- 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.
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.
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 a 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 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, time and 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.