First Payment Default and Foreclosure Laws in Nevada
A mortgage agreement obligates the homeowner to pay a certain amount per month until the home loan is paid off, which usually takes 15 to 30 years depending on the mortgage terms. If a homeowner fails to pay the mortgage as agreed, he is considered to be in default. Nevada law allows lenders to take action against debtors in default, regardless of whether it is the first time they have defaulted.
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Power of Sale
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If the mortgage agreement includes a power of sale clause, the lender may foreclose on the property without going through the court system. Otherwise, the lender may only foreclose after getting a court order to do so. If the borrower requests mediation, the lender must agree to it prior to foreclosing on the home, even if the foreclosure occurs outside of court. Courts can order mediation if the situation warrants it.
Notice of Sale
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Prior to a foreclosure in Nevada, the lender must publicly post a notice of sale in at least three different publications. The lender normally does this by placing an ad in the local newspaper's legal advertising section for a minimum of three weeks prior to selling the home. The lender must also send this notice to the homeowner through the mail at least 21 days prior to the foreclosure sale.
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Intent to Cure
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If the debtor wishes to halt the foreclosure of her home, after receiving a notice of sale she may file an Intent to Cure form with the public trustee of the foreclosed property. The debtor must do this 15 days prior to the sale of the home and must pay the default amount before the date of sale. If she does this, the public trustee must cancel the foreclosure sale of the home.
Judicial Foreclosure
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If the lender goes through the Nevada court system, it must first file a suit against the debtor. The court sets a hearing date. At the hearing, the court hears both sides and may order mediation or order the borrower to pay the lender. The court also sets a date that the borrow and lender must come to an agreement regarding payment; if the borrower does not make satisfactory arrangements by this date, the court begins foreclosure proceedings.
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