Pre-Foreclosures in New Mexico Drop, But Struggles Remain for Homeowners

The numbers tell one story. The people behind them tell another.

In June 2024, 83 homeowners in New Mexico received pre-foreclosure notices, signaling the early stages of losing their homes. That number is down significantly—by 23.15% from May’s 108 cases and even more dramatically, by 41.13% compared to June of last year, when 141 homes were on the brink of foreclosure.

At a glance, this might seem like good news. Fewer pre-foreclosures could suggest a recovering housing market, greater homeowner stability, or even successful intervention programs keeping families afloat. But in cities and towns across New Mexico, the lived reality is more complicated.

Behind the Numbers: Hardships That Don’t Show Up in Data

Lisa Martinez never thought she’d be on the verge of losing the South Valley home she moved into nearly two decades ago. But when her rent-to-own deal suddenly fell through in April 2024, she found herself fighting to hold onto a place where she raised two children.

“I did everything right,” she says, sitting with a folder of mortgage statements and demand letters. “I never missed a payment. And still, here I am, trying to prove I deserve to stay in my own home.”

Martinez’s situation reflects a growing problem: In New Mexico, it’s not just about having a job—it’s about whether that job pays enough to keep up with housing costs. Rising property taxes, inflation, and lingering effects from pandemic-related hardships continue to haunt many working-class homeowners.

Carlos Reyes, a construction worker in Española, saw his hours cut just as his adjustable-rate mortgage increased. The bank told him he had 90 days to catch up on payments or risk foreclosure proceedings. “I’m not looking for sympathy,” Reyes says. “I just need a chance to catch up.”

A Declining Crisis or Just a Temporary Lull?

The current downturn in pre-foreclosure filings is part of a broader multi-year trend. In 2010, New Mexico saw 9,568 pre-foreclosures, a staggering figure driven by the aftershocks of the 2008 financial crisis. By 2021, that number had dropped to 602. The pandemic triggered a brief resurgence—1,527 in 2020—but since 2021, pre-foreclosure numbers have steadily declined.

Yet, for those facing pre-foreclosure today, history offers little comfort. The forces driving people to the edge of losing their homes are still present, albeit in different forms. Inflation remains high, wages aren’t keeping pace, and the state’s affordable housing stock is shrinking.

“We see fewer foreclosure filings,” says housing advocate Patricia Gomez, “but that doesn’t mean people aren’t struggling. They are—many just haven’t reached the tipping point yet.”

What Comes Next?

If current trends hold, 2024 could be one of the lowest years for pre-foreclosures in recent history. Through June, New Mexico has recorded 506 pre-foreclosures, putting it on track for fewer than 1,000 cases by year’s end.

But experts warn that the scars of financial instability run deep. Many homeowners who avoided foreclosure did so by taking on higher-interest emergency loans, by pulling from retirement savings, or by receiving temporary relief from federal assistance programs, some of which have expired.

For residents like Martinez and Reyes, the struggle is far from over. They represent the faces behind the statistics—working families caught in an economic tightrope act, where one misstep, one financial setback, could mean the loss of their home.

“People think foreclosure only happens when you make bad choices,” Martinez says. “But I did everything right, and still, I have to fight for my home. How is that fair?”

The data suggests New Mexico’s housing crisis isn’t getting worse. But for many, stability remains fragile. Whether pre-foreclosures continue to decline or surge again will depend on factors beyond the numbers—policy interventions, economic shifts, and, most importantly, the ability of everyday New Mexicans to keep up with the rising costs of simply having a home.