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.
The citations to Nevada’s foreclosure statutes are:
We’ve summarized important parts of Nevada’s foreclosure laws below. You can find more detailed articles on various aspects of Nevada foreclosure law in Nolo’s Nevada Foreclosure Law Center.
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). Since most foreclosures in Nevada are nonjudicial, this article focuses on that process.
Nevada law requires three foreclosure notices (in addition to a pre-foreclosure 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 the borrower and/or the person who holds title (as well as other parties with an 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. (Learn more about Nevada's Foreclosure Mediation Program.)
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:
For a mortgage loan after October 1, 2003, that is subject to the Home Ownership and Equity Protection Act of 1994 (HOEPA), Nevada law requires the lender to serve the borrower a notice at least 60 days prior to the foreclosure. Nev. Rev. Stat. § 107.085. Violations of high-cost home loan statutes support a defense to foreclosure. Nev. Rev. Stat. § 598D.110.
“Reinstating” is when you catch up on the missed payments (plus fees and costs) in order to stop a foreclosure. (Learn more about reinstatement to avoid foreclosure.)
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, foreclosed homeowners cannot redeem the home following a nonjudicial foreclosure. (To get details on redemption after a foreclosure in Nevada, see Nolo’s article If I lose my home to foreclosure in Nevada, can I get it back?)
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.
After a Nevada foreclosure sale, the purchaser must give the homeowner a three-day notice to quit (move out) before starting an eviction action in court. Nev. Rev. Stat. § 40.255.