In Nevada, lenders may
foreclose on deeds of trusts or mortgages in default
using either a judicial or non-judicial foreclosure
process.
Nevada Foreclosure Laws:
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.
Nevada
Foreclosure Laws:
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".
Nevada Foreclosure Laws:
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:
- 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.
- 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.
- 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.
More information on Nevada foreclosure laws. |
