- 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
