- 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
