New Mexico Homestead Laws

New Mexico’s homestead exemption statute protects the homeowner’s equity in their primary residence from judgment creditors and bankruptcy trustees. A property owner can exempt up to $150,000 in equity or $300,000 if a spouse has passed within the previous two years.

The exemption applies to a property owner’s “primary domicile,” which can include:

• Single-family homes
• Mobile homes
• Trailers and RVs
• Outbuildings or sheds

Any building used as a primary residence can qualify, even if the building does not comply with other housing regulations. New Mexico residents who do not own a homestead can claim a $15,000 real or personal property exemption in place of the state homestead exemption.

These values are adjusted every two years. Homeowners should consult a real estate attorney to ensure they are using the correct figures.

Claiming the Homestead Exemption

If you need to claim the homestead exemption in a bankruptcy, you only need to meet the other requirements for a New Mexico bankruptcy filing. New Mexico law automatically protects your homestead exemption. If you want the property tax exemption, you must claim it through the county assessor’s office when you receive your notice of property value each year. To protect your homestead from any other collection or garnishment, you must file a claim of exemption within ten days of the notice of execution of lien.

Homestead Exceptions

Your state of New Mexico homestead protection does not extend to certain types of liens and judgments. New Mexico statute lists these exceptions to the homestead exemption:

• State and federal income tax liens
• Garnishment and perfected liens of secured creditors
• Recorded mortgages
• Mechanic’s and contractor’s liens

If you have questions about eligibility or exemption amounts, speak with a New Mexico property attorney.

Get Legal Advice From a New Mexico Bankruptcy Attorney

New Mexico state laws on homestead exemptions, family exemptions, and property tax exemptions can be confusing for homeowners. The distinctions are critical when tax time comes around. Consider consulting either a New Mexico bankruptcy attorney or a New Mexico real estate attorney for assistance if you have any questions about either situation.