Detailed Answer

Short answer: Yes — in many New Mexico civil cases parties can use a consent order (sometimes called a consent judgment or stipulated order) to avoid a contested hearing and direct the court to enter an agreed distribution of sale proceeds. However, the court must sign the order, certain types of claims or affected non‑parties may require a hearing or notice, and some statutory procedures (for example, lien priority, bankruptcy stays, guardian/ward or minor settlements, or judicially‑supervised sales) may limit or change how and when proceeds can be distributed.

What a consent order is (and what it does)

A consent order is a written agreement between the parties that the court adopts and signs. Once entered, it has the force of a court order. In New Mexico you commonly see consent orders used to resolve property disputes, partition or sheriff sale proceeds, mortgage/foreclosure accounting disputes, and other civil money disputes without a full contested hearing.

When a consent order can skip a hearing

If all parties with a legal interest in the proceeds agree in writing, they can present a proposed consent order to the judge asking the court to enter it without a hearing.
The judge has discretion. If the judge finds the agreement lawful and appropriate, the judge typically will sign the consent order and the clerk will disburse funds according to the order.
Courts routinely accept consent orders in routine civil matters where parties are competent adults and no statutory protection or public interest requires a hearing.

When a hearing (or extra steps) is likely required

Even with agreement between the immediate parties, the court may require a hearing or additional steps when:

Third parties or lienholders who were not part of the agreement have recorded claims against the sale proceeds (e.g., tax liens, judgment liens). Those parties must be given notice and may need to be joined or allowed to be heard.
The case involves funds for minors, incapacitated persons, or a guardianship. Settlement or distribution to those persons often requires court review to protect their interests.
The proceeds are held in the court registry. The court may require an accounting, a secure release procedure, or a hearing to resolve competing claims before disbursing registry funds.
There is a bankruptcy stay in place for one of the parties. Bankruptcy can prevent distribution until the bankruptcy court lifts the stay.
The proposed distribution would violate statute or public policy (for example, unpaid taxes, child support, or other statutory priorities).

Practical steps to use a consent order to distribute sale money in New Mexico

Confirm who has a legal interest in the proceeds. Check recorded deeds, mortgages, and judgment liens.
Negotiate and reduce the agreement to a written stipulation that states precisely how funds will be divided and includes releases from the paying parties.
Provide necessary notice to known lienholders and interested non‑parties. Consider certified mail and filing proof of service with the court.
Prepare a proposed consent order for the judge to sign that attaches any supporting documents (e.g., payoff statements, lien releases, settlement calculations, and affidavits of no bankruptcy). State whether the funds are in the court registry or will be paid after entry.
File the stipulation and proposed consent order with the court and request entry without a hearing. If the court requests a hearing, be prepared to explain the agreement and provide evidence supporting distribution calculations.
After the judge signs the consent order, submit any additional forms the clerk requires to obtain disbursement (e.g., a clerk’s release or disbursement request). Keep copies of releases and receipts.

Common pitfalls and how to avoid them

Failing to discover hidden liens: do a title search and ask for payoff statements to avoid later claims that undo the distribution.
Not getting clear releases: obtain written releases from each party receiving money and, where possible, from lienholders being paid.
Ignoring statutory priorities: certain claims (taxes, child support) can take priority over private agreements. Confirm statutory priorities before final distribution.
Overlooking the court’s discretion: even an agreed order must be acceptable to the judge. Draft orders that explain the basis for distribution and attach supporting evidence.

Where to look in New Mexico law

New Mexico district courts apply the New Mexico Rules of Civil Procedure and local court rules when parties ask the court to enter a consent order. See the New Mexico Courts rules and resources: https://www.nmcourts.gov/self-help/rules/. For statutory matters such as lien priorities and enforcement, consult the New Mexico statutes available at the New Mexico Legislature site: https://www.nmlegis.gov/Laws_and_Constitution. If the dispute concerns foreclosure or sheriff’s sales, the statutory and county sheriff procedures that govern sale, notice, and distribution should be reviewed.

Example (hypothetical)

Two co‑owners sell a foreclosed property. The sale yields $50,000. Both owners and the mortgagee agree how to split the net proceeds after the mortgage payoff. They prepare a stipulation, attach payoff statements and lien searches, and file a proposed consent order asking the court to enter the distribution without a hearing. The judge reviews the documents, confirms no junior lienholders are unpaid and no bankruptcy stays apply, signs the consent order, and the clerk disburses funds per the order. If an unknown judgment creditor later surfaces, they may still have remedies against the recipients, but the court’s signed consent order normally governs the immediate disbursement.

Helpful Hints

Before drafting a consent order, run a title and lien search to identify all parties who must be paid or given notice.
Use clear, specific language in the consent order: state dollar amounts, payees, and the timing of payments.
Attach payoff statements, releases, and proof of notice to the proposed order so the judge can decide without an evidentiary hearing.
If minors or incapacitated persons are involved, expect the court to require additional protections or a hearing.
Ask the clerk if the court requires any special forms to disburse registry funds after entry of the order.
Consider checking bankruptcy court records for any stay before distribution.
If in doubt, consult a New Mexico attorney for document review and to ensure notice and statutory priorities are handled correctly.

Disclaimer: This article explains general principles under New Mexico law and is for educational purposes only. It is not legal advice. For advice about a specific situation, consult a licensed New Mexico attorney.