SellingNorthernNV

A foreclosure is a legal process whereby a lender takes back real property after a borrower has failed to make loan payments. Nevada allows for two different types of foreclosures, judicial foreclosure and non-judicial foreclosure. Each type of foreclosure has different timelines. The lender may use either of these two types of foreclosures, but not both. Following either type of foreclosure, the lender may be able to sue the borrower for any deficiency remaining after the sale of the property.

A judicial foreclosure occurs when a lender files for foreclosure with the court, and then records a notice of pending lawsuit. After filing for foreclosure in this manner, a trial is held and a judgment for foreclosure may be issued at its conclusion. This type of foreclosure is typically the more expensive route to take, and therefore very seldom used by lenders.

A non-judicial foreclosure occurs outside of court utilizing the terms outlined in the Deed of Trust signed by the borrower when the loan was originated. This Deed of Trust contains a Power of Sale clause which outlines the terms in which the lender may foreclose. Since this type of foreclosure occurs outside of the courts, it is normally less costly on the lender, and is typically the preferred way to foreclose on a property.

Because non-judicial foreclosures are the most common form of foreclosure in Nevada, the timelines outlined below will refer to those in a non-judicial foreclosure.

Default period

No set time – A lender will typically begin their foreclosure following a default period. Although the Deed of Trust may outline the minimum delinquency period required before the lender may begin to foreclosure, there is no set time in which they must begin to foreclose on your property and may take the lender as little as 30 day to 6 months (or more) to begin the process.

Notice of Default and Election to Sell (NOD)

Timeline Begins – After the initial Default period, the lender must file a NOD with the county recorder’s office located within the county the property is located. Copies of this document must also be mailed to the appropriate parties that have an interest in the property (i.e.: borrower and junior lien holders). Once this document is recorded, the foreclosure process has legally begun. If owner occupied, the lender must also inform the borrower that they are eligible to participate in the Nevada Foreclosure Mediation Program.

Reinstatement period

35 days following NOD – The borrower or secondary lender(s) may pay off any delinquent amount and reinstate the loan within these 35 days following the recording of the NOD.

Notice of Sale

90 days following NOD – The lender may file with the county recorder’s office a Notice of Sale (NOS), which will indicate the date, time, and place the foreclosure sale will occur.

21 days before sale date – The notice of sale must be posted at three public places and mailed to the appropriate parties. The sale must also be published for three consecutive weeks in an appropriate adjudicated newspaper before the sale may occur.

(Lender must also have recorded either a certificate of completion of the Nevada Mediation program, or certificate indicating that Mediation is not needed. See Nevada Foreclosure Mediation Program for more information.)

Sale Date

Once all the timeframes and requirements above have been met, the lender may carry out their foreclosure sale (Trustee’s Sale).

In Summary:

Default Period – No timeframe

Notice of Default (NOD) – Day 1 of foreclosure process

Notice of Sale (NOS) – 90 days from NOD (35 day reinstatement period included in this timeframe)

Sale Date – 21 days from NOS

Earliest time lender may foreclose – 111 days from the date the Notice of Default was filed.

Before or during this foreclosure process, there are a few alternatives that may be available to the borrower. These alternatives include (but not limited to); loan modification, repayment plan, extensions, deed-in-lieu of foreclosure, and short sale.

A short sale is a sales transaction in which the lender typically agrees to accept a payoff of less than the balance due on the loan in lue of foreclosure. In many cases, a short sale is preferred by the lender over an actual foreclosure. This is because lenders are in the business of making and servicing loans, and typically loose even more money when they have to take back properties and attempt to sell the properties themselves.

Should you have any questions or need further information,
please don’t hesitate to contact me, (775) 220-1630
Or visit my website: www.SellingHomesinReno.com

Joshua Talayka
NAR designated: Short Sale & Foreclosure Resource
Chase International
Office: 775 850 5900
Toll Free: 877 922 5900
Cell: 775 220 1630
Fax: 775 850 5901
985 Damonte Ranch Pkwy, Ste. 110
Reno, Nevada (NV) 89521

Legal disclaimer: I am not an attorney. The information contained in this article/blog is intended to provide general information on the subject and not to provide any legal representation or legal advice in any means. You should not act upon this or any information without first seeking independent legal counsel.

Tags: Chase International, deed of trust, Default, Foreclosure, Foreclosure Prevention, home retention, Judicial, Mediation, Nevada, NOD, non-judicial, NOS, Notice of Default, notice of sale, NV, Real Estate, Realtor, reno, short sale, Talayka, trustee sale, www.sellinghomesinreno.com, www.sellingnorthernnv.com

This entry was posted by Josh Talayka on Friday, July 30th, 2010 at 10:00 am and is filed under Foreclosure Mediation Program, Northern Nevada, Short Sale & Foreclosures. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.