N.M. Stat. § 45-3-814
Encumbered assets.
If any assets of the estate are encumbered by mortgage, pledge, lien or other
security interest, the personal representative may pay the encumbrance or any part
thereof, renew or extend any obligation secured by the encumbrance or convey or
transfer the assets to the creditor in satisfaction of his lien, in whole or in part, whether
or not the holder of the encumbrance has presented a claim, if it appears to be for the
best interest of the estate. Payment of an encumbrance does not increase the share of
the distributee entitled to the encumbered assets unless the distributee is entitled to
exoneration.