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| Michael Sanchez |
Santa Fe, NM- Senate Majority Leader, Michael S. Sanchez's (D-Valencia County-29) bill to assist New Mexico homeowners facing foreclosure passed Senate Judiciary Committee on Saturday, February 26, 2011 and is now headed to the Senate floor. Senate Bill 406, Mortgage Fair Foreclosure Act, is designed to facilitate loss mitigation between homeowners and mortgage holders, when possible, to avoid foreclosure. Mitigation may include modifying the loan, adding missed payments to the loan balance, and converting adjustable rate mortgage to a fixed rate. 
"The current economic climate has caused many homeowners to fall behind in their mortgage payments and confront the real possibility of losing their family homes," said Sen. Sanchez. "If given information about opportunities to renegotiate their loans, many will avoid foreclosure and possible homelessness." Many New Mexico homeowners have found themselves unable to keep up with mortgage payments on "toxic loans" they accepted with teaser rates, negative amortization or subprime interest rates and terms. Additionally, with the depression in the housing market and the drop in home values, many homeowners now owe more money on their homes than they are worth. It has been estimated that 85% of New Mexico homeowners facing foreclosure actions do not or cannot afford attorneys to represent them in court. "Unfortunately, many homeowners have lost their homes in foreclosure actions because they had no one advocating for them or they were unaware of any opportunities to renegotiate their loans and keep their homes. This bill will protect consumers by leveling the playing field," said Sen. Sanchez.
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