Paul Clark
In this Blog we open the conversation with
economic loss caused by the current mortgage
crisis.
Nebraska Foreclosure Law
Quick Facts
- Judicial Foreclosure Available: Yes
- Non-Judicial Foreclosure Available: No
- Primary Security Instruments: Mortgage
- Timeline: Typically 180 days
- Right of Redemption: Yes
- Deficiency Judgments Allowed: No
In Nebraska, lenders
may foreclose on a mortgage in default by using the
judicial foreclosure process.
Judicial Foreclosure
Generally, in judicial foreclosure, a court decrees
the amount of the borrowers debt and gives him or
her a short time to pay. If the borrower fails to
pay within that time, the clerk of the court then
advertises the property for sale.
In Nebraska, the court may order the entire property
to be sold, or just some part of it. The order of
sale may be delayed for up to nine (9) months after
the judgment if the borrower files a written request
for a delay with the clerk of the court within
twenty (20) days after the judgment is rendered.
Otherwise, the order commanding the sale of the
mortgaged property will be given twenty (20) days
after the judgment.
The borrower has the right to cure the default at
any time while the suit is still pending by paying
the delinquent amount owed on the mortgage, as well
as any interest and costs that have accrued.
However, the court may still enter a decree of
foreclosure and sale, which may be enforced if the
buyer goes into default on the mortgage again in the
future.
The sheriff must give public notice of the time and
place of the sale by: 1) posting the notice on the
courthouse door; 2) posting the notice in at least
five other public places in the county where the
property is located; and 3) by advertising the
property for sale once a week for a period of four
(4) weeks in a newspaper published in the county
where the property is located.
The court must confirm the sale after it takes place
and once this is occurs, the borrower has no right
of redemption.
