Timeline:
120 Days
Redemption:
12 months if Judicial Foreclosure
Deficiency
Judgments: Yes
Judicial
Foreclosure: Yes, although not common
Non-Judicial
Foreclosure: Yes
Security
Instruments: Deed of Trust, Mortgage
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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.
Nevada Foreclosure Law