Albuquerque morning journal. [volume] (Albuquerque, N.M.) 1903-1926, 1919-01-09
To ASK REVISION
Of FORECLOSURE
OF MORTGAGE LAW
Real Estate Bureau Of the
Chamber of Commerce to
Request Legislature to Mod
fly Statute Now on Books,

The real estate bureau of the Cham.
Der of Commerce will propose to the
coming legislature the repeal of the
redemption feature Of the law relative
to the foreclosing OF MORTGAGES on real
estate, President w P. Metcalf of the
bureau announced yes erday. Prob
ably the law was enacted in the belief
that it would benefit the unfortunate
debtor who, unable TO meet his mort
gage note at maturity. might never
theiess be in a position TO pay it with
all additional costs within year or
so after. But it seldom Or never works
out that way. Practically If debtor
is unable to meet his hote at maturity
~he has also been unable to pay his in
terest promptly, to say nothing of his
taxes, and If the lender has been at all
lenlent which he usually has been,
the amount of interest, back taxes,
court dues and 10 per cent attorneys
fees mount up to such Il sum that re-
demption is quite unlikely and is sell
dom accomplished unless the original
amount of the loan Is very sman COM
pared with the actual value of the
property.
But the existence OF the redemption
feature makes it impossible for any
bona fide buyer to bid at the sale be-
cause he does not acquire full title to
the property until the time of redemp-
ton expires so the practical result is
that all property sold under foreclos.
ure with hardly an exception, is nee
esSarily bid in by the mortgage and
held by him for nine months or q
year before he can in turn soil it at
private sale and get his money out Of
it, LII nearly every case where the
right Of redemption is exercised It will
be found that the loan was far below
tho real value and some third party
acquires quit claim deed from the
debtor fora nominal sum and then
rcdcems the property to his own ad :
vantage. The debtor feeling his utter
inability, usually Is willing to accept 4
small amount in cash for what he con-
sidcrs dead horse SO far as he is con-
cerned and the speculator steps in
and reaps the advantage himself.
The members of the real estate bl-
real have frequently discussed this
matter at their monthly meetings, and
believe that the true interests Of the
public, as we'll as their own,' will be
promoted Dy the repe0l OF the re-
demption provision of the present law.
In case it should be repealed they
point out that Bona fide BUYERS will
appear and bid at every foreclosure
sale, thus furnishing Il sure market
and an accurate market for real es-
tate. Other states which haveN either
no redemption law or very short
period OF redemption have had this
experience and it is to be expected
that similar result s would follow here.
If the mortgage was small, the debtor
would stand n much better chance to
save something out of the wreck of
his fortunes than he does at present
and If the mortgage was large in pro-
portion to the selling value of the
property he would be saved the an
noyance of a deficiency judgment
which is now frequently taken in such
cases. They claim that while at first
sight 1t might appear that the present
law is designed to protect the debtor
against a >rapacious creditor. that in
fact it fails entirely OF its purpose In
that respect and that by reason of the
sure and accurate market afforded BY
bona fide sale without the privilege
of redemption,