Tax Foreclosure in New Mexico: What Homeowners Need to Know
A guide from AuctionBlock.org — a mission-driven company dedicated to foreclosure prevention education
New Mexico uses a property tax delinquency system that can lead to a tax deed through a judicial proceeding. The county sells the property, not a lien, after obtaining a court order.
How It Works
Property taxes in New Mexico are collected by the county treasurer. Under NMSA 1978, § 7-38-50 et seq., when taxes become delinquent, the county treasurer sends notice to the property owner. Penalties (1% per month, up to 5%) and interest (1% per month) accrue on the unpaid amount.
After taxes remain delinquent for 3 years, the county can petition the district court for an order to sell the property (NMSA § 7-38-65 et seq.). The court must approve the sale, and the property is sold at a public auction.
Redemption Period
Under NMSA § 7-38-70, the property owner can redeem the property by paying all delinquent taxes, penalties, interest, and costs before the sale date. Once the property is sold, there is generally no post-sale redemption period. However, the property owner can challenge the sale in court within certain timeframes if proper procedures were not followed.
Key Programs and Exemptions
Head of Family Exemption: Under NMSA § 7-36-7, qualifying heads of household may receive a property tax exemption on the first $2,000 of assessed value of their primary residence. Apply through your county assessor.
Veterans Exemption: Under N.M. Const. Art. VIII, § 5 and NMSA § 7-37-5, qualifying veterans may receive a property tax exemption on the first $4,000 of assessed value. Disabled veterans with a 100% rating are exempt on the full value. Apply through your county assessor.
Low-Income Property Tax Rebate: Under the Taxation and Revenue Department's programs, qualifying low-income homeowners may apply for a property tax rebate. Check with the New Mexico Taxation and Revenue Department for current eligibility.
Where to Get Help
- New Mexico Legal Aid: Provides free legal services. Call (505) 243-7871 or 1-866-416-1922, or visit newmexicolegalaid.org.
- HUD-Approved Housing Counselors: Call 1-800-569-4287 or visit hud.gov/counseling.
Take Action
New Mexico has no post-sale redemption, so acting before the auction is essential. Contact your county treasurer immediately if you are behind on property taxes.
Visit auctionblock.org/get-help for free resources and referrals.
Disclaimer: This guide is for educational purposes only and does not constitute legal advice. Laws and programs change. Verify current rules with your county treasurer or a licensed attorney. AuctionBlock.org is a mission-driven company.