A New Mexico homeowner is entitled to a homestead exemption of $60,000. If the house is held jointly then each homeowner may claim the exemption for a total of $120,000. That means that if an individual homeowner has $60,000 or less in equity in the home ($120,000 for joint owners) and continues to make regular payments on the mortgage then the homeowner is unlikely to be forced to sell his or her home as part of the bankruptcy proceeding. However, if the homeowner has more than $60,000 worth of equity in the home then the bankruptcy judge may order that the home be sold and that the some of the money be used to pay unsecured creditors.
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This article is intended to be helpful and informative. But even common legal matters can become complex and stressful. A qualified foreclosure and alternatives lawyer can address your particular legal needs, explain the law, and represent you in court. Take the first step now and contact a local foreclosure and alternatives attorney to discuss your specific legal situation.