Disclaimer: This article is for educational purposes and does not constitute legal advice. Consult a licensed attorney in New Mexico for guidance.
Detailed Answer
When co-owners face a foreclosure hearing, selling the property beforehand can preserve equity and prevent a public trustee sale. Under
- Confirm Ownership Interests: Review the deed and title report. Ensure all co-owners’ names and ownership percentages are accurate. A clear title reduces closing delays.
- Obtain Payoff Quotes: Request a payoff statement from the mortgage servicer and any junior lienholders. Verify the total amount due, including accrued interest and fees. This figure sets your minimum sale price to avoid deficiency.
- Address Repairs and Maintenance: Walk through the property. Complete essential repairs—plumbing, roof leaks, electrical safety. Presenting a well-maintained home enhances market value and quickens sale.
- Order a Title Search: A preliminary title report identifies liens, easements, or judgments. Clearing title issues ahead of listing streamlines escrow and closing.
- Gather Documents: Compile the property survey, recent tax bills, homeowners’ association documents (if any), and past utilities statements. Buyers and lenders expect these in escrow.
- Hire a Real Estate Agent: Select an agent experienced in short-turnaround sales and foreclosure risk. They will prepare a Comparative Market Analysis (CMA) and list the property quickly.
- Set the Listing Strategy: Price competitively based on the CMA and payoff figures. Discuss marketing tactics—online listings, open houses, investor outreach—to attract offers fast.
- Monitor the Foreclosure Timeline: Under NMSA 48-5-802, the public trustee must publish sale notices at least 30 days before auction. Coordinate with your agent to accept an offer before the auction date. Deposits and signed contracts can halt the sale process.
- Coordinate Closing: Once you accept an offer, work with the title company and lender for a timely closing. Ensure the sale proceeds pay off all liens in the correct order of priority.
Helpful Hints
- Communicate regularly with all co-owners. Written agreement on price and timeline prevents disputes.
- Consider a “short sale” option if the payoff exceeds market value; lender approval is necessary.
- Lock in an interest rate if you plan to buy another property soon after sale.
- Check for any special assessments or property tax delinquencies before listing.
- Keep copies of all notices and correspondence with the public trustee to track deadlines.