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Nevada Foreclosure Law Summary
Quick Facts
- Judicial Foreclosure Available: Yes
- Non-Judicial Foreclosure Available: Yes
- Primary Security Instruments: Deed of
Trust, Mortgage
- Timeline: Typically 120 days
- Right of Redemption: Yes
- Deficiency Judgments Allowed: Yes |
In Nevada, lenders may foreclose on
deeds of trusts or mortgages in default using either a judicial or non-judicial
foreclosure process.
Judicial Foreclosure
The judicial process of foreclosure, which involves filing a lawsuit
to obtain a court order to foreclose, is used when no power of sale
is present in the mortgage or deed of trust. Generally, after the court
declares a foreclosure, your home will be auctioned off to the highest
bidder.
The borrower has one year (12 months) after the foreclosure sale to
redeem the property if the judicial foreclosure process is used.
Non-Judicial
Foreclosure
The non-judicial process of foreclosure is used when a power of sale
clause exists in a mortgage or deed of trust. A "power of sale" clause
is the clause in a deed of trust or mortgage, in which the borrower
pre-authorizes the sale of property to pay off the balance on a loan
in the event of the their default. In deeds of trust or mortgages where
a power of sale exists, the power given to the lender to sell the property
may be executed by the lender or their representative, typically referred
to as the trustee. Regulations for this type of foreclosure process
are outlined below in the "Power of Sale Foreclosure Guidelines".
- Power of Sale
Foreclosure Guidelines
- If the deed of trust or mortgage contains a
power of sale clause and specifies the time, place and terms of sale,
then the specified procedure must be followed. Otherwise, the non-judicial
power of sale foreclosure is carried out as follows:
- A copy of the notice of default and election
to sell must be mailed certified, return receipt requested, to the
borrower, at their last known address, on the date the notice is
recorded in the county where the property is located. Any additional
postings and advertisements must be done in the same manner as for
an execution sale in Nevada.
Beginning on the day after the notice of default and election was
recorded with the county and mailed to the borrower, the borrower
has anywhere from fifteen (15) to thirty five (35) days to cure
the default by paying the delinquent amount on the loan. The actual
amount of time given is dependent on the date of the original deed
of trust.
- The owner of the property may stop the foreclosure
proceedings by filing an "Intent to Cure" with the Public Trustee's
office at least fifteen (15) days prior to the foreclosure sale
and then paying the necessary amount to bring the loan current by
noon the day before the foreclosure sale is scheduled.
- The foreclosure sale itself will be held
at the place, the time and on the date stated in the notice of default
and election and must be conducted in the same manner as for an
execution sale of real property.
Lenders have three (3) months after the
sale to try and obtain a deficiency judgment. Borrowers have no rights
of redemption.
More information
on Nevada foreclosure laws.
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