- Judicial Foreclosure Available: Yes
- Non-Judicial Foreclosure Available: No
- Primary Security Instruments: Mortgage
- Timeline: Typically 180 days
- Right of Redemption: Yes
- Deficiency Judgments Allowed: No
In Nebraska, lenders may foreclose on a mortgage
in default by using the judicial foreclosure process.
Judicial Foreclosure
Generally, in judicial foreclosure, a court
decrees the amount of the borrowers debt and gives him or her a
short time to pay. If the borrower fails to pay within that time,
the clerk of the court then advertises the property for sale.
In Nebraska, the court may order the entire
property to be sold, or just some part of it. The order of sale may
be delayed for up to nine (9) months after the judgment if the
borrower files a written request for a delay with the clerk of the
court within twenty (20) days after the judgment is rendered.
Otherwise, the order commanding the sale of the mortgaged property
will be given twenty (20) days after the judgment.
The borrower has the right to cure the default at
any time while the suit is still pending by paying the delinquent
amount owed on the mortgage, as well as any interest and costs that
have accrued. However, the court may still enter a decree of
foreclosure and sale, which may be enforced if the buyer goes into
default on the mortgage again in the future.
The sheriff must give public notice of the time
and place of the sale by:
1) posting the notice on the courthouse door; 2) posting the notice
in at least five other public places in the county where the
property is located; and 3) by advertising the property for sale
once a week for a period of four (4) weeks in a newspaper published
in the county where the property is located.
The court must confirm the sale after it takes
place and once this is occurs, the borrower has no right of
redemption.
More
information on Nebraska foreclosure laws.
