Nevada Foreclosure Law Summary
Stop Nevada Foreclosure
Quick Facts
- 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:
- 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
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