A deficiency judgment is typically in an amount equal to the difference between the funds received from a court sale of property and the balance remaining on a debt. Deficiency judgments are commonly issued when a property owner fails to pay amounts owed on a mortgage and the property securing the mortgage is sold to satisfy the debt, but the proceeds from the sale are less than the amount owed.
Deficiency judgments are not allowed in all states. In order to get a deficiency judgment in most states, the party owed money must file a suit for judicial foreclosure instead of just foreclosing on real property. However, some states allow a lawsuit for a deficiency after foreclosure on the mortgage or deed of trust. Local laws should be consulted for specific requirements in your area.
A New Mexico Complaint or Petition to Recover Deficiency after Sale under Trust Deed or Deed of Trust is a legal document filed by a lender or creditor seeking to recover the remaining balance owed on a mortgage or deed of trust after a property has been sold through foreclosure. This deficiency amount is the difference between the outstanding loan balance and the sale proceeds obtained from the foreclosure sale. In New Mexico, there are two main types of Complaint or Petition to Recover Deficiency after Sale under Trust Deed or Deed of Trust: 1. Judicial Foreclosure: In this type of foreclosure, the lender files a lawsuit in court to obtain a judgment and order of sale. If the property is sold at auction for less than the remaining loan balance, the lender can file a Complaint or Petition to Recover Deficiency to collect the shortfall amount from the borrower. 2. Non-Judicial Foreclosure: In New Mexico, non-judicial foreclosures are typically conducted through a power of sale clause in the deed of trust. When the property is sold at a trustee's sale, the lender may file a Complaint or Petition to Recover Deficiency if the sale proceeds are insufficient to satisfy the outstanding debt. To file a Complaint or Petition to Recover Deficiency after Sale under Trust Deed or Deed of Trust in New Mexico, the following steps are generally involved: 1. Identify the borrower and lender: The complaint should include the names and contact details of both parties involved in the foreclosure. 2. Provide property details: Include the legal description of the property, such as the lot of number, block number, subdivision name, and county where the property is located. 3. Outline the foreclosure process: Explain whether the foreclosure was conducted through judicial or non-judicial means, mentioning relevant dates, notices, and procedures followed. 4. Calculate the deficiency amount: Clearly state the remaining balance owed on the loan after deducting the proceeds from the sale. Provide a breakdown of how this amount was computed. 5. Request for deficiency judgment: Ask the court to award a judgment in the lender's favor for the deficiency amount. Support this request by citing applicable New Mexico statutes and case laws. 6. Provide supporting documentation: Attach copies of the deed of trust, promissory note, foreclosure notices, trustee's sale documents, and any other relevant evidence. 7. Serve the complaint: Serve a copy of the Complaint or Petition to Recover Deficiency after Sale under Trust Deed or Deed of Trust to the borrower and any other parties involved according to the New Mexico Rules of Civil Procedure. It is crucial to consult with an attorney familiar with New Mexico foreclosure laws when preparing a Complaint or Petition to Recover Deficiency after Sale under Trust Deed or Deed of Trust. They can guide you through the process, ensure compliance with legal requirements, and help maximize your chances of recovering the deficiency amount.A New Mexico Complaint or Petition to Recover Deficiency after Sale under Trust Deed or Deed of Trust is a legal document filed by a lender or creditor seeking to recover the remaining balance owed on a mortgage or deed of trust after a property has been sold through foreclosure. This deficiency amount is the difference between the outstanding loan balance and the sale proceeds obtained from the foreclosure sale. In New Mexico, there are two main types of Complaint or Petition to Recover Deficiency after Sale under Trust Deed or Deed of Trust: 1. Judicial Foreclosure: In this type of foreclosure, the lender files a lawsuit in court to obtain a judgment and order of sale. If the property is sold at auction for less than the remaining loan balance, the lender can file a Complaint or Petition to Recover Deficiency to collect the shortfall amount from the borrower. 2. Non-Judicial Foreclosure: In New Mexico, non-judicial foreclosures are typically conducted through a power of sale clause in the deed of trust. When the property is sold at a trustee's sale, the lender may file a Complaint or Petition to Recover Deficiency if the sale proceeds are insufficient to satisfy the outstanding debt. To file a Complaint or Petition to Recover Deficiency after Sale under Trust Deed or Deed of Trust in New Mexico, the following steps are generally involved: 1. Identify the borrower and lender: The complaint should include the names and contact details of both parties involved in the foreclosure. 2. Provide property details: Include the legal description of the property, such as the lot of number, block number, subdivision name, and county where the property is located. 3. Outline the foreclosure process: Explain whether the foreclosure was conducted through judicial or non-judicial means, mentioning relevant dates, notices, and procedures followed. 4. Calculate the deficiency amount: Clearly state the remaining balance owed on the loan after deducting the proceeds from the sale. Provide a breakdown of how this amount was computed. 5. Request for deficiency judgment: Ask the court to award a judgment in the lender's favor for the deficiency amount. Support this request by citing applicable New Mexico statutes and case laws. 6. Provide supporting documentation: Attach copies of the deed of trust, promissory note, foreclosure notices, trustee's sale documents, and any other relevant evidence. 7. Serve the complaint: Serve a copy of the Complaint or Petition to Recover Deficiency after Sale under Trust Deed or Deed of Trust to the borrower and any other parties involved according to the New Mexico Rules of Civil Procedure. It is crucial to consult with an attorney familiar with New Mexico foreclosure laws when preparing a Complaint or Petition to Recover Deficiency after Sale under Trust Deed or Deed of Trust. They can guide you through the process, ensure compliance with legal requirements, and help maximize your chances of recovering the deficiency amount.
