The State of New Mexico is taking action to help New Mexican homeowners avoid foreclosure with the launch of a free housing counseling program. In partnership with United South Broadway Corporation (USBC), this initiative offers free, government-funded housing counseling and legal assistance to New Mexico homeowners across the state who are struggling with their mortgage payments or are at risk of foreclosure.
Eligible homeowners can access HUD-certified housing counseling and legal services through USBC to navigate their foreclosure options, including loan modifications, mediation, and loan reinstatement. This program provides expert assistance to help homeowners stay in their homes and regain financial stability.
“Many homeowners across New Mexico face significant financial challenges, and we are pleased to offer this vital service to help families keep their homes," said Diana Dorn-Jones, Executive Director at USBC. "Through free housing counseling and legal support, we are helping families avoid foreclosure, get back on track, and protect their financial futures."
To be eligible, homeowners must reside in New Mexico and face challenges with their mortgage payments or foreclosure. There are no income caps for housing counseling services, while legal representation is available for income-qualified homeowners.
For more information on how to access free housing counseling and legal services, visit USBC's website or call (505) 764-8867 or 575-449-8930 for a free consultation.
This state-sponsored initiative ensures that homeowners receive the support they need to stay in their homes during times of financial difficulty.
About United South Broadway Corporation
Founded in 1986, United South Broadway Corporation (USBC) is a non-profit community development corporation committed to revitalizing New Mexico's historic neighborhoods and increasing the availability of safe, affordable housing for low- and moderate-income homebuyers. As New Mexico's leader in foreclosure prevention, USBC offers free housing counseling and legal services to homeowners facing mortgage difficulties. Beyond housing, USBC is dedicated to promoting fair housing, fair lending, crime prevention, financial literacy, and opportunities for youth. USBC also offers anti-racism training through the Anti-Racism Training Institute of the Southwest (ARTI) to address institutional racism and foster healthy, inclusive communities. Through grassroots advocacy and direct support, USBC helps communities across the state prosper by empowering residents to find and implement local solutions to local challenges.
The Statewide Court-Ordered Foreclosure Settlement Program (FSP) provides a uniform yet flexible approach to resolving residential mortgage foreclosure cases throughout New Mexico. The facilitation services provided by FSP are provided at no cost to the parties through the support of the New Mexico Legislature. The Legislature has provided funding for FSP through the New Mexico Regulation and Licensing Department (NMRLD) mortgage regulatory fund and significantly benefits New Mexican families and communities. Settlement of residential foreclosure cases benefits the parties, the court, and New Mexican communities.
The FSP settlement facilitators are court employees with subject matter expertise in residential mortgage foreclosure cases, ensure transparency and meaningful participation throughout the case. Through the FSP facilitators' subject matter knowledge and experience in settling residential foreclosure cases, the FSP can bring the parties together through telephonic status conferences and in-person settlement facilitation to resolve the residential foreclosure case. The paths toward settlement of residential mortgage loan foreclosures largely depend on the federal rules and regulations governing each specific mortgage loan and each homeowner’s personal and financial situation.
Eligibility: A foreclosure case can be referred to the FSP when a Plaintiff seeks foreclosure on a residential mortgage loan for a dwelling with four or fewer units if the owner lived in one of the units when the mortgage originated.
Process: The FSP Attorney Supervisor regularly creates a report to identify residential mortgage foreclosure cases to refer to the FSP and then files a Notice of Referral to FSP for eligible cases. This Notice of Referral: (1) stays the case; (2) sets a deadline for the defendant/homeowners or heirs to watch an informational video and complete a confidential homeowner information form; (3) provides information about deadlines, obligations of the parties, and the expectation of good faith participation; and (4) provides a list of resources for housing counseling and legal services. If the defendant/homeowner completes the requirements, they will remain in the program where they can negotiate a potential settlement depending upon their desire to keep or exit the home, the options available under their specific loan, and their unique financial circumstances.
The FSP has successfully expanded foreclosure settlement facilitation services to the following districts: 3rd Judicial District, 12th Judicial District, 6th Judicial District, 7th Judicial District, 9th Judicial District, 8th Judicial District, and the 5th Judicial District. The FSP website contains more detailed information about the program, or you can contact the FSP program at (505) 841-7626.
