Nevada foreclosure law

Nevada foreclosure can be done on mortgages and deeds of trust in default, and may follow a judicial or non-judicial process. This means that lenders can foreclose in or out of court, depending on provisions in the contract. A typical foreclosure in Nevada takes 120 days, or approximately four months.

Judicial foreclosure
A judicial foreclosure takes place in court, wherein the lender files a lawsuit against the borrower. If the court confirms the default, it issues a court order and declares the foreclosure. The home is then put up for public auction and sold to the highest bidder. After the sale, the borrower has a Right of Redemption period of 12 months, during which he can pay the foreclosure sale price (plus interest and other fees) and regain possession of the home.

This process is used when the contract does not contain a Power of Sale clause. This clause would authorize the lender to sell the home as payment for the loan in case the borrower defaults.

Non-judicial foreclosure
In a non-judicial foreclosure, the lender exercises the Power of Sale specified in the contract. However, the authority can also be extended to a representative of the lender, known as the trustee. If the Power of Sale specifies the time, date, and place of the sale, the foreclosure will follow these terms. Otherwise, the following steps will take place:

1) The lender files a Notice of Default and Election at the county office where the borrower’s home is located. On the same day, they also send a copy by certified mail to the borrower, with a request for a return receipt. They can also post or publish the notice, as long as they follow the procedures for an execution sale.

2) Once the notice is recorded, the borrower is given a short time frame (between 15 and 35 days, depending on the date on the contract) to cure the default and stop the foreclosure. This is done by submitting an “Intent to Cure” at the office of the Public Trustee at least 15 days before the sale date, and paying the past-due balance by noon on the day before the sale.

3) If the borrower fails to cure the default in time, the foreclosure will push through on the date specified. The sale will be held at the time and place stated in the notice and follows the same procedures as an execution sale.

Borrowers have no Rights of Redemption in a non-judicial foreclosure. Lenders can also make a deficiency claim for the balance not covered by the foreclosure sale, as long as the suit is filed within three months after the sale.

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