Deed of Trust - New Mexico

DEED OF TRUST

State of New Mexico

WHEN RECORDED RETURN TO:
[NAME]
[ADDRESS]
[CITY, STATE ZIP]

Date: [DATE]
Document Number: _________________ (County Clerk's Use)
Property Address: [PROPERTY ADDRESS, CITY, NM ZIP]
Parcel ID: [PARCEL ID]

IMPORTANT NOTICE - FORECLOSURE REQUIREMENTS

Choose the foreclosure route from the loan and property facts. A creditor foreclosing a home loan as defined in NMSA § 58-21A-3(J) must use judicial foreclosure under § 58-21A-6(E). The Deed of Trust Act permits a trustee's power of sale on qualifying trust real estate when another law does not require a judicial route. Check the property's use, the loan amount and purpose, borrower occupancy, and any other applicable restrictions before using a power of sale. The Act's definition of trust real estate excludes specified farm property and mineral interests under § 48-10-3(H).

DEED OF TRUST

THIS DEED OF TRUST is made this [DAY] day of [MONTH], [YEAR], by and among:

TRUSTOR (Borrower):
[TRUSTOR NAME(S)]
[ADDRESS]
[CITY, STATE ZIP]

TRUSTEE:
[TRUSTEE NAME]
[ADDRESS]
[CITY, STATE ZIP]

Trustee qualification under NMSA § 48-10-6(A): [________________________________]. The trustee must not also be the beneficiary under § 48-10-6(B).

BENEFICIARY (Lender):
[BENEFICIARY/LENDER NAME]
[ADDRESS]
[CITY, STATE ZIP]

RECITALS AND GRANT

WHEREAS, Trustor is indebted to Beneficiary in the principal sum of [PRINCIPAL AMOUNT] DOLLARS ($[AMOUNT]), as evidenced by a Promissory Note of even date herewith (the "Note");

NOW, THEREFORE, Trustor does hereby irrevocably grant, transfer, and assign to Trustee, in trust, WITH POWER OF SALE, the following described real property situated in [COUNTY] County, New Mexico:

SEE EXHIBIT A ATTACHED HERETO AND INCORPORATED HEREIN BY REFERENCE

Property Address: [PROPERTY ADDRESS], [CITY], New Mexico [ZIP CODE]

TOGETHER WITH all buildings, improvements, and fixtures now or hereafter placed thereon; all easements, rights, appurtenances, rents, royalties, and profits, only to the extent included in the Trust Property and permitted as trust real estate under NMSA § 48-10-3(H).

ARTICLE I - OBLIGATIONS SECURED

This Deed of Trust secures to Beneficiary:
(a) The repayment of the debt evidenced by the Note, with interest, and all renewals, extensions, and modifications;
(b) The payment of all other sums, with interest, advanced under this Deed of Trust;
(c) The performance of Trustor's covenants and agreements under this Deed of Trust and the Note.

ARTICLE II - COVENANTS OF TRUSTOR

Trustor covenants and agrees as follows:

2.1 Payment. Trustor shall pay when due the principal and interest on the debt evidenced by the Note and all other sums secured hereby.

2.2 Insurance. Trustor shall keep the improvements insured against loss by fire and other hazards, with Beneficiary named as loss payee.

2.3 Taxes and Assessments. Trustor shall pay before delinquency all taxes, assessments, and charges against the Trust Property.

2.4 Maintenance. Trustor shall maintain the Trust Property in good condition and repair and shall not commit or permit waste.

2.5 Defense of Title. Trustor shall defend title against all claims.

2.6 Compliance with Laws. Trustor shall comply with all laws, ordinances, and regulations affecting the Trust Property.

ARTICLE III - DEFAULT AND FORECLOSURE

3.1 Events of Default. The following shall constitute Events of Default:
(a) Failure to make any payment when due under the Note or this Deed of Trust;
(b) Breach of any covenant or agreement herein;
(c) Material misrepresentation by Trustor;
(d) Transfer of the Trust Property without Beneficiary's prior written consent, if enforcement is permitted by applicable law;
(e) Bankruptcy or insolvency of Trustor, only to the extent enforcement is permitted by applicable law.

JUDICIAL FORECLOSURE (Required for Covered Home Loans)

3.2 Judicial Foreclosure Required for Covered Home Loans. For a home loan covered by the Home Loan Protection Act (NMSA § 58-21A-6(E)), Beneficiary must use judicial foreclosure.

3.3 Notice of Right to Cure (NMSA § 58-21A-6(A)). For a covered home loan, before a foreclosure or collection action or other action to seize or transfer the property, Beneficiary must deliver the statutory notice of right to cure. The stated cure date must be at least thirty (30) days after delivery and the notice must include the information required by § 58-21A-6(A).

3.4 Court Process. Beneficiary must obtain a judicial foreclosure judgment before a court-ordered sale. A sale under that judgment must observe the interval in NMSA § 39-5-17 and the court's order.

TRUSTEE'S POWER OF SALE (Where Legally Available)

3.5 Power-of-Sale Availability. A trustee may use the power of sale under NMSA § 48-10-10(A) after default only if this deed qualifies under the Deed of Trust Act and no applicable law requires judicial foreclosure. Record the basis for this route before commencing sale: [________________________________].

3.6 Notice of Sale (NMSA §§ 48-10-10(C), 48-10-11, 48-10-12). For a trustee's sale, the trustee must publish and record the sale notice and send copies to persons entitled to notice under the Act. The power of sale may not be exercised until at least ninety (90) days after recording the notice.

3.7 Power of Sale. Upon default and after all required notices and waiting periods, Trustee shall, at the request of Beneficiary, conduct a public auction under NMSA § 48-10-13. The highest qualifying bid may be cash or a credit bid permitted by that section.

GENERAL PROVISIONS

3.8 Redemption After Trustee's Sale. Under NMSA § 48-10-16(A), the period is nine months or the shorter period stated in this deed, measured from the trustee's sale; a stated shorter period cannot be less than one month. No shorter period is selected unless a number from one through nine is completed here: [____] months. Section 48-10-16(E) addresses an omitted junior encumbrancer. Determine any judicial-sale redemption period separately.

3.9 Deficiency Judgment. After a trustee's sale, any separate deficiency action must comply with NMSA § 48-10-17, including its six-year outer limit and its prohibition on deficiencies under deeds of trust securing residential loans made to low-income households as defined there. A judicial foreclosure requires its own deficiency analysis; this deed does not promise a deficiency award.

3.10 Limitation Period. Under NMSA § 48-10-19, a trustee's sale or action to foreclose this deed must occur within the limitations period for an action on the secured contract. Determine that period and its accrual date from the actual contract and applicable law before enforcement.

ARTICLE IV - RECONVEYANCE

4.1 Release of Security. Upon satisfaction of all secured obligations, Beneficiary shall arrange and record an appropriate release of this deed of trust in accordance with applicable law. Any reconveyance or release charge must be authorized by the governing documents and law.

4.2 Recording. Beneficiary shall cause the release instrument to be recorded with the County Clerk in the county where the Trust Property is located.

ARTICLE V - TRUSTEE PROVISIONS

5.1 Trustee Service. The named trustee shall serve only if qualified under NMSA § 48-10-6 and willing to act under this deed.

5.2 Successor Trustee. Beneficiary may appoint a successor trustee under NMSA § 48-10-7 by recording the substitution in each county where any part of the Trust Property is located and sending the written notices required by that section.

5.3 Trustee's Fees. Trustor shall pay reasonable Trustee's fees for services rendered, subject to the loan documents and any applicable fee limits.

ARTICLE VI - RECORDING REQUIREMENTS

6.1 Recording. This Deed of Trust shall be recorded with the County Clerk of [COUNTY] County, New Mexico.

6.2 Recording Fees. New Mexico recording fees shall be paid upon recording.

ARTICLE VII - MISCELLANEOUS PROVISIONS

7.1 Governing Law. This Deed of Trust shall be governed by New Mexico law.

7.2 Successors and Assigns. This Deed of Trust binds and benefits the heirs, executors, administrators, successors, and assigns of the parties.

7.3 Severability. If a provision is held invalid, the remainder remains effective to the extent it can operate independently and still reflects the parties' essential bargain.

7.4 Notices. Contract notices shall be in writing and sent to the addresses set forth above, subject to any different delivery method or recipient required by law.

7.5 Entire Agreement. This Deed of Trust and the Note constitute the entire agreement of the parties.

ARTICLE VIII - RIDERS AND ADDENDA

The following riders are attached hereto and incorporated herein:

☐ Adjustable Rate Rider
☐ Condominium Rider
☐ Planned Unit Development Rider
☐ Second Home Rider
☐ 1-4 Family Rider
☐ Commercial Property Rider
☐ Other: [SPECIFY]

SIGNATURE PAGE

IN WITNESS WHEREOF, Trustor has executed this Deed of Trust as of the date first written above.

TRUSTOR(S):

Property and joinder: ☐ Trustor's separate property, held without a spouse as cotenant ☐ Purchase-money mortgage exception applies ☐ Both spouses join for community real property or property they hold together ☐ Other lawful basis for one signature: [________________________________]. Under NMSA § 40-3-13, obtain both spouses' signatures when that section requires joinder.

_______________________________
[TRUSTOR NAME]
Date: _________________________

_______________________________
[CO-TRUSTOR OR JOINING SPOUSE NAME, IF REQUIRED]
Date: _________________________

ACKNOWLEDGMENT

STATE OF NEW MEXICO
COUNTY OF [COUNTY]

This instrument was acknowledged before me on this _____ day of ______________, 20___, by [TRUSTOR NAME(S)].

_______________________________
Notary Public
My Commission Expires: ___________

[NOTARY SEAL]

EXHIBIT A

LEGAL DESCRIPTION

The land referred to herein is situated in [COUNTY] County, State of New Mexico, and is described as follows:

[INSERT COMPLETE LEGAL DESCRIPTION]

Parcel ID: [NUMBER]

This document prepared by:
[PREPARER NAME]
[ADDRESS]
[PHONE]
[EMAIL]