Detailed Answer
After a non-judicial foreclosure under the New Mexico Uniform Trust Deed Act, any sale proceeds above the secured debt become surplus funds. An interested party—whether the former owner or a junior lienholder—can determine if surplus funds remain by following these steps:
- Locate the Foreclosure Sale Records. Visit the county clerk’s office where the property is located. Request the trustee’s deed of sale and any related foreclosure filings. These records confirm the sale price, sale date and trustee information.
- Review the Trustee’s Accounting. Under NMSA 1978, Section 48-10-12, the trustee must apply sale proceeds first to the debt, trustee advances and sale costs. Any remaining balance constitutes surplus funds. Contact the trustee or title company for a detailed accounting of sale.
- Monitor the Notice of Surplus. The trustee must notify the trustor (former owner) and junior lienholders of any surplus under NMSA 1978, Section 48-10-12.1. This notice establishes a 30-day deadline for submitting a claim to the trustee.
- Search Public Legal Notices. Surplus-fund notices often publish in legal newspapers. Check the county’s official legal notice publications or online archives for announcements of available surplus.
- Check the Unclaimed Property Database. If no valid claim is filed within statutory deadlines, the trustee may escheat unclaimed surplus to the State Treasurer. Search at unclaimedproperty.nmstatetreasurer.gov for abandoned foreclosure surplus funds.
- File a Timely Claim. To recover surplus, submit a written claim to the trustee within 30 days of the notice. Include your name, mailing address, proof of your interest (e.g., lien instrument or deed of trust) and a copy of the notice.
- Consider Legal Assistance. If the trustee fails to account properly or denies your claim without justification, consult an attorney. You may petition the district court to resolve entitlement to surplus funds.
Helpful Hints
- Keep copies of all foreclosure sale documents and trustee communications.
- Mark your calendar: you generally have 30 days from the notice date to file a surplus-fund claim.
- Junior lienholders should act quickly to protect lien priorities before the trustee pays out the trustor.
- Many county clerks offer online access to foreclosure records—check their website first.
- Search the State Treasurer’s unclaimed property site before funds escheat permanently to the state.