Thanks in advance for the help!
Here is my situation:
Purchased redemption rights & quitclaim deed from the owner of property coming up for auction. The property is worth more than what is currently owed. If the auction goes higher than what is owed, who is entitled to the proceeds?
There are no other liens on the property other than the one that is foreclosing.
Property is in New Mexico.
NM Stat 48-10-15 ... surplus if any would appear to be due the trustor (mortgagor).
This rarely happens. If it does, make sure you have something in your agreement about who gets excess proceeds. Redemption rights are a tricky business, make sure to have e your ducks in a row.
@Tom Gimer Curious, does this really apply if the mortgagor has sold the property? I would think the assumption in that statute is that the mortgagor still owns it. I realize that's outside your state and you had to take the time to look it up, but generally.
@Wayne Brooks Notice my use of the words "would appear".
So if you look at the NM statute regarding redemption rights, the word "owner" is used and then the code goes on further to state D. As used in this section, the terms "owner", "junior mortgagee", "junior lienholder" and "purchaser" include their respective personal representatives, heirs, successors and assigns.
There is no such language in the provision regarding surplus.
That's not to say the current owner could not have an equitable claim against the trustor... but the way I read things the surplus goes to the borrower.
So, I understand if I only had the right of redemption the proceeds would go to mortgagor, but would the quitclaim deed change that?
My attroney has experience with this. Reach out and I can hook you up. I buy a ton of RR and have never had this come up.
Why not buy the property before auction? I assume not enough equity?
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