Nevada Foreclosure Procedure
The State of Nevada has both Judicial and Non-Judicial Foreclosures.
Nevada foreclosure begins when a notice of default is recorded and elected to sell. A copy of the Notice of Default (NOD) and election to sell is mailed to the grantor and to the person who holds the title of record. A notice is then sent to the borrower declaring the entire balance due. After three months, If the borrower fails to cure the loan, then the property will be sold at foreclosure.
A copy of the notice of default and election to sell must be mailed certified, return receipt requested, to the borrower and any owner of the property on the date the notice is recorded. The notice must be mailed to the last address the lender has, but if the current address of the borrower is not known, the trustee may send it to the property in foreclosure. The trustee must send the notice of default and election to sell to the borrower within l0 days of recording the same to anyone who recorded a request for such a notice.
The trustee must give notice of the time and place of sale at least 21 days before sale. The trustee must also post similar notices in three public places, and publishes those notices three times in a newspaper once a week for three weeks. It should also be posted similar to an execution sale.
A thirty-five days (35) grace period is being extended to the borrower, from the first day following the day on which the notice of default and election to sell was recorded to cure or settle the arrears. This means paying the amount due before the foreclosure sale but not the accelerated loan or the whole mortgage amount.
The date, time and place for the foreclosure sale should be specified in the foreclosure notice. The foreclosure sale may be made at the trustee's office, even if the office is not in the same county as the property. The property should be sold in the manner mandated by law for the sale of real property on execution. The court may issue an injunction to prevent destruction of the property during foreclosure.
Foreclosure Deficiency Judgment
There is a possibility the lender may sue for a deficiency within three months after the Nevada foreclosure sale, if proceeds from the sale failed to generate enough funds to payoff the remaining balance. If this is the case, a hearing would be held to determine the market value of the property. The notice for such hearing must be served at least 15 days before the hearing and the property should be appraised to find its market value. At the hearing, the highest amount between the market value and the foreclosure sale price must be credited against defaulted payments on the loan. The court may award a deficiency judgment for the difference. The deficiency judgment must be sought within six months after the date of foreclosure.
Redemption Period
There is a one year redemption on judicial sales.
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