Maria purchased a home in Albuquerque using a deed of trust. She has since defaulted on her loan payments. Under the New Mexico Deed of Trust Act, which party has the authority to conduct the non-judicial foreclosure sale?
Correct Answer
C) The trustee named in the deed of trust, who conducts the sale after statutory notice
Under the New Mexico Deed of Trust Act (NMSA 1978, Chapter 48, Article 10), the trustee — the neutral third party named in the deed of trust — holds the power of sale and is authorized to conduct the non-judicial foreclosure sale after providing the required statutory notices. The trustee acts on behalf of the beneficiary (lender) but must follow the procedural requirements set forth in the Act, including proper notice to the trustor and publication of the sale.
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Related Concepts
Predatory lending refers to unfair, deceptive, or abusive lending practices that impose unjustified terms on borrowers, often targeting vulnerable populations. It includes practices like excessive fees, inflated appraisals, and unnecessary refinancing.
RESPA is a federal law that requires lenders to provide borrowers with information about settlement costs, prohibits kickbacks and referral fees, and limits escrow account deposits. It applies to federally related mortgage loans.
The secondary mortgage market is where existing mortgage loans are bought and sold between lenders, investors, and government-sponsored enterprises (GSEs) like Fannie Mae, Freddie Mac, and Ginnie Mae.
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