Finance
In New Mexico, which is typically TRUE about the non-judicial foreclosure (trustee's sale) process?
AIt takes longer than judicial foreclosure
BIt is generally faster than judicial foreclosure because it does not require court proceedings✓ Correct
CIt always results in a deficiency judgment
DIt requires the homeowner's consent
Explanation
Non-judicial foreclosure via a deed of trust is generally faster than judicial foreclosure because it does not require court proceedings. New Mexico's process involves a notice period and public auction by the trustee.
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Key Terms to Know
Deed of Trust
A security instrument used in many states instead of a mortgage, involving three parties: borrower (trustor), lender (beneficiary), and a neutral trustee.
DeedA written legal instrument used to transfer ownership of real property from one party (grantor) to another (grantee).
AmortizationThe gradual repayment of a loan through scheduled periodic payments that cover both principal and interest.
Adjustable-Rate Mortgage (ARM)A mortgage with an interest rate that changes periodically based on a financial index, usually after an initial fixed-rate period.
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