87506 is a gigantic and mixed zip code. Las Campanas, Nambe, and Tesque are generally great. Other neighborhoods range from middle to disastrous. Unforetunately, some agents and home-owners will tell you it is one of the great when it is disastrous.
Many of the foreclosed properties have been abandoned by people who got fooled-- moved in and then experienced the neighborhood.
Rule 1 Nambe if the bargain for great places, anbd you are not going to find one of these properties in Nambe. 90% of the owners don't have a mortgage. The other 10% think they are in heaven and will keep up their payments and you will pay full price. They will list for years and never take less than 90% of the listing price.
Tesuque is fabulously wealthy and nobody is getting foreclosed.
Las Campanas is gated neuveau rich, but the architecture is ridiculous pseudo Santa Fe style -- try Greek columns -- you might pick up a foreclosure.
Aldea is not Las Campanas and ridiculous -- if you want a nice place -- fork up the money for Nambe.
The probperty you looked at is probably trash -- the bank thinks you'll wise up and thus they asked you to sign that document.