Foreclosure Rights for Renters in New Mexico

If you are a renter in New Mexico and you’ve learned that your landlord’s property is facing foreclosure, you may feel worried or uncertain about what comes next. Understanding your rights during a foreclosure can help you stay informed and make decisions that protect your housing. New Mexico law has specific protections in place for tenants caught up in foreclosures, and being aware of these laws can help you avoid unnecessary disruption or eviction.

What Happens When a Rented Property Is Foreclosed in New Mexico?

When a landlord loses their property to foreclosure in New Mexico, the new owner or lender may decide to keep the existing tenants or require them to move out. However, tenants have rights both under state law and federal protections. In most cases, you cannot be evicted without proper notice and legal proceedings.

Key Rights and Protections for Renters

• 90-Day Written Notice Required: Under the federal Protecting Tenants at Foreclosure Act (PTFA), most renters must receive at least 90 days’ written notice before being required to move out, even if the property is sold at foreclosure.
• Duration of Your Lease: If you have a valid lease, the new owner generally must honor it until it expires, unless they plan to move in themselves (“owner-occupant”). Month-to-month tenants are usually entitled to the 90-day notice only.
• Eviction Process: Evictions after foreclosure must follow the rules of the New Mexico Uniform Owner-Resident Relations Act, which means only a court order can remove a tenant – not simply a demand from the new owner.
• Security Deposits: The new owner becomes responsible for your security deposit. You may request the transfer or return if you’re asked to leave.

Knowing these rights can prevent you from being forced out unfairly or on very short notice.

Official Eviction & Rental Protections

In New Mexico, all residential tenancies, including those affected by foreclosure, are regulated by the Uniform Owner-Resident Relations Act (NMSA 1978, §§ 47-8-1 to 47-8-52)^[1]. The official body responsible for handling residential eviction cases is the New Mexico State Courts - Landlord/Tenant. Any eviction after foreclosure must go through this process.

Essential Forms Used in Foreclosure-Related Evictions

• Petition by Owner for Restitution (Form 4-904): This is the landlord's official court request to remove a tenant. It is only valid after you have received proper notice.
  Example: The new owner after foreclosure files this form to begin eviction proceedings. You would receive a copy along with a court date.
  Download Petition by Owner for Restitution (Form 4-904)
• Answer to Petition by Resident (Form 4-905): If you receive a petition, you can submit this form to the court to explain your side or assert your protections (like the 90-day rule or existing lease).
  Example: You want to let the judge know you’re entitled to a 90-day notice. Fill out and file this form with the court.
  Download Answer to Petition by Resident (Form 4-905)

For more details, all Landlord-Tenant forms are available on the New Mexico Courts Landlord-Tenant Forms page.

Steps for Tenants Facing Foreclosure

If you receive notice about foreclosure or receive an eviction paper, here’s what you can do:

• Verify the legitimacy of all notices and ask for them in writing.
• Check your lease terms and keep a record of all communications.
• File an Answer to Petition by Resident (Form 4-905) with the court before the deadline if you receive court papers.
• Attend your court hearing and bring all relevant documents (lease, notices, payment records).
• Contact legal aid or housing resources if you need help navigating the process.

FAQ: Foreclosure and Renters’ Rights in New Mexico

1. Can I be evicted right away after my rental is foreclosed?
   No. Most tenants in New Mexico are entitled to at least 90 days’ notice or until the end of their lease, depending on circumstances.
2. What happens to my security deposit if my landlord loses the property?
   The new owner must take over responsibility for your security deposit. Requests for its return should be made in writing to the new owner if you move out.
3. How do I respond if I get court papers to move out?
   You should use the Answer to Petition by Resident (Form 4-905) to reply, stating your rights or any defenses—such as the need for 90 days’ notice or a valid lease.
4. Who handles eviction cases for tenants in New Mexico?
   The New Mexico State Courts handle eviction cases. You can find resources and forms on their official Landlord/Tenant page.

Key Takeaways for Tenants

• Renters in New Mexico affected by foreclosure are entitled to at least 90 days’ notice (or more for a valid lease).
• Only a court can order an eviction; tenants cannot be removed without legal process and written notices.
• Know and use official court forms to protect your rights during eviction proceedings.

Need Help? Resources for Renters

• New Mexico Courts - Landlord/Tenant Forms and Information: Find all forms and guides for eviction, responses, and your rights.
• New Mexico Legal Aid: Free legal help for low-income renters facing eviction or foreclosure-related issues.
• New Mexico Mortgage Finance Authority: Resources and programs for renters and homeowners in foreclosure situations.

---

1. Uniform Owner-Resident Relations Act (NMSA 1978, §§ 47-8-1 – 47-8-52)
2. Protecting Tenants at Foreclosure Act (PTFA)

Categories

Renter Rights & Legal Protections Lease Agreements & Renewals Rent, Fees & Security Deposits Moving In: Inspections & Disclosures Moving Out & Ending a Lease Maintenance, Repairs & Habitability Health & Safety Standards Evictions & Lease Violations Roommates, Subletting & Shared Housing Discrimination & Fair Housing Laws Accessibility & Disability Accommodations Utilities, Services & Billing Affordable Housing & Rental Assistance Rent Control & Rent Stabilization Privacy Rights & Landlord Entry Security, Locks & Emergency Protections Dispute Resolution & Legal Aid Retaliation & Harassment Protections Mobile Home & Manufactured Housing Rights Special Housing Types & Situations