Summary:

 House Bill 583 (HB 583) restricts the sale or assignment of redemption rights.  

Legislation Overview:

 House Bill 583 (HB 583) amends Section 39-5-18 NMSA 1978 as follows:

A.	After sale of real estate pursuant to the order, judgment or decree of foreclosure in the district court, the real estate may be redeemed (reclaimed, by means of payment or other means) by the former defendant owner of the real estate, relatives within three degrees of consanguinity (individuals descended from the ancestor), a nonprofit housing organization or a junior mortgagee or junior lienholder.

B.	A junior mortgagee or junior lienholder may exercise redemption rights (rights to reclaim) only to protect a secured financial interest and may not transfer, sell, or assign redemption rights to a third party.




 

Current Law:

 Current law states that if the former defendant owner does not redeem the real estate, each junior mortgagee or junior lienholder has a right to redeem the real estate. The order of priority of such redemption rights are to be the same priority as the underlying mortgages or liens, as set forth in the court order, judgment or decree of foreclosure or as otherwise determined by the court.