Under New Mexico law, what is the primary security instrument used to finance real property purchases, and what type of foreclosure process does it authorize?
Correct Answer
D) A deed of trust, which authorizes non-judicial foreclosure by the trustee
Under the New Mexico Deed of Trust Act (NMSA 1978, Chapter 48, Article 10), the deed of trust is the primary security instrument used in New Mexico real estate financing. It involves three parties — the trustor (borrower), the beneficiary (lender), and the trustee — and authorizes non-judicial foreclosure, meaning the trustee can foreclose and sell the property without filing a lawsuit in court, following the statutory notice and sale procedures.
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Related Topics & Key Terms
Key Terms:
Related Concepts
TILA is a federal law that requires lenders to disclose the true cost of credit to borrowers, including the annual percentage rate (APR), total finance charges, and loan terms. It is implemented by Regulation Z.
A trustee sale is a type of foreclosure where a trustee, appointed under a deed of trust, sells the property at auction to satisfy the debt.
Usury is the practice of charging an interest rate that exceeds the maximum rate permitted by state law. Usury laws protect borrowers from excessive interest charges on loans.
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