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The Basics of Foreclosure in Nevada

Posted by admin on July 7, 2024
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The Basics of Foreclosure in Nevada

Foreclosure in Nevada is primarily a non-judicial process, meaning it does not require court intervention unless specific circumstances arise. Here’s an overview of the key steps involved in the foreclosure process in Nevada:

1. Default

  • Missed Payments: The foreclosure process begins when a homeowner misses one or more mortgage payments.
  • Notice of Default (NOD): After a default on the loan, the lender can file a Notice of Default. This is typically done after three missed payments but can vary depending on the lender’s policies and the terms of the mortgage agreement.

2. Notice of Default (NOD)

  • Filing: The lender files the NOD with the county recorder’s office and sends a copy to the borrower.
  • Reinstatement Period: After the NOD is recorded, the borrower has a 35-day period to reinstate the loan by paying the past-due amount plus any fees and penalties. This is also known as the cure period.

3. Notice of Trustee’s Sale

  • Scheduling the Sale: If the loan is not reinstated within the reinstatement period, the lender can proceed by filing a Notice of Trustee’s Sale. This must be recorded at least 20 days before the sale date and published in a local newspaper once a week for three consecutive weeks.
  • Notification: The borrower must be notified at least 20 days before the sale.

4. Trustee’s Sale

  • Auction: The property is sold at a public auction to the highest bidder. The auction is usually held at the county courthouse.
  • Winning Bidder: The highest bidder must pay the full bid amount, typically in cash or cashier’s check, immediately after the auction.

5. Post-Sale Process

  • Trustee’s Deed Upon Sale: The winning bidder receives a Trustee’s Deed, transferring ownership of the property.
  • Eviction: If the former homeowner does not vacate the property, the new owner may need to go through a formal eviction process to remove them.

Key Points to Consider

  • Right to Mediation: Nevada law provides homeowners with the option to request mediation to try and work out a loan modification or other resolution with the lender before the foreclosure sale.
  • Deficiency Judgments: Nevada allows lenders to pursue a deficiency judgment if the sale proceeds do not cover the total amount owed on the mortgage, but this is subject to certain limitations and timeframes.
  • Homeowner Protections: Homeowners have specific rights and protections under Nevada law, including requirements for lenders to provide certain notices and opportunities to cure the default.

Legal References

  • Nevada Revised Statutes (NRS) Chapter 107: This chapter provides the statutory framework for the non-judicial foreclosure process in Nevada.
  • NRS 107.080: Details the requirements for Notices of Default and Trustee’s Sale.
  • NRS 107.086: Outlines the Foreclosure Mediation Program, which aims to facilitate communication between lenders and borrowers.

Conclusion

Understanding the foreclosure process in Nevada is crucial for homeowners facing financial difficulties and potential foreclosure. By being aware of the steps and legal requirements, homeowners can better navigate the situation and explore available options to avoid losing their homes.

If you have specific questions about your situation or need detailed legal advice, it’s advisable to consult with a foreclosure attorney who can provide guidance based on your circumstances.

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