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

NEW MEXICO IS PRIMARILY A JUDICIAL FORECLOSURE STATE. Under the New Mexico Home Loan Protection Act (NMSA § 58-21A-6(E)), judicial foreclosure is required for most residential properties. Non-judicial foreclosure under the Deed of Trust Act (NMSA Chapter 48, Article 10) is available only for commercial and business properties valued over $500,000 and certain non-residential loans.

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]

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.

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;
(e) Bankruptcy or insolvency of Trustor.

JUDICIAL FORECLOSURE (Required for Most Residential Properties)

3.2 Judicial Foreclosure Required for Residential Property. For loans covered by the Home Loan Protection Act (NMSA § 58-21A-6(E)), Beneficiary must foreclose judicially by filing a lawsuit in district court.

3.3 Notice of Right to Cure (NMSA §§ 58-21A-3, 58-21A-6). Before filing a foreclosure lawsuit, Beneficiary must deliver a notice of the right to cure the default to Trustor at least thirty (30) days before filing the lawsuit.

3.4 Court Process. Beneficiary files a complaint and serves Trustor with summons. The court will issue a judgment and order a foreclosure sale.

NON-JUDICIAL FORECLOSURE (Commercial Property Only)

3.5 Non-Judicial Foreclosure Availability. Non-judicial foreclosure under NMSA §§ 48-10-1 through 48-10-21 is available ONLY for:
(a) Commercial and business properties valued over $500,000; and
(b) Loans not covered by the Home Loan Protection Act.

3.6 Notice of Sale (NMSA §§ 48-10-10, 48-10-11). For non-judicial foreclosure, a notice of sale must be recorded in the county records at least ninety (90) days before the sale date.

3.7 Power of Sale. Upon default and after providing all required notices, Trustee shall, at the request of Beneficiary, sell the Trust Property at public auction to the highest bidder for cash.

GENERAL PROVISIONS

3.8 Redemption Period. New Mexico law generally gives Trustor nine (9) months to redeem the property after a foreclosure sale. However, the terms of the mortgage or deed of trust can and usually do reduce the redemption period to one (1) month.

3.9 Deficiency Judgment. Beneficiary may obtain a deficiency judgment as part of a judicial foreclosure. For non-judicial foreclosure, Beneficiary must start a lawsuit for deficiency within six (6) years after the foreclosure sale (NMSA § 48-10-17). No deficiency judgment may be sought on residential loans to low-income households.

3.10 Statute of Limitations. Foreclosures in New Mexico have a statute of limitations of six (6) years from the date of last payment.

ARTICLE IV - RECONVEYANCE

4.1 Full Reconveyance. Upon payment of all sums secured hereby, Beneficiary shall request Trustee to reconvey the Trust Property to Trustor. Trustee shall reconvey the Trust Property without warranty and without charge to Trustor.

4.2 Recording. The Reconveyance shall be recorded with the County Clerk in the county where the Trust Property is located.

ARTICLE V - TRUSTEE PROVISIONS

5.1 Trustee Acceptance. Trustee accepts this trust when this Deed of Trust is recorded.

5.2 Successor Trustee. Beneficiary may appoint a successor trustee by recording a substitution of trustee in the county where the Trust Property is located.

5.3 Trustee's Fees. Trustor shall pay reasonable Trustee's fees for services rendered.

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 any provision is held invalid, all other provisions remain in full force.

7.4 Notices. All notices shall be in writing and sent to the addresses set forth above.

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):

_______________________________
[TRUSTOR NAME]
Date: _________________________

_______________________________
[TRUSTOR NAME]
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]