New Mexico Foreclosures Rise Significantly in May

Irvine, California-based RealtyTrac reported that foreclosure starts in New Mexico rose 27 percent in May.  The firm released May foreclosure statistics today which showed default notices rose nationwide.

For the month 560 homeowners received a default notice, which is significantly higher than the 472 homes in April which went into foreclosure.

Of the 560 homes, only 50 are slated for foreclosure auction with 139 being repossessed by the bank.

A large majority of these homes will go up for short sales as banks see this as a more cost effective option to bank-owned sales. The average home up for short sale sells for $27,000 more than a bank-owned property.

Under the terms of a short sale, the homeowner agrees to sell the home for less than they owe on the mortgage, in exchange the lender often agrees to write-off the difference as a loss. If this seems like a viable option, a New Mexico short sale attorney can begin negotiations with the lender. This alternative to foreclosure however forces the individual to find different housing.

A homeowner can fight foreclosure or seek to stay in their homes by requesting a mortgage modification. When negotiating with a mortgage lender for a modification it is best to have a foreclosure attorney to guide you through the process and help reach an agreement with your lender.

Homeowners are advised to explore the alternatives to losing their homes. A New Mexico foreclosure lawyer can determine if you should challenge your default notice in court or declare personal bankruptcy.