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Nevada Foreclosure Law

Discussion in 'Foreclosure Laws' started by Maurice Bedard, Dec 27, 2007.

  1. Maurice Bedard

    Maurice Bedard Call 1-800-779-4547 Staff Member Loan Safe Mortgage

    - Judicial Foreclosure Available: Yes

    - Non-Judicial Foreclosure Available: Yes

    - Primary Security Instruments: Deed of Trust, Mortgage

    - Timeline: Typically 120 days

    - Right of Redemption: Yes

    - Deficiency Judgments Allowed: Yes

    In Nevada, lenders may foreclose on deeds of trusts or mortgages in default using either a judicial or non-judicial foreclosure process.

    Judicial Foreclosure

    The judicial process of foreclosure, which involves filing a lawsuit to obtain a court order to foreclose, is used when no power of sale is present in the mortgage or deed of trust. Generally, after the court declares a foreclosure, your home will be auctioned off to the highest bidder.

    The borrower has one year (12 months) after the foreclosure sale to redeem the property if the judicial foreclosure process is used.

    Non-Judicial Foreclosure

    The non-judicial process of foreclosure is used when a power of sale clause exists in a mortgage or deed of trust. A "power of sale" clause is the clause in a deed of trust or mortgage, in which the borrower pre-authorizes the sale of property to pay off the balance on a loan in the event of the their default. In deeds of trust or mortgages where a power of sale exists, the power given to the lender to sell the property may be executed by the lender or their representative, typically referred to as the trustee. Regulations for this type of foreclosure process are outlined below in the "Power of Sale Foreclosure Guidelines".

    Power of Sale Foreclosure Guidelines

    If the deed of trust or mortgage contains a power of sale clause and specifies the time, place and terms of sale, then the specified procedure must be followed. Otherwise, the non-judicial power of sale foreclosure is carried out as follows:
    1. A copy of the notice of default and election to sell must be mailed certified, return receipt requested, to the borrower, at their last known address, on the date the notice is recorded in the county where the property is located. Any additional postings and advertisements must be done in the same manner as for an execution sale in Nevada.

      Beginning on the day after the notice of default and election was recorded with the county and mailed to the borrower, the borrower has anywhere from fifteen (15) to thirty five (35) days to cure the default by paying the delinquent amount on the loan. The actual amount of time given is dependent on the date of the original deed of trust.
    2. The owner of the property may stop the foreclosure proceedings by filing an "Intent to Cure" with the Public Trustee's office at least fifteen (15) days prior to the foreclosure sale and then paying the necessary amount to bring the loan current by noon the day before the foreclosure sale is scheduled.
    3. The foreclosure sale itself will be held at the place, the time and on the date stated in the notice of default and election and must be conducted in the same manner as for an execution sale of real property.
    Lenders have three (3) months after the sale to try and obtain a deficiency judgment. Borrowers have no rights of redemption.

    source http://www.foreclosurelaw.org/Nevada_Foreclosure_Law.htm

    Trustee Foreclosure Sales are more common

    Pre-foreclosure Period

    In Nevada, many mortgages allow lenders to sell a property once an owner defaults without having to file a lawsuit. A lender begins the foreclosure process by recording a notice of default with the county recorder and mailing the notice to the borrower. A borrower or any secondary lender has 35 days from the date the default notice is recorded to pay off the default and stop the foreclosure.

    At least three months after recording the notice of default, the lender can schedule a foreclosure sale if the borrower has not paid off the default amount.

    Notice of Sale / Auction

    A trustee (third party named in the deed of trust) carries out the public sale. A notice of sale is posted at least 20 days before the trustee sale date in three public places and published in a local newspaper once a week for three weeks. The notice of sale is also mailed to the affected parties.

    The sale may be at the trustee’s office, and anyone may bid. Except for the lender, the winning bidder has to pay the full bid amount in cash or cashier’s check to the trustee. If the sale is postponed, a public announcement is made at the time and place of the sale. After the sale, the trustee transfers ownership to the winning bidder.

    An out-of-court foreclosure provides the winning bidder with clear title, and there is no redemption period for the borrower after an out-of-court foreclosure sale. Although court foreclosures are uncommon in Nevada, there is a one-year redemption period for this type of foreclosure.

    source http://www.realtytrac.com/foreclosure-laws/nevada-foreclosure-laws.asp
  2. ARK.L.M

    ARK.L.M LoanSafe Member

    How would I find out if a Judgement had been filed, through the county, city or the assesors office? Thanks
  3. Serenity

    Serenity LoanSafe Member

    Info on Nevada's new Foreclosure Mediation Laws

    Nevada Foreclosure Mediation

  4. caldwell02

    caldwell02 LoanSafe Member

    We all need to tell our own State congressmen and senators about this!!!!!!
  5. AK32K

    AK32K LoanSafe Member

    This is great info guys.<?xml:namespace prefix = o ns = "urn:schemas-microsoft-com:eek:ffice:eek:ffice" /><o:p></o:p>
    I'm in a situation that I'm sure some other folks are in but have not been able to find additional info in this forum, so I would really appreciated if you guys could point me in the right direction or send me a link where people are taking about a similar issue.<o:p></o:p>
    I bought a condo in LV in 2005 (Sedona on the Blvd.) for 255K. Because of a law suit the association is involved with, these units are selling for about 65K since no bank will finance units in this complex.<o:p></o:p>
    I live in California and bought the unit as a second home/investment. I have a first and a second. I would like to walk away from this condo since but I'm concerned about a deficiency judgment from the banks. I do not own any other properties in LV or CA but based on income I could potentially afford the mortgage.<o:p></o:p>
    Does any one know if banks are going after deficiency judgments, especially for someone out of state? I really don't have any assets, just my job.
    Any guidance on this would be greatly appreciated<o:p></o:p>
    <o:p> </o:p>
  6. Serenity

    Serenity LoanSafe Member

    The UNLV Boyd School of Law offers a Legal Aide clinic with a variety of free classes that are open to the public. One of them is on the Nevada Foreclosure Mediation Program.

    Legal Aide Center of Southern Nevada - Foreclosure Section

    Bonus - they posted the class manual online. I found it to be a really good read even though I knew 80% of the information in it. They really break down the process, players, documentation requirements, timelines etc.

    Foreclosure Mediation Class Manual
  7. UnderwaterInLV

    UnderwaterInLV LoanSafe Member

    Haven't some of the laws in Nevada listed in the first post changed since 2007? I remember reading 6 months for the deficiency lawsuit? Does anyone have a good source (other than the NRS) for current foreclosure laws in Nevada?

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