Property Ownership

In New Mexico, which party in a deed of trust holds 'bare legal title' during the loan term?

AThe beneficiary (lender)
BThe trustee (neutral third party)✓ Correct
CThe trustor (borrower)
DThe title company

Explanation

In a New Mexico deed of trust, the trustee holds bare (naked) legal title during the loan period as security for the loan. The trustor (borrower) holds equitable title and rights of possession. The beneficiary (lender) holds the beneficial interest.

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