Finance
A New Mexico borrower who is 60 days past due on their mortgage has likely received a:
ANotice of foreclosure sale
BNotice of default from the lender✓ Correct
CCertificate of foreclosure completion
DA demand from the NMREC
Explanation
A notice of default is typically sent by the lender after a borrower is significantly delinquent (often 30–90 days past due). It formally notifies the borrower of the default and may initiate the foreclosure process.
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Key Terms to Know
Private Mortgage Insurance (PMI)
Insurance required by lenders on conventional loans with less than 20% down payment, protecting the lender — not the borrower — against default.
Debt-to-Income Ratio (DTI)A lender's measure of a borrower's monthly debt obligations relative to their gross monthly income, used to evaluate loan eligibility.
Discount PointsPrepaid interest paid to a lender at closing to reduce the mortgage interest rate, with each point equal to 1% of the loan amount.
Pre-ApprovalA lender's conditional commitment to loan a specific amount to a borrower, based on verified income, credit, and assets.
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