New Mexico’s Pre-Foreclosure Rates Show Sharp Decline in 2024 — But Vulnerable Homeowners Still Struggle

An Uneven Recovery in the Land of Enchantment

In September 2024, just 57 homes in New Mexico entered pre-foreclosure, an administrative step that begins the legal process of repossessing a property when a homeowner falls behind on their mortgage. That number may seem low, especially in a year marked by persistent inflation and economic uncertainty. And indeed, it is, down a staggering 65.66% from the same time last year, when over 160 homes across the state were on the verge of being taken back by lenders.

On paper, this looks like progress. Digging deeper, though, reveals a more complicated and uneven story, one where the sharp reduction in filings doesn’t necessarily mean fewer families are struggling, but rather reflects broader shifts in housing markets, lender behavior, and an ever-widening affordability chasm that continues to swallow the state’s most vulnerable residents.

From Peaks to Plateaus: The Long Journey Downhill

To understand where New Mexico’s pre-foreclosure market stands today, it’s worth revisiting its volatile past. In the wake of the Great Recession, the state experienced a tsunami of mortgage distress. By 2010, New Mexico topped out at a grim high: 9,310 pre-foreclosure filings in a single year. That crisis, fed by easy lending and widespread job loss, took nearly a decade to recede.

Since then, filings have largely declined. By 2021, buoyed by pandemic-era forbearance programs and stimulus checks, the number of pre-foreclosures dropped to just 807 statewide. But even as the raw totals dropped, new pressures quietly began to reemerge.

Last year, pre-foreclosures climbed to 1,781. This year, the pace has slowed again, with only 740 properties entering pre-foreclosure through the end of September. That’s 45% fewer filings than the same period last year, placing 2024 on track to be the lowest year in two decades outside of the pandemic years.

But the story behind these numbers says less about the resilience of homeowners and more about shifting lender strategy and economic exhaustion.

Month-Over-Month: A Surge in Distress

Despite the year-over-year drop, the month-over-month numbers tell a different story. In August 2024, New Mexico recorded 42 new pre-foreclosure. In September, that number jumped to 57, an increase of 35.71% in just a month.

While one month does not make a trend, such a sizable leap raises concerns about what’s coming, especially with inflation still pressuring household expenses, and pandemic-era savings drying up.

“It’s Not Just a Home—It’s Everything”

For low-income families like the Rodriguezes in Clovis, mortgage relief programs have ended, but the struggle hasn’t. Carlos Rodriguez, 59, was furloughed from his warehouse job in 2020 and only recently found part-time work. “We used our savings to keep the house,” he says. “Now we’re behind again, and the bank’s notices are getting more serious.”

His wife, Maria, tears up recalling the day their daughter asked if they would have to move. “She’s in high school. She’s supposed to think about prom and college, not whether we’ll be on the street,” she says.

The Rodriguezes are part of a quiet but persistent population in New Mexico falling behind, not dramatically or in waves, but slowly, almost invisibly.

Final Thought

The decline in pre-foreclosure filings across New Mexico is real and statistically significant. But behind the math, the emotional and financial toll of housing instability remains, especially for working-class and marginalized families.

Until wages rise as steadily as housing costs, and until safety nets are broadened beyond numerical thresholds, the calm in New Mexico’s real estate data may be more fragile than it appears.