If you are past due on your mortgage and have not successfully completed a loan modification, you are on the path to foreclosure.
A foreclosure is a legal process where — the person/company who owns the mortgage — sells a property to recover the amount owed on the mortgage.
If you are behind on your mortgage payments, a lender may proceed to foreclose upon the house in one of two ways. Either:
- In court through a civil case(judicial foreclosure); or
- Through a “power of sale” clause in your loan agreement (non-judicial foreclosure).
In a non-judicial foreclosure, the lender will record a Notice of Default and Election to Sell. Once that happens Nevada law requires that a Notice of Trustee Sale be recorded at least 20 days before the sale. If the foreclosure sale occurs before the short sale is approved and closed, you will lose your rights, title and interest in the home. If you receive a Notice of Default while your property is listed, you should notify your agent and seek legal counsel, credit counseling or other assistance in understanding your rights and responsibilities.
NEVADA FORECLOSURE LAW
Timeline for Non-Judicial Foreclosure Process
Foreclosure proceedings typically start after you have made no payments for at least 90 days.
- If you do not pay your mortgage, your lender will eventually send you via certified mail and taped to your door a Notice of Default.
- From the Notice of Default, the lender has the right to send you a Notice of Sale, via certified mail and taped to your door, in not less than 90 days.
- From the Notice of Sale, it’s 20 days to foreclosure.
from the date of the Notice of Default.
NEVADA FORECLOSURE TIMELINE
|DAY 1||Notice of Default and Election to sell is recorded.
An State of Nevada Election/Waiver of Mediation is sent to homeowner along with copy of Notice of Default and Election to Sell.
|Within the Next 10 Days||Notice of Default and Election to Sell must sent out to the Trustor/Owner and all the Lien Holders by U.S. Post Office Certified Mail.|
|1st Day after Mailing the NOD||A 35 day reinstatement period begins.|
|DAY 30||Election to Mediate expires 30 days from the date of the Notice of Default and Election to sell.|
|DAY 35||The right to reinstate expires. Not at midnight but at the end of the working day.|
|25 Days before Foreclosure||Lender notifies the IRS (if applicable).|
|DAY 91||The lender has the right to send out a Notice of Trustee’s Sale. From the date of the Notice of Trustee’s Sale it’s 20 days to foreclosure, unless otherwise specified in the notice. Notice of Trustee’s Sale must be sent via U.S. Registered Mail to all parties who require notification. The notice must also be posted within the County where the sale is to be held and where the property is located.|
|1 Week before Foreclosure||A bid price is typically established at this point. The bid amount includes principal, interest, advances and costs.|
|DAY 111||Day of Trustee’s Sale also known as the foreclosure day. Anyone interested in buying the property can bid on the property. Only cash or certified funds are accepted. After the sale, a new deed is provided for the new owner. The new owner may be the bank or the winning bidder.|
Over the last few years, we saw that many times lenders did not act this quickly in their execution of foreclosures but it is important to note that they have the right to do so.
What are the consequences of a foreclosure in Nevada?
A foreclosure will negatively affect your credit, including your ability to be approved for credit. You will almost certainly face much higher interest rates for loans and insurance.
In addition, a foreclosure will be reported on your credit report. This may prevent you from being approved for loans in the future.
What you can expect during the foreclosure process?
A foreclosure in Nevada results in you being evicted from your home and your house being sold. In order to protect your rights under the foreclosure law, it is important that you respond to the any foreclosure notices you may receive. Contact a Las Vegas short sale specialist as early on in the process as possible to avoid this situation for yourself.
If you are not making your payments, we encourage you to start the short sale process in Nevada as soon as possible. The best programs are available to those who start early. Contact a Las Vegas short sale specialist at 702-546-6432 or request a callback from a Las Vegas short sale specialist as soon as possible to understand the full range of your options.
*Neither Focus Commercial Group or Tania Michaels practice law. Information provided as a courtesy only and must be verified. For more information on Nevada foreclosure law, please contact an attorney.