Lenders in New Mexico can and do get deficiency judgments when the sale of the property does not satisfy the original mortgage loan. You can avoid filing bankruptcy, however, if you can do one of two things.
1. You can try to convince the bank to accept the proceeds of a short sale as payment in full of the outstanding balance of the mortgage loan; or,
2. Convince the bank that it will save money in Court costs and Attorneys fees if they agree to accept a "Deed in Lieu of Foreclosure". This situation arises when the lender agrees to accept a deed to the property instead of going through foreclosure proceedings.
Both options will need the cooperation of the former spouse, but you might be able to convince her by telling her that if she fails to cooperate, you will file a Petition for Contempt against her,
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