The bill amends Section 39-5-18 of the New Mexico Statutes to restrict the sale or assignment of redemption rights in foreclosure cases. It allows the former defendant owner of the real estate, 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 after a foreclosure sale. The bill specifies that junior mortgagees or junior lienholders may only exercise redemption rights to protect a secured financial interest and are prohibited from transferring, selling, or assigning these rights to third parties.

Additionally, the bill clarifies the process for redemption, including the requirement for a petition to be filed in the district court and the priority of redemption rights. 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 reiterates that the nine-month redemption period can be modified as per existing provisions. The bill also states that a trustee's sale under a deed of trust is not considered a sale under a court judgment or decree, and such redemptions are governed by the Deed of Trust Act.

Statutes affected:
introduced version: 39-5-18