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Summary:
| Judicial Foreclosure |
Sometimes |
| Non-Judicial Foreclosure |
Yes, most common |
| Security Instruments |
Deed of Trust, Mortgage |
| Right of Redemption |
judicial foreclosure only |
| Deficiency Judgments |
Yes |
| Time Frame |
Usually 120 days |
Judicial foreclosure in Nevada is rarely used, and only in the absence of a power of sale clause in the loan document or when the lender is seeking a court order for a deficiency judgment. The lender must sue the borrower to obtain a decree of foreclosure and order of sale. The court may also order that the borrower has up to one year to redeem the property.
Non-judicial foreclosure is the most common form of foreclosure in Nevada. This process is used when there is a power of sale clause authorizing the lender, in the event of default, to sell the property to satisfy the loan balance. If the power of sale clause includes the time, place and terms of sale, then that procedure must be followed. If not, the process is as follows:
- A Notice of Default and Election to Sell is recorded in the county in which the property is located. It is also mailed by certified mail on the date of recordation to the borrower. The borrower then has 35 days in which to cure the default.
- The borrower must file a Notice of Intent to Cure at least 15 days prior to the sale date and then pay the amount due by noon on the day before the sale date.
- If the terms of the loan document allow for acceleration in the event of default, the entire balance of the loan may be called due in the Notice of Default and Election to sell. However, if the borrower cures the default plus costs within the 35 day period, acceleration is not permitted.
- The sale date shall be not less than three months from the recordation of the notice of default and election to sell. The sale will be conducted at the time and place designated in the notice of default and election to sell. The successful bidder receives a trustee’s deed on completion of the sale. The lender usually bids in the amount of the balance due plus costs. If no one else bids, the property reverts to the lender.
- The lender has three months following the sale date to sue for any deficiency balance. The owner in default has no right of redemption in non-judicial foreclosure.
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