The New Mexico Senate has passed a memorial that calls for a creation of a task force to develop a set of recommendations to the legislature on how to avoid the issue of improper home foreclosures.
“Passage of this legislation is a victory for all New Mexico homeowners,” said Senate Memorial 11 (SM 11) Sponsor Senator Michael Padilla (D-14-Bernalillo). “This legislation will bring all aspects of the home loan mortgage industry together to avoid improper foreclosures.”
The task force will be made up of housing corporation representatives, independent living resources, community bankers, mortgage bankers, senior citizens organizations, the New Mexico Mortgage Finance Authority, veteran’s organizations, the Municipal League, the Association of Counties, title offices, local homeowners, New Mexico bar associations that deal with real estate law, and a member of the Judiciary that deals with real estate law.
According to the United South Broadway Corporation, between 2009 and 2012, New Mexico homeowners lost $2.1 billion dollars in equity. In 2013, 11,000 homes across the state were more than 60 days delinquent.
Many foreclosures have taken place because of improper processing of loans by mortgage holders. With the proper handling and processing, foreclosures can be avoided. Additionally, understaffed loan-servicing personnel have made it difficult for homeowners to negotiate reasonable loan terms to prevent foreclosure in a timely fashion.
“Foreclosure activity has dislocated families, destabilized communities, increased vandalism and crime in neighborhoods with abandoned properties, increased homelessness, lowered property values and resulted in a decreased tax base leading to loss of funding for vital public services,” added Sen. Padilla. “New Mexicans continue to lose their homes needlessly because of improper foreclosures. The state is part of a multi-state and multi-billion dollar agreement with several of the nation’s largest banks to settle claims that the banks improperly foreclosed on homeowners. This will be a great step in the right direction to assure New Mexicans are not unnecessarily displaced.”