If you're a homeowner facing a foreclosure in the state of Nevada, you probably have many questions about what will happen and what your rights are during the process. For example: What are the foreclosure procedures in Nevada? Will you have the right to reinstate your mortgage? Is it possible to get the house back after the foreclosure by redeeming it? Can your lender get a deficiency judgment after the foreclosure in Nevada?
To learn the answers to these questions, and more, keep reading. You'll find a summary of some of the key parts of Nevada's foreclosure law along with citations to the statutes so you can read the law yourself.
Most residential foreclosures in Nevada are nonjudicial, which means the foreclosure takes place outside of court (as opposed to judicial foreclosures, which go through the court system). Because most foreclosures in Nevada are nonjudicial, this article focuses on that process.
Nevada law requires three foreclosure notices (in addition to a preforeclosure notice): a notice of default, a danger notice, and a notice of sale.
Notice of default and election to sell. To start a nonjudicial foreclosure, the trustee (the third party that administers nonjudicial foreclosures in Nevada) records a notice of default and election to sell in the county records and sends a copy to each person who has a recorded request for a copy and each person with an interest or claimed interest in the property, within ten days following recordation. (Nev. Rev. Stat. §§ 107.080(3), 107.090).
The notice must include information about foreclosure mediation (unless the home is abandoned). (Nev. Rev. Stat. § 107.086).
The notice of default and election to sell must also be posted on the property. (Nev. Rev. Stat. § 107.087).
Danger notice. At least 60 days prior to the date of the sale, the trustee must serve the borrower with a "danger notice" stating that he or she is in danger of losing the home to foreclosure, along with a copy of the original promissory note. (Nev. Rev. Stat § 107.085).
The notice must be:
Notice of sale. Three months after recording the notice of default (or after 60 days if the home is abandoned), the trustee records a notice of sale and mails a copy of the notice to the borrower. (Nev. Rev. Stat §§ 107.080, 107.090).
The notice of sale must also be:
"Reinstating" is when you catch up on the missed payments (plus fees and costs) in order to stop a foreclosure. In Nevada, the right to reinstate expires five days before the sale date. (Nev. Rev. Stat. § 107.080).
In some states, you can redeem (repurchase) your home within a certain period of time after the foreclosure. In Nevada, however, foreclosed homeowners can't redeem the home following a nonjudicial foreclosure.
When the total mortgage debt exceeds the foreclosure sale price, the difference is called a "deficiency." Some states allow the lender to seek a personal judgment, called a "deficiency judgment," against the borrower for this amount, while other states prohibit deficiency judgments with what are called "anti-deficiency" laws.
In Nevada, the foreclosing party generally has the right to sue the borrower for a deficiency judgment after the foreclosure if it files the lawsuit within six months of the foreclosure sale unless all of the following conditions are met.
Also, even if the lender is allowed to get a deficiency judgment, the amount is limited to the lesser of:
If the party seeking the deficiency judgment acquired the right to obtain the judgment from a party that previously held that right, the judgment is limited to the difference between the amount the party paid to acquire the loan and the larger of the property's fair market value or the amount paid for the property at the foreclosure sale, plus interest and reasonable costs. (Nev. Rev. Stat. § 40.459).
If you want to learn more about the foreclosure process in Nevada or want to find out if you have any potential defenses to a foreclosure, consider talking to a foreclosure lawyer.
It's also a good idea to make an appointment to speak to a HUD-approved housing counselor, especially if you want to learn about different loss mitigation options.