gilchrist Law can provide the resources and information needed to protect you during, and possibly stop, the foreclosure process. No matter what part of the process you need assistance with, we can help you build a case to ensure you don’t meet the worst-case scenario.

How Foreclosure Happens

There are several ways a foreclosure can happen. A borrower is the one who owns the home, and the lender is the bank that owns the loan or issues it. An investor is only affected if the lender sells the loan. The servicer is the bank that you make mortgage payments to. The servicer can also start the foreclosure process when the borrower defaults on the mortgage payment.

A lender is given the right to use the property as collateral should a borrower fail to abide by their mortgage. When the borrower misses a payment, the lender notifies the borrower and informs them that they need to pay. After two missed payments, a demand letter is sent. While a lender may still work with you on this matter, this letter is typically a sign that they’re going to be more aggressive if you neglect or refuse to pay the agreed upon mortgage.

After 90 days of missed payments, the lender will then send a notice of default. This gives the borrower 30 days to complete their payments and reinstate their loan. If you fail to do this, the lender can begin the foreclosure process.

Every state has its own foreclosure laws, and in New Mexico, the judicial foreclosure process is what is most often used. Through this process, the lender goes to court and gets permission to foreclose. If they can prove you weren’t paying your required amount, they can auction off your property, or the bank can take the property and sell it to recoup the money. This process is lengthier than a power of state process, which is only sometimes used in New Mexico. Through this, there is no court involvement unless the property owner sues the lender.

What Happens If My Property Forecloses?

If you fail to pay the amount you owe to the lender and the property fails to sell at an auction, the bank can add your property to their real estate owned (REO). In turn, real estate companies may try to acquire the property and sell it themselves, mainly because banks sell them at a lower price than they’re worth. For you, you’ll see a foreclosure on a credit report for the next seven years. Your credit score will be hit significantly, which may prevent you from getting other loans in the future.

If your property has been foreclosed on, the sale of it cannot occur for 30 days. You have 120 days to pay the amount you owe before the foreclosure goes into effect, therefore you have nearly five months until you could lose your property in a sale. Not every process takes the same amount of time, but you can expect roughly five months total for the entire process to take place.

In some cases, you may still owe the lender money if selling the property didn’t cover the full amount left on the mortgage. Some people opt to file for bankruptcy to eliminate their liability. However, this isn’t always recommended, especially if you only have this debt to pay.

What to Do During and After a Foreclosure

If your property forecloses and you have to leave, there are still rules in play. For example, you’re allowed to take any personal possessions with you when you leave. However, any fixtures, including alarm systems and dishwashers, must remain at the property. Fixtures are considered part of the property, so anything else that isn’t built in or considered a part of the property can be taken without an issue.

Many individuals wonder if they can repurchase their property after it forecloses. The answer is yes, you can buy it back. However, you’ll need to have the funds to do so, as it requires the entire amount up front. If you already have the money to redeem the property but the bank claims you don’t, you’ll want to speak with a foreclosure lawyer immediately so they can help sort out the issue.

Not only will you have to manage all of the legal and financial troubles, but you may begin to worry about your future. The last thing anyone wants is to be removed from their home due to the foreclosure process. If you’re trying to support your family and are at risk of this happening, you have legal options at your side. It’s important to speak to an attorney as soon as possible.

How to Stop a Foreclosure

Whether you aim to stop the foreclosure before or after contacting legal representation, there are ways to stop the foreclosure from progressing. There are three main ways people in Albuquerque work to stop a foreclosure:

• Filing for bankruptcy. As previously mentioned, filing for bankruptcy may help a foreclosure process from moving forward. When you file for bankruptcy, the lender cannot foreclose your property or collect the debt. There are two versions of bankruptcy to consider — Chapter 7 and Chapter 13. Chapter 7 bankruptcy means you wouldn’t have to pay the debts included, whereas Chapter 13 will still require you to pay them.
• Reinstating the loan. Before the property gets transferred to the bank, you can reinstate your loan to prevent the property from entering the foreclosure phase.
• Redeeming the property. If you pay off the entire amount before the foreclosure sale begins, you will have “redeemed” the property. In New Mexico, you typically have one month to redeem the property, but you can submit a request to extend it.

Not every foreclosure requires you to file for bankruptcy or reinstate your loan, but there are solutions to every situation. Should you need assistance with any of these steps, or if you’re unsure which one to take, an Albuquerque foreclosure lawyer can make this step simpler.

Why Hire a Foreclosure Lawyer?

Many residents in Albuquerque are unaware of their rights when faced with foreclosure. You may have tried to make payments and inform the lender of your situation yet were ignored or shut down. There are even cases where the bank might have made a mistake and blamed it on you instead. No matter your situation, you deserve to understand your rights and have them protected. For this reason, it’s crucial to speak with legal representation as soon as possible.

At Gilchrist Law, we have worked diligently with New Mexico residents who were struggling with the foreclosure process. If the bank hasn’t processed your payments, or if you were given different instructions by the lender, you may have a case. It can be overwhelming to seek help constantly yet never find a path forward, but we’re prepared to change that.

If you’ve been doing what you’re supposed to, you don’t deserve to suffer intense consequences despite your efforts to avoid them. Wrongful foreclosures are unfortunately common in New Mexico, but you have options. When you hire a foreclosure attorney, they can evaluate your situation and determine how to proceed. They’ll question the bank and determine if they’ve made a mistake on their end. Banks typically have an intimidating legal team of their own, but we’re prepared to use our knowledge and experience to contest their claims regardless. Facing a court on your own isn’t ideal, as you may forget crucial details or be unsure how to defend yourself in the moment.

Talk to a New Mexico Foreclosure Lawyer Today

If you’re facing foreclosure, you may worry about where you and your family will live next. You may take a severe hit on your credit score, which can prevent you from qualifying for loans in the future. Additionally, some real estate agencies may not offer to sell you any property due to this experience, and all of this can be overwhelming. However, you may not even have made a mistake in the first place. The bank may have forgotten to process a payment or failed to notify you of something in time. This is where we come in.

At Gilchrist Law, we understand the complicated foreclosure process in New Mexico and can help defend you in this difficult situation. If your case has any vulnerabilities, we can use these to our advantage and hold the responsible party accountable. The well-being of you and your family is at the forefront of this issue, and we’re prepared to help you maintain it. Learn more about how we can help by contacting us today.