New Mexico court program offers free foreclosure mediation, now serving eight judicial districts

The Second Judicial District Court’s Foreclosure Settlement Program, or FSP, provides no-cost settlement facilitation for residential mortgage foreclosure cases and has expanded to serve eight of New Mexico’s 13 judicial districts, presenters told an online New Mexico Courts webinar.

Marisol, supervisor of the Foreclosure Settlement Program, Second Judicial District Court, said the effort originated in 2014 as the Mortgage Alternatives Program (MAP) and was reorganized in 2016 into the FSP to operate “in a more efficient and effective manner.” She cautioned, “there's nothing in our presentation that should be considered legal advice.”

The program places litigation on hold while parties participate. Amy Mykoper Center, a settlement facilitator with the FSP, said, “the litigation is placed on pause,” explaining that while a case is in the program the bank cannot sell the property and no one can be evicted. That pause begins after the FSP files a notice or order of referral in a newly filed residential foreclosure case.

Why it matters: the FSP provides a neutral, confidential forum for homeowners, heirs and mortgage companies to discuss options including reinstatement, payoff, loan modification, repayment plans, short sales or deeds in lieu of foreclosure. Presenters said the process can level the information gap for homeowners who participate pro se by…