A qualifying broker in New Mexico is advising a buyer client about the differences between a deed of trust foreclosure and a mortgage foreclosure in New Mexico. Which of the following statements about foreclosure in New Mexico is NOT accurate?
Correct Answer
C) After a non-judicial deed of trust sale, the borrower retains a one-year statutory right of redemption
Option C is NOT accurate. Under the New Mexico Deed of Trust Act (NMSA 1978, Chapter 48, Article 10), there is no statutory right of redemption after a completed non-judicial foreclosure sale under a deed of trust. Once the trustee's sale is completed, it is final. There is no one-year (or any other) post-sale redemption period for deed of trust foreclosures in New Mexico. This is the inaccurate statement the question asks candidates to identify.
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Related Topics & Key Terms
Key Terms:
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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