When you develop a definite plan of action with well-timed, well-informed steps, you can stop the foreclosure process and save your home. We have outlined the foreclosure process for the state of Nevada.
Judicial Foreclosure Available: Yes
Non-judicial Foreclosure Available: Yes
The lender may use a deed of trust with a power of sale clause as the mortgage. This permits the lender to foreclose by following a statutory procedure for sale without the necessity of filing a lawsuit in court.
Preliminary Notices
Non-judicial Foreclosure
The borrower has three months from the date a notice of default and election to sell is recorded to perform and cure the default under the deed of trust. If the borrower fails to do so, then the property will be sold at foreclosure. Recording a notice of default and election to sell must be recorded by the deed of trust's trustee.
Mailing
A copy of the notice of default and election to sell must be mailed certified, return receipt requested, to the borrower and any owner of the property on the date the notice is recorded. The notice must be mailed to the last address the lender has, but if the current address of the borrower is not known, the trustee may send it to the property in foreclosure. The trustee must send the notice of default and election to sell to the borrower within l0 days of recording the same to anyone who recorded a request for such a notice.
Advertising and Posting
The property must be advertised and posted in the same manner as for an execution sale.
Cure
The borrower has 35 days from the first day following the day on which the notice of default and election to sell was recorded to cure the default. The borrower may cure the default by performing under the loan agreement. Usually this would mean paying the missed payments or other sums due to the lender, but not the accelerated loan balance.
Sale Procedures
Time
The time of sale must be specified in the foreclosure notice. It should be for a time no less than that which would be specified for an execution sale.
Place
The foreclosure sale may be made at the trustee's office, even if the office is not in the same county as the property.
Manner
The property should be sold in the manner required by law for the sale of real property on execution.
Special Procedures
The court may issue an injunction to restrain waste (destruction) of the property during foreclosure.
Deficiency
If the foreclosure fails to generate sufficient proceeds to pay off what remained due on the loan, then the lender may sue for a deficiency within three months after the foreclosure sale. A hearing will be held to determine the market value of the property. Notice of such hearing must be served at least 15 days before the hearing. An appraiser may be appointed by the court, on its own motion or on request, to have the foreclosed property appraised to find the market value. At the hearing, the greater of the market value or the foreclosure sale price must be credited against what remained unpaid on the loan. The court may award a deficiency judgment for the difference. The deficiency judgment must be sought within six months after the date of foreclosure. Even if multiple properties are being foreclosed on by the lender, the deficiency must be sought within two years of the initial foreclosure on the first of the multiple properties.
Redemption
A deed of trust sale gives the foreclosure purchaser clear title free of any right of redemption for the old borrower. There is a one year redemption on judicial sales.
Foreclosure Timeline
As borrowers fall behind in their payments, they can expect lenders to react in specific ways at specific times. Here's a look at the timeline from late payment to foreclosure.
DAY 1 It's the first of the month, and the mortgage payment is due. The borrower misses the payment.
DAY 16-30 A late charge is assessed. The company that processes the borrower's payments (called the mortgage servicer) begins to attempt to make contact with the borrower to find out why the payment is late. File is sent to the Collection Department.
DAY 45-60 The servicer sends a “demand” or “breach” letter to the borrower pointing out that terms of the mortgage have been violated. The borrower is given 30 days to resolve the situation by paying the delinquent amount.
DAY 90 Notice of Default. Foreclosure proceedings start with a Notice of Default (NOD). The document is recorded at the request of the lender by the trustee and is recorded in the county in which the property is located. The recording of Notice of Default gives “Constructive Notice” to the public.
After the recording of the Notice of Default, in the state of Nevada, the borrower and junior lien holders are given proper notification and the borrower has 90 days to bring their account current. This period is referred to as the Reinstatement Period.
DAY 180 Notice of Trustee Sale. If the borrower does not reinstate their account within the 90 day period, the lender will authorize and instruct the Trustee to record the Notice of Trustee Sale (NOS).
DAY 201 After 21 days of the recording of the NOS, a foreclosure sale can take place at public auction. The property may be sold to a third party bidder or revert back to the lender for a specified amount.
Bidders are required to bring cashier's checks or money orders to the sale in an amount equal to or higher than the lenders opening bid. The auctioneer will qualify each bidder and the successful bidder will have to tender full payment at the sale.
