Foreclosure Process & Your Rights in Nevada
The foreclosure process is a legal recourse that terminates the ownership and/or occupancy rights of a borrower in relation to real property. Your rights as they relate to the foreclosure process in Nevada are based on the way the mortgaged property is titled. Two types of foreclosure proceedings are applicable in Nevada, but one is most prevalent.
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Title
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Nevada is primarily a title theory state in which the property title remains in trust until the mortgage loan is paid in full. A deed of trust secures the title to the property and often includes a power of sale clause that outlines the terms of a foreclosure. Mortgages can also serve as liens to a property title in Nevada, but this type of ownership is much less prevalent.
Types
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The non-judicial foreclosure process is the most common method of foreclosure in Nevada. Because the property title is held in trust and not issued in the name of the borrower, the mortgage lender has the right to initiate foreclosure without a court order if the borrower defaults on the mortgage loan. The non-judicial foreclosure process, also known as foreclosure by advertisement, is based on terms outlined in a power of sale clause contained within the deed of trust.
If a trust deed does not include a power of sale clause or if the property title is secured by a mortgage note, the Nevada foreclosure process is judicial. Lenders must file a lawsuit with the court for a foreclosure judgment.
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Default
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The lender cannot initiate a non-judicial foreclosure until first sending a notice of default via certified mail to the borrower. After receiving the notice of default, the borrower has the right to bring the account current, or cure the default, in 35 days. Additionally, the borrower has the right to stop the foreclosure within 15 days of the sale date by filing an intent to cure with the Nevada Public Trustee's office.
Notice
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In a Nevada non-judicial foreclosure process, notice guidelines of the intent to sell a property are outlined in the power of sale clause. The lender must issue a notice of foreclosure sale within 21 days of the foreclosure sale date in accordance with the sale date, time and place listed in the default notice.
Redemption Rights
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Your redemption rights in a Nevada foreclosure depend on the foreclosure process. A judicial foreclosure allows the borrower to redeem the property up to one year after the sale date. The borrower must pay the balance of the unpaid mortgage loan, plus costs, to redeem the property. In a non-judicial foreclosure, the borrower does not have a post-sale right of redemption.
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