New Mexico Right of Redemption

[Nick Paul]

I'm trying to find someone with knowledge about the Right of Redemption in a judicial foreclosure state (I live in New Mexico). I would like to better understand the process of buying the right of redemption. I've had several foreclosure deals lately that were expected to come to market but an investor purchased the right of redemption and subsequently was able to secure owning the house before the property was listed on the open market as a foreclosure sale. I'd appreciate anyone with knowledge on this process allowing me to ask questions.

Thanks! 

[David Torres]

@Nick Paul great question and I am glad you posted it!  I have purchased several redemption rights deals.  They can be pretty sticky in NM, but also profitable.

Here is the quick and dirty rundown of how it goes in NM:

1. Seller gets foreclosed on gets a notice of lis pendens
2. House gets sold at auction (usually on the county courthouse steps)
3. Special Master Submits Report
4. Judge approves sale (this is when the clock starts for the redemption period)
5. Property owner has the right to redeem the property for 30 days (or assign their rights)

There are a ton of nuances and ways to get burned (I.E. Owner selling redemption rights to 2 people OR shady operators forging docs).  Luckily, my wife is an Attorney and has helped me work through a lot of the major problems.

Feel free to reach out and I can give you some more clarification.