Nevada Foreclosure Laws

Expected Timeline: About four months
Security Instrument: Mortgage or Deed of Trust. Deed of trust most common.
Type of Process: Judicial or nonjudicial. Nonjudicial foreclosure most common in Nevada.
Protections for Servicemembers: None.
Time to Respond: Homeowners must receive two notices. The first is a three month Notice of Default and Election to sell. The second is a three week notice of sale.
Reinstatement Period: Homeowners may reinstate the loan within 35 days of lender filing notice of default with recorder's office.
Protections for High-Cost Mortgages: Nev. Rev. Stat. § 598D.010 to 598D.150
Redemption Period: None.
Eviction Process: New owner must give former owners a three day notice to quit the property. After this has expired, an eviction lawsuit may be filed.
Deficiency Judgments: Allowed if a separate lawsuit is filed within six months of sheriff sale. Certain limits apply.
Limits on Deficiency Judgments: Allowed, but limited to the lessor of the following: the difference between the debt and the fair market value; or the difference between the debt and the sales price at auction, including interest from the date of sale.
Cash Exempted in Bankruptcy: None.
State Statutes: Nev. Rev. Stat. § 107.080

In Nevada , lenders may pursue either a Non-Judicial or Judicial Foreclosure process. The Non-Judicial process is the one that is most commonly used.

The Judicial Foreclosure process is used rarely in Nevada, and only when there is no power of sale clause present in the original loan documents, or if the lender is suing the borrower for a deficiency judgment. The lender must sue the borrower in court and obtain a decree of foreclosure and order of sale. The court may give the borrower up to one year to redeem the property.

The more commonly used process in Nevada is the Non-Judicial Foreclosure, which requires the original loan documents to contain a power of sale clause. This clause authorizes the lender to sell the property in the event of a default by the borrower. If the clause specifies the time, place, and terms of the sale, then those procedures must be adhered to.

The sale process in Nevada is begun with a notice of default and election to sell being recorded in the county in which the property is located. When it is recorded, a copy is also sent by certified mail to the borrower. The borrower then has thirty-five (35) days to cure the default and bring the loan current.

If the borrower plans to cure the default, he must file a notice of intent to cure no later than fifteen (15) days before the sale. The amount to bring the loan current is due by noon on the day before the sale date.

The entire amount of the loan may be called due in the notice of default and election to sell. This is only possible if the terms of the loan documents allow for acceleration of the loan upon default. If the borrower is able to cure the default within the thirty-five day period, then acceleration of the loan by the lender is not permitted.

The date of the sale can not be less than three months from the date the notice is recorded in the county. The notice of default and election to sell will designate the time and place of the sale. The high bidder receives a trustee's deed once the sale is completed. The lender will usually bid the amount due plus costs. If there are no higher bids on the property, the property will revert to the lender.

The borrower has no redemption period if the foreclosure was Non-Judicial. The lender has the right to sue the borrower for a deficiency judgment within three months of the date of the sale.

State Website: www.leg.state.nv.us/nrs