The bill amends Section 39-5-18 of the New Mexico Statutes to restrict the sale or assignment of redemption rights following a foreclosure. It allows the former defendant owner, their heirs, family or relatives within three degrees of consanguinity, a nonprofit housing organization, or a junior mortgagee or junior lienholder to redeem the property. The previous provision that permitted junior mortgagees or other junior lienholders to redeem the property has been removed. Additionally, junior mortgagees or junior lienholders are now prohibited from transferring, selling, or assigning their redemption rights to third parties.

The bill also clarifies the process for redemption, including the requirement for the purchaser of the real estate to respond to a petition for redemption within thirty days. It establishes that the district court will determine the necessary amount for redemption and the priority of redemption rights during a hearing. Furthermore, the definition of "date of sale" is updated to refer to the date the district court order confirming the special master's report is filed, and it specifies that the nine-month redemption period can be modified under certain provisions. Lastly, it clarifies that a trustee's sale under a deed of trust is not considered a sale under a court judgment or decree, and redemptions after such sales are governed by the Deed of Trust Act.

Statutes affected:
introduced version: 39-5-18